Golf has been an industry that has regularly followed business trends and models from the travel industry, often a few years after the practice has been fully tried and tested. Years ago I had written about the adoption of Revenue Management (RM) in the golf industry – a business tool that enables a golf facility to maximize profitability by managing the price of its fixed and perishable tee time inventory.
RM is a business practice developed in the 1980s by the airline industry in an effort to maintain profitability in the face of growing low-cost competition and raising operational costs. The pricing tool had gradually made its way into the golf industry, helping improve greens fee revenue by allowing courses to sell the tee times to the right golfers, at the right prices, and at the right time. It has provided the ability to match tee times with the golfer’s willingness to pay.