Dynamic Pricing: A Game-Changer or a Hazard for Golf Clubs?

Dynamic pricing can be a powerful tool for golf course operators, but its implementation requires careful consideration. Balancing revenue optimization with customer satisfaction is crucial to the success of any dynamic pricing strategy.

Dynamic pricing, also known as surge or demand pricing, is not new to the golf industry. However, it took a back seat after 2019, as many tee times were primarily reserved by members during the post-pandemic period.

As of 2023, dynamic pricing has re-emerged as demand within the industry has subsided. However, golf course operators should approach its use with caution. What may seem like a revenue-boosting strategy can quickly become a pitfall if not properly understood and managed.

What Exactly Is Dynamic Pricing?

Dynamic pricing is a strategy where the price of a product or service is adjusted continuously based on various factors such as demand, supply, competitor pricing, and market conditions. This strategy is supported by technology and data analytics, allowing businesses to set flexible prices in real-time.

While dynamic pricing might seem like a sophisticated tool to increase the number of rounds of golf sold, it’s essential to fully understand how the underlying algorithm works. Without this knowledge, golf clubs may find themselves in a precarious situation.