When the Dust Settles...

Ya’ know those strange questions that race through your mind at 2:00 am when you find yourself staring at the ceiling … crazy, pondering thoughts like “why do drive on the Parkway, but park on the Driveway?” Strange .. I know!

So, as we enter another month (we raced past weeks long ago!) of America being shutdown due COVID 19 … I ponder a perplexing question as it relates to the golf industry.

Could COVID 19 actually benefit the golf industry?

Consider this logic …

Recently on GolfTalk Live - shameless self promotion – Yes, I co-host a Golf Radio Show with Tony Leodora every Saturday morning on WNTP www.990theanswer.com from 7:00-8:00AM, and syndicated podcast channels on Spotify, Tune In, Google Podcasts and soon Apple Podcasts. Check our latest podcast - HERE

We have discussed the necessity of opening golf courses to provide an outlet for people seeking recreation. As golf has returned to all 50 states in some form or fashion - 

What has been the reaction …

In a recent interview with Steve Mays – President of Founder Group International, we discussed the resurgence of both the game and interest in walking. That perhaps as a result of COVID … people are reconnecting with golf as an outlet for viable recreation to fill a healthy recreational void. Ok, that’s not a bad thing – right?

Or, consider this recent Washington Post article quoting David Pillsbury as saying Club Corp rounds are “up 25 to 30 percent over the prior year. Our members are using the club more than they’ve ever used it before.” 

Again, extremely optimistic news … and evidence that golf is enjoying a bump in popularity as people recognize the inherent social distancing built into the sport. Let's face it ... 200 people on 200 acres with natural air flow, beats 200 people in 50,000 square foot shopping space.

However, for every Yin there is a Yang… And, the somber side of this pandemic is massive financial hardships experienced by many operators.

Consider New Jersey, where Government mandates still limit tee times to every 16 minutes - 50% of inventory. At one particular property the operator went immediately to in-season rates, eliminated all discounts and suspended their dynamic pricing models in an effort to drive rate, not volume. While the reduction of times has place a premium on the remaining inventory resulting in the course seeing a 20% higher GF/CF blend – the net impact still remains – this only slightly mitigates the massive losses being sustained versus prior years, due to the lack of volume. Interesting side note here – the demand for course access has spurred renewed interest in annual memberships to receive preferred bookings

Following this domino effect further ... as touched on last month - golf courses will shutter as a result of this pandemic!

Some recognized golf experts have estimated upwards of 30% of the current facilities will close as a result of the economic hardship. I do not feel it will be that excessive … but do feel we will see at minimum the current pace of annual closures to double in the next 12-18 months.

NOW, the perplexing question – is that bad? Rounds from a newly shuttered property will be displaced back into the market place, the reduction of competition in the same marketplace will only benefit surviving properties – through increased demand and price upward mobility. Darwinism ...

Obviously, if you are one of those courses considering closure – than likely yes it is terrible. I would also offer that we should speak now, to prepare for that exit strategy versus waiting until the fall and the prospects of carrying your club through another winter.

 I offer my assistance to help you whatever manner possible... need a colleague to bounce ideas off, want to help promote your property through my media network, and receive objective insights learned... give me a shout.

Your friend in golf ...

Allen

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