7.5 Revenue Generation in the Golf Industry

Golf courses face tough competition — not just from other courses in the area but also from other recreation facilities and hobby-focused venues nearby. Courses located in an area with ample recreation opportunities may find themselves struggling to capture the attention of athletes, adventure seekers, outdoor enthusiasts, and so many other types of customers.

Club Revenue Generation

Membership Options

The green fee “is the set fee golfers must pay at the pro shop or clubhouse in order to gain access to the course. In literal terms, a green fee is the fee you must pay to be allowed to get on the green” (Falduto, 2023, para. 3).  Golfers can also prepay their green fees through public course passes or private course memberships (Falduto, 2023).

Companies such as Golf North and Clublink have added variety to membership by offering several golf course options for players to play for one fee.  This is a popular membership option since it allows the members to choose where they play. However, it yields drawbacks such as geographics and environment.

Loyalty Programs

Loyalty programs are heavily used in the hospitality industry, especially airlines and hotels, as part of their Customer Relationship Management programs. Some examples of popular Canadian Loyalty programs include Air Miles, Canadian Tire Rewards, Aeroplan, HBC Rewards, and PC Optimum. Airline loyalty programs such as Air Canada Loyalty, are often targeted to high-value business travellers with less price sensitivity. They achieve loyalty status and perks while travelling as well as earning points to use for personal travel rewards. Once a loyalty program member obtains elite status with significant associated perks such as guaranteed room availability, airport club lounge access, etc., the customer is much less likely to use other brands.

This is a concept that has been embraced at golf courses as well.  Whether it is collecting customer data through VIP cards or special promotions, obtaining customer information is very important. Once members and guests have opted to receive communications, golf courses can provide special offers to keep bringing them back to the course.  Loyalty can be gained through tracking golfers’ spending and rewarding them for their business.

Read: 8 Ways You Can Attract and Retain Golfers with a Loyalty Program

Other Fees

Some courses have player fees, which include a cart rental; if this is not the case, an additional fee will apply (Faldutio, 2023).  If the course does not have a player fee that includes the motorized cart rental, charges will apply. You may also be able to rent a pull or push cart, depending on the course (Faldutio, 2023).

Tournaments

Golf tournaments are a good way to raise money while also promoting the organization.  People who love the game and can afford to attend these types of events are often able to become donors (Ensor, 2024).

Loyalty Program Attribution: “Chapter 11: Golf and Club Marketing” from Business Fundamentals for the Golf & Club Industry by Robert Foster is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.