18 February 2009
Revolution of Golf
Over the course of time, golf has undergone an evolution which has slowly changed the game in many ways. One could argue that the only thing that has remained unchanged is the basic purpose of the game: getting the ball into the hole with as few strokes as possible. The rules have changed and new game formats have been developed. Player demographics have changed too to encompass a wider scope of society and the equipment golfers use today is completely different compared to golfing gear a hundred years ago. .During the last 30 years, the evolution has also reached the long and deep traditions of the game. Golf clubs have turned from privileged sports clubs into modern businesses, thus requiring a new approach to club management. This evolution, which could even be called a revolution, is a challenge to golf entrepreneurs. The competition has become more intense leading to a situation where only the best service concepts will survive.
According to the KPMG report, in the last 20 years golf has outgrown both the movie and the music industry. In 2005, the volume of the golf industry was 195 billion dollars in the US and 53 billion dollars in Europe. While in the US, the markets have clearly matured, Europe is still a growing market with only a 1% participation rate. The overall development of the golf industry has been driven by the growth of the golf tourism branch.
Furthermore, the Golf revolution has brought about a significant increase in the amount of golfers, which has further lead to changes in player profiles. New players with different needs and aims have taken up the game. Not all golfers are interested in club membership or being a shareholder of the course anymore. More and more players want to play on different courses and to have the freedom to choose between them. The increasing number of golf courses, easier traveling, and the Internet facilitating the comparision of different clubs have all decreased the course loyalty of the players.
In addition to other courses, golf clubs also face increasing competition from other free time activities. For example, in Sweden, where the amount of players relative to the population is the highest in Europe, players have fled the overcrowded courses and taken up other hobbies. As in other free time activities, the game itself is not enough to keep the players satisfied. Modern consumers demand additional services from the moment they first contact the club to after game services. The core service in golf is naturally the course, but services like tee time reservation, club house services, information delivery, smooth play without unnecessary waiting times, after game services, training, and social networking are also equally important. For example, skiing resorts have developed various types of services to keep their customers just as active and happy when they are not hitting the slopes.
The ongoing revolution is challenging golf in many ways, but it also offers many opportunities to those able to seize them. A growing number of golfers means a growing demand for golfing services. Growing demand is a good thing for any business. The question is, however, how to best serve these customers and their varying demands. The answer to this question is the key to securing the future of your club in a competitive market.
