The Pellucid Perspective - September 2011 - (Page 11)

rules would say that they returned to golf playable hours), it’s a better tool than saying that golf stopped completely for every state within a 200 mile radius of Irene’s wrath. Atlanta and Chicago are also good market-level cases where weather adds an important dimension to understanding performance. As mentioned above, Atlanta operators are probably feeling pretty good about their 2% rounds gain, but the weather in fact shows they’re somewhat squandering Mother Nature’s benevolence thus far this year. In Chicago, we’re down 11% on rounds, which has everyone rightfully concerned but, in light of an 18% drop in GPH YtD, we’re working pretty efficiently within the confines of what we’ve been given to work with.” On the facility golf fees (GF) revenue side via the July PGA PerformanceTrak numbers, the YtD period shows a 1% decline comprised of a 1% decrease in rounds and a 4% increase in rate at the All Facility level (we’re getting closer, we’ve now got agreement in the positive/negative balance but a 4% increase in rate coupled with a 1% decrease in volume (rounds) should yield a 3% decline in revenue in most math books). Coupled with the YtD change in GPH of -4%, this produces a positive differential of 2 points, suggesting that, according to PGA PerformanceTrak, all of the national-level GF revenue unfavorability through July can be explained by poorer weather. n Facility Gross Revenue by Department Jul 2011 8% 6% 4% 2% 0% –2% –4% –6% –8% –10% Revenue ___________________________________________ 6% ___________________________________________ 4% ___________________________________________ 3% ___________________________________________ 0% 1% ___________________________________________ 0% ___________________________________________ –1% ___________________________________________ n Curr Month ___________________________________________ n Curr YtD ___________________________________________ –9% ___________________________________________ Total Revenue Golf Fee F&B Revenue Merch. Revenue p Looking at gross revenue by major departments, July was flat in Total Revenue with gains in Merchandising and Golf Fee revenue offsetting a significant drop in F&B for the month compared to year ago (YA). The YtD revenue remained at +1% driven exclusively by strength in Merchandising which is up 6% vs. YA. Whatever they’re doing in the Pro Shops to move inventory this season, it seems to be working and picked up steam in July (let’s just hope it’s not early end-of-season clearance however, which has significantly reduced margin implications). All Facility Gross Revenue-Rounds-Rate Jul 2011 Curr Month Curr YtD Golf Fee Revenue-Rounds-Rate by Facility Type Jul 2011 YtD 25% ___________________________________________ n Fac GF Rev n Rounds n Rate (Rev/Rd) 20% ___________________________________________ 15% ___________________________________________ 10% ___________________________________________ 4% 5% ___________________________________________ 3% 2% 2% 0% ___________________________________________ 0% 0% 0% 7% 25% ___________________________________________ n Fac Gross Rev 20% ___________________________________________ 15% ___________________________________________ n Rate (Rev/Rd) 10% ___________________________________________ 3% 5% ___________________________________________ 1% 0% 0% ___________________________________________ 0% –2% –5% ___________________________________________ 0% Source: PGA Performance Trak All Fac. Types Private Daily Fee Mun/ Mil/Univ Resort n Rounds –1% –1% –1% –2% –3% –5% ___________________________________________ –4% –5% ___________________________________________ –10% Source: PGA Performance Trak p Looking at facility gross revenue, rounds and rate as reported by PerformanceTrak, July was flat in gross revenue vs. year ago driven by no increase in rounds and a fractional increase in rate per round played. For the Year-to-Date period, facility gross revenue holds steady at +1%, the result of a 2% decrease in rounds neutralized by a 3% increase in rate. All things considered, we prefer to see a tradeoff in rounds for commensurately higher rates rather than chasing more rounds at lower rates, so the current trend isn’t a bad tradeoff. In a rare moment of optimistic thinking, the slightly higher rate figure and the small rounds loss may mean that a majority of operators are taking the initial steps to wean themselves and their markets off the discount habit, or that the consumer is showing some willingness to play at rate card rate (possible, but doubtful). www.PellucidcorP.com p Looking at Golf Fees Revenue performance by facility type and contributory factors (rounds vs. rate) for the Jul YtD period, the 1% deficit in revenue is driven by a 5% decline in the Muni/ Mil/Univ segment and offset by the 7% increase in Resorts. The 2% decline in rounds was driven by declines of 4% and 3% in Muni/Mil/Univ and Daily Fee respectively. The 2% increase in rate was driven by the Resort (+4%) and Daily Fee (+2%) segments. Looking at the diagnostic measures within each facility type, Private is basically flat across all measures. Daily Fee improved slightly to flat in GF revenue driven by a 3% rounds decrease offset by a 2% increase in rate. Muni/Mil/Univ saw an improvement in rate in July to get back to even, so now their primary problem is a 4% rounds decline. Finally, Resort maintained a 7% gain fueled by balanced increases in both rounds and rate. The Pellucid PersPecTive 11 Source: PGA Performance Trak http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - September 2011

The Pellucid Perspective - September 2011
Contents
The China syndrome
Shift happens: The impact of Hispanic growth on local golf markets
Promoting rounds at rate card — a novel concept?
Promoting rounds at rate card — a novel concept?
There’s golf in them thar’ (sand) hills
August weather impact, July utilization
Seattle, WA Core Business Statistical Area (CBSA)
Seattle, WA Core Business Statistical Area (CBSA)
The long and the short of it

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