The Pellucid Perspective - August 2017 - 14

MARKET FOCUS

way to grow rounds demand in excess of 1% annually.
The average facility has throughput of roughly 29K rds/yr,
lower than the national average before factoring in climate and
daylight influences. The more accurate measure is the market's
54% Utilization Rate which is within striking distance of the
Top 25 US Golf Markets' average (56%). This means that, after factoring in the handicap of a less-than-12-month season,
the market's average golf "factory" runs at similar throughput vs.
its Top 25 US Golf Markets peer group. On the annual Golf
Fees Revenue productivity side, the market generates just under
$1.4M per public regulation-length EHE, which is well above
the Top 25 Markets average. After factoring that for weather influence, the market's Greens Fee Revenue per Available Round
(RevpAR = Greens Fee Revenue/Available (Capacity) Rounds)
registers at $25, an even larger upside vs. the Top 25 Markets' average of $19. (Remember however that all the revenue figures are
based on calculations off the highest Weekend Green Fee and
don't factor in the mix of weekend/weekday play or the effect of
discounting present in the market so actual mileage across markets will vary). As a final new measure for the Top 25, the Golf
Fee Profit-per-Available Round estimate (designed to equalize
the equation when comparing high cost-of-living markets to
more reasonable ones) is $10 which is just above the national av-

erage of $9 (so higher maintenance offsets some of the RevpAR
advantage). For more detail on what this means and how that's
calculated, see Jim's article in the October '14 Perspective edition
(or send us an email at jimk@pellucidcorp.com and we'll fill in
the blanks).
In summary, the Boston CBSA has positive "comps" in the
golfer base, relative parity in throughput and advantages in
Revenue and Profit (after adjusting for weather impact). On
the other side of the market health ledger, the market is challenged in generating demand and the supply overhang is a serious challenge that won't get corrected in the near-term short
of a miracle (like wining another World Series?). So, for the
average operator the task is similar to the industry in general
and most other markets; either steal share from competitors
in the competition for existing golfers and their rounds or do
something unique and innovative that either gets your existing golfers to play that incremental round or two or create new
golfers from among the "former" or "never" pool in the local
population. None of these will be easy but the tools exist and
we've proven among our Sharper Edge Marketing clients that
with basic, consistent and targeted marketing efforts (primarily digital), you can accomplish and make progress on all three
fronts in any given season.
n

"Clear Solutions to
Golf 's Business Issues"

Visit our website and register for more information and free sample reports at www.pellucidcorp.com.
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(See Hispanic Golf on page 14)

14 The Pellucid PersPecTive

August 2017

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Table of Contents for the Digital Edition of The Pellucid Perspective - August 2017