The Pellucid Perspective - April 2024 - 9

impacted. More importantly, the programs such as Klarna and
Afterpay involve " soft checks " that do not impact their credit
score. Longer term Affirm and Synchrony do require real credit
checks, but the interest rates can be lower than those on credit
card balances when the retailer is promoting sales through interest
" buy downs " .
If we pay attention,we know that the Millenial shoppers are
looking for installment payment opportunities and are using
these new fintech options. The challenge is looking for ways
to accommodate these smart, informed shoppers as we try to
attract and retain them as golfers. Most major manufacturers
have " rental club " programs that provide additional discounts
from wholesale.We can use that in two
ways - first to provide discounted rentals
for golf course use (paid greens fees)
to those that have completed an introductory
clinic. Second, the rental clubs
can be offered with good discounts at
the end of the season to recover the
cost to buy them. John Deere has had
a similar profitable and self-liquidating
program for its compact diesel tractors
for years.
In its promotional material for Welgolf
have in common beyond record
rounds and ski area visits in 2023 is that
both industries are pushing the limits of
capacity - especially at facilities located
in or near large urban markets. Conversely,
even with the pandemic boost,
they also share participation that is still
below their respective peak levels - golf
had 30M in 2000 and skiing had 15.5M
in 1979 compared to 24M and 11.6M
today. Further, participation is increasingly
concentrated in high income
brackets for both.
As to The Economist's article sugWe
are encouraged that
the golf industry is
gesting that the European ski model
dominated by municipal lifts would help
sustain participation; the LA, Chicago
and New York public golf markets are
already primarily Municipal. The recent
problems with tee time reservations in
LA just might be a canary in the coal
mine. As we mentioned earlier, the emergence
of tee time concierge services will
add a cost factor and pose customer loyalty
challenges.
The Mountain Collective program is
recognizing the historical
data that tells us the
most fertile ground for
attracting new golfers is in
the 25-40 Age Group.
every one of the 470 ski areas in the US
offers introductory clinics for all age
levels. As a former ski instructor, I can
tell you that these clinics are designed
to be as affordable as possible. As Pellucid
outlined in our detailed comparison
of Skiing, Tennis and Golf several
years ago; it's important to note that
" 70% of all new skis sold annually go to
rental enterprises " . (July, 2014 Pellucid
Perspective and July, 2014 Outside the
Ropes for those of you with Pellucid
Memberships).
We are encouraged that the golf income2Golf,
the NGF refers us to the
ski industry and the fact that virtually
as 80% and rarely have seen less that 50%. Many courses went to
" weekday " and 7-Day options, but the discount rates remained
high and the current more flexible work schedules are shifting dayof-week
play patterns as well. The Epic concept adjustment will
really not be a solution for a course where play is basically local.
On the other hand, any decision to eliminate season passes
should be accompanied by a well designed " loyalty " program(s).
Not only will you have the season pass usage to fill; but the current
scarcity of tee times in many markets have more golfers searching
multiple courses or using concierge services to find times at
your competition. A good example of this would be giving preferred
tee time access to anyone buying
a 10 round package. We have one client
selling preferred access at rack rate and
generating significant revenue - similar
to Southwest Airline's major revenue
generating early boarding program.
Another major point that skiing and
attracting new golfers is in the 25 - 40 Age Group. It is also the
Age that many kids exposed to golf through Junior Programs
return after their detours into high school, college and team
competitors, but we all share in the larger competition for recreational
time and money.
If we were talking to Michael Berry today, it's likely that we
" club " sports. Providing more access to affordable instruction
will only serve to help with faster skill development - we know
that people respond to improvement and will stay involved
when they get better.
It is also clear, however, is that we will have to adjust our
methods for getting these new golfers equipped for staying engaged.
This will entail rethinking " rental programs " and probably
getting familiar with some of these new fintech options
that the Millenials are already embracing.
areas in 12 states from Coast to Coast.
n
would share the same thoughts we had a decade ago - maintaining
and/or expanding the overall combination of bodies and visits
is at the core of any chance for future success. Right now, we are
on the top of the mountain - how we navigate the moguls of access
and pricing will determine whether we get to the bottom of
" Tourist Trap " in one piece.
Editor's Note: Stuart is a retired ski instructor and has visited ski
n
interesting. It's both a concierge service
and provides a pass program for a mix
of ski areas. In one sense, these properties
compete with each other; but they
also needed to provide an alternative to
the Epic and Ikon pass programs. It is
worth watching as an example of what
Harry Ipema (Fore Reservations) used
to call " coopetition " . Besides developing
the most widely adopted Tee Sheet/POS
platform in golf; he was a firm believer
in the concept that golf courses might be
The Pellucid PersPecTive
The Pellucid PersPecTive
9
9
dustry is recognizing the historical data
that tells us the most fertile ground for
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The Pellucid Perspective - April 2024

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