The Pellucid Perspective - July 2024 - 4

STEALTH TRENDS
The above numbers are a single year adjustment which makes
the noted changes even more important. With the overall US
population growth rate at 0.7% annually, these numbers merely
underscore that golfers are generally more affluent than the US
population as a whole and the players we are attracting continue
to be higher income people.
We're now halfway through our 5th post-Covid season and
we continue to see strength in revenues and course utilization.
Poor weather in May and June (down -5% and -9% respectively)
as we enter the peak demand season has failed to dampen
the enthusiasm for golf as course utilization has jumped in both
months. Our Golf Market Research Center (GMRC) participants
are still reporting revenue gains in spite of any weatherrelated
rounds declines.
Even better, the $100,000+ income brackets increased by
double digits between the 2010 and 2020 Census while the
population only increased 7%. The Golf Local Market Analyzer
(GLMA) reports, using the new 2020 Census data, are projecting
similar growth from 2022 - 2027. It should be noted that
" of color " households are sharing in the exponential growth in
the higher income brackets underscoring the potential value of
continued diversity efforts.
We're not going to get into the politics of the increasing chasm
between low and high income consumers. Instead, we want to
emphasize that golf remains an activity concentrated in higher
income brackets and we need to direct our efforts accordingly.
We also have to recognize that the addition of new course supply
and the renovation of existing courses is more costly than ever -
which will make it even harder to keep golf " affordable " .
" This {premiumization} has long been the strategy of
Procter&Gamble, which tends to occupy the premium tier of the
categories in which it operates, from Gillette razors to Bounty paper
towels " . WSJ, July 2, 2024. P&G competitor Kimberly Clark
CEO, Michael Hsu echoed this approach and added a comment
on " value " - " I think the growth driver for us over the long term is
by making products better, premiumizing, elevating our categories.
But we want to serve the value-oriented consumer as well, too. "
As we have noted previously, the improved golf course operating
results over the last 4 ½ years have been driven by both
improved rounds demand and the ability to raise prices. As Jim
Koppenhaver points out in both his opinion article and Market
Focus section this month - all markets are not created equal. This
also means that maintaining and measuring success is not a onesize-fits-all
playbook.
After 20 years of not heading in that direction, I drove
through the beautiful " driftless " area of Wisconsin not just once
but twice in late June. On the way, The Oaks outside Madison
was its usual busy self on a Friday and 2 Sundays. Odana, the
busiest of Madison's municipal courses, was jammed (probably
slow too with 3 groups on one of the Par 3s). Forty-five minutes
Bally's Golf Links at Ferry Point
Bronx, New York
D ISC O VER
THE TROON APPROACH
Troon's collection of daily-fee, resort, private, and semi-private
facilities create memorable member and guest experiences at
renowned clubs around the world. By utilizing the professional
expertise of our
team and collaborating with our clients, we
reinvigorate golf courses and club communities, making them
relevant, healthy, and sustainable. Visit TheTroonApproach.com to
learn more about who we are and why our clients partner with us.
Benedetta Moresco
Team Troon
4 The Pellucid PersPecTive
July 2024
https://www.troon.com/management-services/
The Pellucid Perspective - July 2024

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