The Challenge To Increase Yield is Met
In February of 2016, Mosaic Clubs purchased Fox Creek Golf Club and Legacy Golf Links, two very busy executive golf courses located side by side in Atlanta, Georgia.
Fox Creek is a par 62 course, while Legacy is a par 58. Both are great venues for the beginning golfer and the golfer who is pressed for time. And, both have the busiest driving ranges in the Atlanta area.
Each of the clubs was offering very basic rates. Legacy was running two rates, each day, throughout the week. Fox Creek was managing the club similarly, except it separated the weekdays versus weekends. The opportunity quickly identified was the chance to increase the yield per player and thus the overall revenue. We decided to implement a rate structure that offered different rates on weekdays and weekends and depending on the time of the day – a multi-layered model. This was a big change for the golfer and 2016 ended up with a combined yield per person of that increase $1.89 per round, over 70,000 total rounds.
In 2017, Mosaic kept the same strategy, except we analyzed the utilization percentage even more closely. Weekend AM rates were increased, as player bookings were very high. Midday weekday rates were decreased, as play was very slow. With that, the golf courses no longer had the typical golf course rate structure that decreased as a day unfolded. The year ended with an additional yield increase of $2.14.
We took the yield obsession even further in 2018. What started in 2016 with a new set of rates went to full dynamic pricing in 2018. Dynamic pricing, in the most laymen of comparisons, can be associated with how airlines and hotels operate. The customer never sees a standard rate. The customer never sees a discount. Prices are based on demand, utilization and time of booking. Guests now pay different rates even though they may have the same tee time. In 2018, Fox Creek and Legacy applied the same theory. Through August, our yield has risen an additional $1.95 this year.
That’s $5.98 in additional yield per player. Over 70,000 rounds, that equates to $418,600 of new revenue.
It shows the power of professional tee sheet management, and of professional management in general.
August 6, 2018
June 22, 2018