Charleston, S.C. - The National Golf Course Owners Association has begun a comprehensive initiative to measure the game’s key financial benchmarks. The program provides accurate and consistent industry measurements to help golf course owners and operators evaluate the performance of their facilities, compare their results to competitors and operate more efficiently.
Based on information provided by participating owners and operators, the reports measure participation, revenues and course utilization on a monthly and rolling basis. The information will be confidential to participating owners and operators, who can use it for operational purposes and financing needs (whether buying or selling), or when providing information to analysts and media.
“A timely, accurate and unbiased set of industry metrics helps our members and other key stakeholders make informed operational, marketing and purchasing decisions,” says Mike Hughes, executive director of the NGCOA. “This is the type of information decision makers in other industries rely on to understand and analyze trends. We believe these financial benchmarks quickly will become one of the most important management tools in our industry.”
The NGCOA is working with Golf Datatech, a golf industry market research firm, to collect and report the financial benchmarks.
The decision to launch the program nationally follows a five-month pilot study in Atlanta, Las Vegas and Phoenix earlier this year.
“These are the right metrics reported in an easy-to-understand format,” says Hud Hinton, president and c.o.o. of Troon Golf and a pilot program participant. “Before now, information hasn’t been gathered scientifically, and credibility was an issue. There’s no substitute for ongoing information in a standardized format that helps you operate more intelligently.”
“Having access to a broad base of performance measurements enables us to manage our assets more effectively, opens our eyes to best practices throughout the industry and encourages us to establish more targeted goals,” says Henry DeLozier, v.p. of golf for Pulte Homes, which owns 23 golf courses, and pilot program participant.
The reports, which include information about rounds played, total round revenue, revenue per utilized round and revenue per available tee time, are available to every U.S. city for members and nonmembers. They can be a valuable tool for small courses and large management companies.
“We’ve needed this information for a long time,” says Bert Coghill, owner of Silver Lake Country Club in Orland Park, Ill. “We have innumerable challenges, and this data will help me make more informed decisions as a course owner.”
Program participants receive information that allows them to compare their facilities’ performance against their overall market. Once a critical mass of owners and operators in a given market decides to participate in the program, the reports can be customized to include competitive data.
“If you’re not mindful of the competitive marketplace, you’re continuing to participate in a one-horse race,” DeLozier says.
Because the numbers reported in the Financial Benchmarks Program come directly from owners, credibility isn’t an issue, Hinton says.
“Although individual courses will face competitive demands for similar information, we feel strongly that the resulting reporting belongs in the hands of the owners and operators who will ultimately make the key decisions on behalf of their facilities.”
For more information, visit www.ngcoa.org/benchmark.