"No news is good news" for the golf industry in September, as the last full-season month for the northern climes showed a flat 0.4% increase in Golf Playable Hours (GPH) for the total U.S, according to Pellucid. That also maintained the "not bad" trend for GPH Year-to-Date (YtD) weather impact at dead even (0.0 percent) through September vs. the same period in 2008.
Beneath the national calm, the YtD regional breadth ratio (measured as the number of regions up compared against the number of regions down) also held steady and remains positive at 1.4:1. This figure is comprised of 17 regions up vs. 12 down with the remaining 16 weather-based regions recording neutral results (+/-2 percent with all 45 regions "in play"). Leading the "weather favorable" key rounds-contribution regions for the September YtD period are Mid-continental North and Ohio Valley North with GPH favorability of positive 5 percent. On the "weather challenged" side of the ledger, the only key rounds-contribution region in the red in excess of 5 percent YtD is Pennsylvania East/N.J./N.Y.
Looking back at the previously-reported weather results vs. the industry alliance rounds played, the August Percent Utilization Rate (UR) remained stubbornly flat at just under 50 percent with a negligible gain of 0.4 points vs. the 2008 national annual benchmark (comprised of a 1 percent drop in rounds demand against a 2 percent decrease in GPH).
Pellucid's Market-Level Weather Impact tracking identifies the biggest gainers and losers in Percent Utilization Rate for 61 markets/states/state groups. The market-level breadth shows seven geographies up compared to 11 down and 43 in the neutral zone or a slightly negative market-level breadth ratio of 1:1.6. Leading the "utilization winners" are San Antonio and Houston with YtD Percent Utilization gains of being up 4 points while Hawaii continues to top the "utilization losers" list at being down 5 points.
The weather has fortunately not been a big negative factor in the 2009 season,” Pellucid President Jim Koppenhaver says. “Many markets are seeing only modest swings in weather for the season compared to last year, which means the rounds and revenue results are more focused this year on ‘controllable’ factors. For the most part, however, among our client base we're seeing challenges in maintaining rounds with continued pressure on rates which is stymieing revenue growth.
“Consistent with our client trends, PGA PerformanceTrak's August YtD Executive Summary continues to show a 5 percent decline in Median Golf Fee Revenue driven by a 3 percent decrease in Median Golf Fee Revenue per Round (rate) and a 2 percent decrease in rounds (volume). Especially hard hit on both volume and rate is the Resort sector down 15 percent and 8 percent respectively for the YtD period.”