As many international golf courses move from “social clubs” to performance-based businesses, four characteristics of U.S. style operations are defining their evolution. According to a panel of international golf experts assembled by Club Car, the westernization of international golf operations is being defined by:
- A management style driven by business goals vs. social objectives.
- Performance measurements used to gauge operational success.
- A focus on differentiating experiences as a competitive advantage.
- Course development associated with real estate and tourism.
“We see a social club atmosphere still prevailing in many places, but more and more investors are hoping to make a return on their golf investment and that is creating a whole new ballgame here,” said Lodewijk Klootwijk, c.e.o. of the European Golf Course Owners Association. “You see more structure to the businesses and more performance measurements in place.”
Klootwijk was joined on the panel by Hud Hinton, president and chief operating officer for Troon Golf, the world’s largest golf course management company; Henry DeLozier, a principal with Global Golf Advisors, an international consulting practice; Roberto Gorostiaga, sales and marketing director for Club Car’s European group; and Kevin Gates, director of sales and marketing for Club Car’s Asia/Pacific group.
Hinton said that Troon Golf employs many of the same metrics to measure performance at its international properties as it does in the U.S., but remains flexible in order to acknowledge local culture and tradition.
“You are still looking at guest and member satisfaction and overall profitability," Hinton said. "You are using the same kind of metrics used here, like labor costs as a percentage of revenue. We have flexibility to adapt our standards in customer high-touch areas – making caddies available or having tea houses on the course in parts of Asia, for example.”
While DeLozier noted that business basics for successful golf and club operations are universal for the most part, he added that it’s a mistake for operators to assume the U.S. golf business model will be a perfect fit in every international market.
“One can go into a market and work on the premise that 90 percent of your business model applies, but it may be the 10 percent that customers see in each local market that makes the difference,” DeLozier said. "Developers and financial planners should employ informed and sound business strategies that conform to local market social norms. It is foolish to assume that one business model applies to every locale.”
Gates emphasized the need for a “go global, act local’ strategy in the Asia/Pacific markets where he manages the Club Car business.
“The key to success in Asia in many respects is assimilation,” he said. “You may have cutting-edge and market-leading products, but unless your business and your people can assimilate into a diverse range of cultures you’re going to struggle. The product side of the business is often the easy part.”
Gorostiaga said the increasing popularity of golf cars in Europe, the Mediterranean and northern Africa is an example of operators trying to create differentiating experiences to increase play at their courses.
“Our market is getting more mature, not only in the tourist areas, but also in local markets where we see the second-tier as well as the top courses using buggies to improve their customers’ golf experience," Gorostiaga said.
Klootwijk said European golf courses still have a long way to go when it comes to operating performance-based businesses.
“We still have a lot to learn," he said. "We are trying to overcome our past, when there was a certain arrogance to many clubs, and adapt to our future. But we’re making progress.”