Yield management consists of two strategic levers: duration control and demand-based pricing . Golf courses have been willing to try managing duration but have been reluctant to apply demand-based pricing because of fears of possible customer dissatisfaction. While golf courses do us demand-based pricing when offering higher prices on weekends and promotions such as twilight specials and league play, they have been loathe to vary price by time of day, time of booking or condition of play. Golf courses operators may well have support for their fears in the fairness literature. Researches have found that customers will refuse to patronize companies perceived as unfair. If demand-based pricing in courses is viewed as unfair by golfers, the golf course may suffer a loss of business.
Table of Contents
1. INTRODUCTION
2. A “4-C” STRATEGY FOR YIELD MANAGEMENT
3. YIELD MANAGEMENT FOR GOLF - COURSES
3.1. Problem Background
3.2. Typology of Yield Management
3.3. Concept for Golf- Courses
4. GOLF – COURSE DURATION MANAGEMENT
5. SUMMARY AND CONCLUSION
Objectives and Topics
This paper examines the application of yield management strategies within the golf industry to optimize revenue through duration control and demand-based pricing. It explores how golf course operators can effectively balance customer demand with capacity constraints while maintaining perceived fairness.
- Strategic implementation of the "4-C" model: calendar, clock, capacity, and cost.
- Taxonomy of yield management across different service industries.
- Methods for managing the uncertainty of round duration in golf.
- Techniques for balancing peak and off-peak demand through rate fences.
- Tactical approaches for improving forecasting and reservation management.
Excerpt from the Book
3.3. Concept for Golf- Courses
The core concept of revenue per unit of time can apply equally to golf course operation as to other capacity constrained operation. For a golf course, the yield management concept is revenue per available tee time. The key inventory measurement is available tee time, which is in turn, driven by the length of time available on the golf course. To activate a yield management strategy, a golf course manager has available the following strategic levers: reducing the uncertainty of arrival, redefining the concept of the duration of a golf match, reducing the uncertain of that duration, and reducing the tee time interval. Reducing either the uncertainty of arrival or of the duration of a round involves tactics that can be labeled either internal or external. Internal tactics are those that are within the operation and are essentially invisible to customers, while external measures involve customers’ actions as well. By defining the unit of sale as an available tee time, a manager can first establish when demand is strong, when it is moderate, and when it is weak. Armed with that knowledge, a manager can then set strategies to manage demand at each level. The manager may wish to shift demand from string times (when, presumably, people are turned away) to weaker times, when more customers can be accommodated.
Summary of Chapters
1. INTRODUCTION: Outlines the fundamental concepts of yield management and its growing importance as a strategy for revenue growth in the golf industry.
2. A “4-C” STRATEGY FOR YIELD MANAGEMENT: Details the four essential tactical factors—calendar, clock, capacity, and cost—required to effectively execute a yield management strategy.
3. YIELD MANAGEMENT FOR GOLF - COURSES: Provides the problem background, establishes a typology for industry-specific yield management, and introduces the operational concept for golf courses.
4. GOLF – COURSE DURATION MANAGEMENT: Focuses on the core challenge of unpredictable round duration and suggests both internal and external tactics to mitigate this uncertainty.
5. SUMMARY AND CONCLUSION: Recaps the importance of rate fences and transparency in pricing to ensure that yield management practices do not negatively impact customer loyalty.
Keywords
Yield Management, 4-C Strategy, Golf Industry, Duration Control, Demand-based Pricing, Tee Time Management, Revenue Management, Rate Fences, Capacity Management, Service Tactics, Pricing Structure, Customer Fairness.
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on adapting revenue management strategies, specifically yield management, to the unique operational characteristics of the golf course industry.
What are the main thematic areas discussed?
The key themes include duration control, the "4-C" tactical strategy, demand-based pricing, and the implementation of rate fences to maintain customer satisfaction.
What is the core objective of the research?
The primary objective is to demonstrate how golf course managers can use strategic levers—such as tee time interval reduction and demand shifting—to increase profitability.
Which scientific methods are analyzed?
The paper analyzes service industry revenue strategies, specifically comparing the characteristics of different industries regarding duration control and pricing variability.
What does the main body cover?
The main body covers the strategic "4-C" framework, the specific application of yield management to golf inventory, and detailed methods for duration management on the course.
What are the characterizing keywords of the work?
Essential keywords include Yield Management, 4-C Strategy, Duration Control, Demand-based Pricing, and Rate Fences.
Why is duration control so difficult for golf courses?
Unlike fixed-duration services like movies, a golf round is characterized by "unpredictable duration," which complicates the ability to manage tee time intervals effectively.
How do rate fences help maintain fairness?
Rate fences provide logical and transparent rules for price segmentation, which helps customers understand why different price points exist, thereby reducing the perception of unfairness.
- Citation du texte
- Beate Pehlchen (Auteur), 2003, Applying Yield Management to the Golf-Course Industry, Munich, GRIN Verlag, https://www.grin.com/document/18117
