[Jeff Schley]

We recall the early days of the pandemic 2020 until the summer, when some GB/I (not sure if Ireland courses appealed?) clubs reached out for help. Brora / Cavendish etc. came up with various schemes to attempt to keep them afloat via overseas/lifetime memberships. Their plea was met with an abundance of support.

So we saw record rounds/memberships afterwards and surprised many with the results for golf. So where do they stand now? Rosters full, quid in the bank, fees raised?  Curious to know their standing now from those in the know as it appeared golfers around the world chipped in generously, including many on GCA I know.

[Sean_A]

I read the situation as generally very healthy at the moment. Memberships doing well, good deals to be had, especially in Scotland, amid rising visitor fees.

I think we are on the cusp of green fees jumping significantly over the next few years. I look for this trend to continue with new style club managers with a profit mindset slowly filling club manager posts. Eventually, I think less times will be available to visitors and that more clubs will form more tightly connected reciprocal arrangements as a member benefit.

Ciao

[Ally Mcintosh]

Sean,


Do you really think green fees will rise significantly in the next few years? The last few have been faintly ridiculous. I cannot believe the rack-rate of tier 2 & 3 courses around GB&I at present (leave alone the tier 1 courses which are out of most people’s range more than once or twice a year).


If they continue to rise, then the golf industry is very much banking on a membership model rather than casual play.

[Sean_A]

Sean,


Do you really think green fees will rise significantly in the next few years? The last few have been faintly ridiculous. I cannot believe the rack-rate of tier 2 & 3 courses around GB&I at present (leave alone the tier 1 courses which are out of most people’s range more than once or twice a year).


If they continue to rise, then the golf industry is very much banking on a membership model rather than casual play.

I do Ally. I am watching it happen for any club with a remotely positive reputation. Sure, there are still bargains to be had, but fewer each year. So many clubs have have jacked up guest fees and reduced partially eliminated the deals such as Co cards. It's to the point now where a guest fee these days is as much as the visitor fee was not all that many years ago.

People seem willing to pay the fees.

Ciao

[Tony_Muldoon]

Most Clubs seem very bullish about the future, despite the Memberships in many cases now being "Full" and accounts healthier than they have been for some years, dues are being increased by much more than inflation. Ditto initiation fees (something not seen for many years) and visitors Green Fees. One of my Clubs has now closed its waiting list to new applicants.

NB this is despite a lack of overseas travellers. Must be a bit of a shock to some on here who think the Dollar still rules the world!
That aside(sic), more money will be coming in from all over the world to the top tier, possibly next year. 


The Stock Market is a bit like that now, we've had a good run and even last year saw record returns that appear to defy "logic". BUT will all those new members re-join now they have the other alternatives they enjoyed in Pre Covid times (this may take a year or so for travel to re-enter the list of other options of what to do with your time and money.   So just like the Stock Market it comes down to whether you think a time of reckoning is coming? Stock prices vary but even in a 'crash' I suspect it will be along time before mid and top tier clubs reduce their Green Fees - they have built their reputations on them. 


I just hope that the current bullishness does not lead to a rush to borrow more money to spend on ....the clubhouse and facilities.

[Thomas Dai]

Some very valid points above. There’s a side of the coin that maybe hasn’t quite hit home yet.
The supply, availability, demand and prices for course (and other) maintenance supplies, materials and equipment.
Prices have been increasing and increases in operating costs have to be passed on to members, visitors, pay-n-pay golfers sometime.
Atb

[Adrian_Stiff]

There are some very different scenarios at the moment. Uk perspective is something like.


Golf as a game is very rosey in the UK. The average person is playing 50% more than he used too. Golf courses have a finite number of rounds that can be played and pretty much every golf course is nearing capacity.


So..... If a member is averaging 50% more it means membership levels cant get back up to the 900 level that could be achieved, it means you seal at 600. Should members pay more? If you were taking green fees or operated at a level where your membership pay a smaller membership and then a round fee you will do okay.


Clubs that just serve an all you can eat package and have members playing 100 rounds a year will of course not do so well out of the boom, after all the member has PAID so you get no more money. These clubs are doing okay but they are not banking lots.


The extra bar spend helps but often these areas are franchised or the club absorb the run costs to support the steward. Many clubs lose more than £100,000 on their clubhouse but it depends how you do your accounting.


Fill a golf course with green fee payers, boys on tour, groups and you see the best returns from being full. Some of these clubs will make profits of £1,000,000 this year.


A member pays £1200 a year for his dues and might play 100 times versus a visiting 4 ball who pay £240 for a single game.


Best joy I think is a mixture.

[Steve Lapper]

Gents,




   As a multi-club owner-operator here across the pond from you, I have a keen interest in the future of the business. Surely, COVID-19 was an absolute boon for golf, the game, and it's business. Like you, most well-located private clubs are back on much stronger footing with swelling memberships. Initiation and dues #'s are increasing wherever there is residual demand and/or pricing elasticity. You all are near unanimous in reflecting a bullishness not commonly found in the pre-pandemic environment.


  This said, we here are starting to see some waning in demand across the board at our public (semi-private) public sectors. Round counts are flat to down and softening a bit across the country. As the pandemic recedes (and clearly the Delta variant's virulency is hurting this ) will the interest in golf retreat and revert to the multi-decade mean?


   Will the rise in dues, visitor fees and expectations put the expansionary trend in danger? I for one fear that once the pent-up travel demand is met (probably not until late 2022), UK clubs might face a distinct slowdown in US visitors? I hope not, but are wondering what your thoughts are?

[Sean_A]

Steve


I believe the demand for membership and visitor golf will slow down by Christmas next year. Likely won't feel the membership effect for a few years later when waiting lists are cleared. But clubs should be able to see the trends in visitor golf to guess what will happen with membership trends.


Ciao

[Niall C]

Re visitor numbers and green fees, I agree with the point Ally is making and that is the strong growth/upsurge in green fees has largely already happened over the last few years. There may be a few second tier courses playing catch up but I think the big pay and plays and the Open rota and such like have already hiked it to the max.

Those are the kinds of courses that get the strongest dollar input and therefore rely on US visitors for the profit margin. That's not to say of course that US visitors make up the bulk of the visitor spend, on the contrary, it's in the single figure percentages for the last figures I saw, but the difference is that the Yanks tend to spend all their money on the big courses (Mayhugh, Warne and co excepted).

Where I agree with Sean is the move of the lower tier clubs towards reciprocal deals and more member focused policy rather than chasing visitor greenfees. That swings things back in favour of being a club member as opposed to being a nomad.

Niall

[James Reader]

Are any clubs starting to struggle with the staffing issues that are affecting the hospitality sector?  Having already reduced the hours last week, the Links Trust has just announced the closure of the St Andrews clubhouses with immediate effect because they can’t find the staff to keep them open!

[Marty Bonnar]

Are any clubs starting to struggle with the staffing issues that are affecting the hospitality sector?  Having already reduced the hours last week, the Links Trust has just announced the closure of the St Andrews clubhouses with immediate effect because they can’t find the staff to keep them open!

Thank you, Brexit.

[Thomas Dai]

“To every action there is an equal and opposite reaction.”?
Atb

[Steve Lapper]

Are any clubs starting to struggle with the staffing issues that are affecting the hospitality sector?  Having already reduced the hours last week, the Links Trust has just announced the closure of the St Andrews clubhouses with immediate effect because they can’t find the staff to keep them open!

Thank you, Brexit.

Marty,


   FWIW....clubs here in North America are having great difficulty finding enough staff to work, especially outside the summer season. It's a larger problem than what can be blamed on Brexit.

[Brian_Ewen]

Club not far from me, had their best ever year financially for 2020.


Mainly due to Clubhouse etc. being closed.

[Niall C]

Are any clubs starting to struggle with the staffing issues that are affecting the hospitality sector?  Having already reduced the hours last week, the Links Trust has just announced the closure of the St Andrews clubhouses with immediate effect because they can’t find the staff to keep them open!

Thank you, Brexit.

Sorry, you'll need to explain that one to me. Did the Links Trust only hire "foreigners" ?


Niall

[Marty Bonnar]

Are any clubs starting to struggle with the staffing issues that are affecting the hospitality sector?  Having already reduced the hours last week, the Links Trust has just announced the closure of the St Andrews clubhouses with immediate effect because they can’t find the staff to keep them open!

Thank you, Brexit.

Sorry, you'll need to explain that one to me. Did the Links Trust only hire "foreigners" ?


Niall

Not ‘only’, but a great many and bloody good they were too.

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