That said, it shouldn't come as any surprise that according to a recent report from the Federal Reserve, Americans 55 and older possess 70% of household wealth, up from 50% in 1989. Boomers also account for 45% of US personal spending, up from 29% three decades ago, according to Moody’s Analytics.
As stated previously, this portends an ominous future not only for destination golf resort bookings and travel once the majority of "boomers" and older Gen X'ers have moved on, but resort and private golf club membership in general. These places should be stashing cash away now in their rainy day fund while the good times last, as they're likely going to need to tap into it sooner rather than later.
I will reiterate my thinking here again as I'm very confused about much of this thread...
In the high season, right now, I could theoretically book a round at Bandon for $400 and at Sand Valley for $300 without even staying at the resorts. That is pennies compared to a private membership. It's even pennies compared to Pebble Beach, which is $1625,
minimum, for the round and the required night stay.
It is very, very obvious to me that these courses are specifically providing options for more frugal (read: younger) players.
Yes, boomers and gen x have more capital, but these resorts do not
require high net worths. Equity clubs
require high net worths. Equity clubs should be extremely concerned about cash flow shocks in the relatively near future as many of their members (likely a majority) are all on the same actuarial table and younger folks might balk at the costs involved.
These resorts, however, allow for a huge diversity of players. They allow for a kid making a starting salary to play once a year if they're willing to drive 8 hours and stay in a motel a half-hour away. They
also allow for the successful business owner to play a different course every day for a week at $500+ per night. Their business model as I see it, and as Mike Keiser seems to be fairly open about, is to capture Scottish/Irish club visitor fee income that American clubs don't offer.
I know less about Streamsong and Cabot, and I don't understand the Florida market at all (it seems fairly saturated), but I understand that I'm being marketed to, constantly, by destination resort courses. Every single golf blogger/youtuber I follow ends up at every new course that opens up. Pretty much all my golf friends have heard the name "Sedge Valley" even though it's only been open for a week.