Mike Loustalot. Multi-Channel Distribution, Revenue Management and Customer-Centric Pricing in the...

Mike Loustalot

Multi-Channel Distribution, Revenue Management and Customer-Centric Pricing

in the 21st Century Golf Business Model

the right pricethe right time

the right channelthe right customer

Supply

Demand

The Future

Golfer Course

Golfer Course

3rd Party Marketer

Launched in 2001

Acquired by Golf Channel in 2008

60 markets • 2,500 courses 750m active bookers

82mm HH • 15mm viewersleading brand in golf

demanddemand

the golfer

Value, value, value

Seeks positive experience

Choices, choices, choices

Convenience

Less, less, less

Travels 2-3x per year for

golf

Time constraints

Seeks online solutions

supplysupply

the operator

Single facility operator

Single facility operator

Employees Turf management

Capital and equipment Accounting

POS...

Employees Turf management

Capital and equipment Accounting

POS...

Electronic tee sheets

Website and email Pricing

wizard Revenue growth

Marketing services

...

Electronic tee sheets

Website and email Pricing

wizard Revenue growth

Marketing services

...

Overbuilt capacityOverbuilt capacity

Equity challenged

Equity challenged

Pricing uncertainty

Pricing uncertainty

Weak demand

Weak demand

Golfer Course

3rd Party

AirlinesAirlines

$130B$130B

AirlinesAirlines

65%65%Booked onlineBooked online

11%11%Tee TimesTee Times

AirlinesAirlines

65%65%11%11%

Booked onlineBooked online

our challenge?our challenge?

11%

65%

Move the adoption rateMove the adoption rate

Mike’s crystal ball

it’s happened it’s happened everywhere elseeverywhere else

it’s inevitableit’s inevitable

what to do?what to do?

Internet Distribution Plan

Got website?

Tee times online

3rd party distribution source

Build database of golfers and market to them

1

Revenue Management Strategy

Know your market

Know your cost structure

Use pricing tools to manage inventory

Market, market, market

2