Mike Hughes CEO, National Golf Course Owners Association

Mike HughesCEO, National Golf Course Owners AssociationCEO, National Golf Course Owners Association

Golf’s Financial Metrics

Golf’s Financial MetricsGolf’s Financial Metrics

• Prior to GOLF 20/20Prior to GOLF 20/20

– NGF:NGF:

• Measured participationMeasured participation

• Tracked golf course developmentTracked golf course development

• Measured rounds via consumer panelMeasured rounds via consumer panel

– Golf DataTech:Golf DataTech:

• Retail Market Share ReportRetail Market Share Report

• On-course & off-courseOn-course & off-course


• Prior to GOLF 20/20 Prior to GOLF 20/20 (cont’d)(cont’d)

– No standard industry definitionsNo standard industry definitions

– Interest measured only by Nielsen ratingsInterest measured only by Nielsen ratings& tournament attendance& tournament attendance

– Various market/feasibility studiesVarious market/feasibility studies

– Sporadic measurement of economic impactSporadic measurement of economic impact


• Since GOLF 20/20Since GOLF 20/20– Established consistent definitionsEstablished consistent definitions

– Major Segmentation Study in 2001 has served as Major Segmentation Study in 2001 has served as a foundation for much of our growth activitya foundation for much of our growth activity

– NGF and Golf DataTech gathered data directly NGF and Golf DataTech gathered data directly from facilities on rounds with input from PGAfrom facilities on rounds with input from PGAand NGCOAand NGCOA

– PGA TOUR included monthly ESPN Sports Poll PGA TOUR included monthly ESPN Sports Poll as a measurement of interest, as well as ratings as a measurement of interest, as well as ratings and attendanceand attendance


• Since GOLF 20/20 Since GOLF 20/20 (cont’d)(cont’d)

– Measured scope of industryMeasured scope of industry

• $62 billion annual business$62 billion annual business

• Larger than recording & motion picture Larger than recording & motion picture industries combinedindustries combined

– Measured charitable impactMeasured charitable impact

• Responsible for raising $3.2 billion per year Responsible for raising $3.2 billion per year


• Moving ForwardMoving Forward

– More sophisticated measurement and reportingMore sophisticated measurement and reporting

– Focus on trends and outside factorsFocus on trends and outside factors

• Socio-economic issues, demography, diversity, etc.Socio-economic issues, demography, diversity, etc.

– More specific revenue informationMore specific revenue information

• Captured at course levelCaptured at course level

• Unified effort essentialUnified effort essential

• Nothing more important!Nothing more important!

• Moving Forward Moving Forward (cont’d)(cont’d)

– PGA Performance Track PGA Performance Track

– NGCOA Financial BenchmarkingNGCOA Financial Benchmarking



• NGCOA Financial BenchmarkingNGCOA Financial Benchmarking– Simple: Tracks two numbers – Rounds & RevenueSimple: Tracks two numbers – Rounds & Revenue

– Leverages largest multi-course owners/operatorsLeverages largest multi-course owners/operators

– Modeled after Smith Travel ReportModeled after Smith Travel Report

– Golf DataTech chosen for pilot programGolf DataTech chosen for pilot program

– Evolved into current, full program Evolved into current, full program


• NGCOA Financial BenchmarkingNGCOA Financial Benchmarking– Allows courses in a Allows courses in a Competitive Golf MarketplaceCompetitive Golf Marketplace

(CGM) to compare their rounds played, available tee (CGM) to compare their rounds played, available tee times, and golf revenue (green and cart fees)times, and golf revenue (green and cart fees)

– Individual numbers are kept completely confidentialIndividual numbers are kept completely confidential


• NGCOA Financial Benchmarking NGCOA Financial Benchmarking (cont’d)(cont’d)

– Program produces a Program produces a Revenue Per Available Tee Revenue Per Available Tee TimeTime (RevPATT) and (RevPATT) and Revenue Per Utilized RoundRevenue Per Utilized Round (RevPUR) index for every participant(RevPUR) index for every participant

– Each can compare to the CGM average and their Each can compare to the CGM average and their ranking within the CGMranking within the CGM


• NGCOA Financial BenchmarkingNGCOA Financial Benchmarking– Implementation, data capture and reporting is Implementation, data capture and reporting is

administered 100% on-lineadministered 100% on-line

– Each participant only needs to enter three numbers Each participant only needs to enter three numbers each month (rounds, revenue, tee time interval)each month (rounds, revenue, tee time interval)

– Currently:Currently:

• 26 CGMs participating26 CGMs participating

• Represents 580 coursesRepresents 580 courses

• 30-40 coming on-line soon30-40 coming on-line soon


• GOLF 20/20: What’s Next?GOLF 20/20: What’s Next?

– Continued focus on benchmarking/ Continued focus on benchmarking/ measurement at facility levelmeasurement at facility level

– Consistency and coordination among all groupsConsistency and coordination among all groups

– Emphasis on industry’s economic impact Emphasis on industry’s economic impact nationally and at the state levelnationally and at the state level

– Rigorous measurement of specific programs Rigorous measurement of specific programs and their effectsand their effects


• InternationalInternational

– Establish relationships that can provide Establish relationships that can provide information in both established and information in both established and emerging locationsemerging locations

– Track facility development globallyTrack facility development globally

– Catalogue governmental, environmental Catalogue governmental, environmental attitudes toward developmentattitudes toward development

– Encourage measurement of all activities, Encourage measurement of all activities, share models and metric strategiesshare models and metric strategies

Documents

Mike Hughes CEO, National Golf Course Owners Association