The latest issue of Golf Inc. speaks to How Golf facilities can continue positive momentum in 2025, citing insights from -SLRG research and commentary from President Jon Last
Optimism and opportunity: Those are the words that two of golf’s leading analysts are using to describe the industry’s positive momentum. Increased participation is leading to opportunities for growth.
Jon Last, founder and president of Sports and Leisure Research Group, and Jim Koppenhaver, founder and president of Pellucid Corp., both predict the game will do well in 2025.
Last is particularly optimistic about higher-end facilities that cater to the upper stratus of the market.
“If course owners are mindful and listen to the customer, they’re going to be positioned for success,” Last said.
Koppenhaver’s optimism is focused on bringing back golfers who left the game when the pandemic eased.
“Pellucid’s data indicates around 4.3 million golfers lapsed from playing in 2023 and need to be invited back,” Koppenhaver said.
Variables at play
Last said he sees an oxymoron of sorts: Even though people are concerned about inflation and cost of living, the golf industry has been enjoying a resurgence.
He said golfers are living for the moment regardless of economic headwinds. But the lifestyle and spending may not continue.
“Past indicators show to watch for a slowdown and be prepared to pivot as needed to maintain course operations,” Last said.
When it comes to amenities, he sees a continued push toward gamified ranges and screen golf. He said these approaches make the game more accessible by extending it beyond the traditional 18 holes.
Last also sees an opportunity for courses to reimagine F&B offerings and entertainment to help create stickiness before and after a round of golf.
“Focus on key business objectives to create actionable deliverables to attract people [who] weren’t necessarily engaging in the past,” he said.
Updated racket sports facilities are also on the increase, as clubs expand their amenities to attract and maintain customers. “There’s more conversion of unused inventory or building accessories for pickleball and other racket sports,” he said.
“It will be interesting to see what staying power these amenities have going forward.”
For private clubs, the key is to create an experience by making changes and adding amenities that speak to the customers’ needs and wants. But, be mindful of price elasticity, he said.
“Owners should perform price elasticity analysis to optimize what different customers are able and willing to pay at different times,” he said. “It’s best to keep a pulse on your business and do so in a thoughtful way, as there may be a ceiling approaching in terms of the ability to push rates higher and increase volume of play from existing customers.”
He said facility improvements should be based on transactional data collected on all amenities.
“Take inventory of your club culture, and understand your reputation,” Last said. “Ask members, guests and staff for input.”