Inflation, the COVID Participation Surge and Golf Facility Pricing Strategy
KEY TAKEAWAYS:– 58% of golf facility owners believe that business is booming- 70% of private facility owners believe the participation surge experienced during the COVID pandemic will continue in 2022
– Nearly 3 in 10 facility owners are concerned that the golf industry will push price increases to far- Only 20% of facilities reported that they were fully staffed in 2021
JON LAST: “Business cycles are a never ending tug of war between opposing economic conditions. As we make our way through the peak of the 2022 golf season, we see the conflicting forces of unprecedented inflation levels smacking right up against the two year upswing in player participation and a resultant push for more topline revenue. Our recently released 2022 Golf Business Pulse Report published by NGCOA, and sponsored by USGA, provides some valuable perspective from golf facility owners on where things are headed in the short to mid term.
On the positive side we saw 58% of golf facility owners strongly agree that the business was booming, with 40% anticipating +5% or greater profitability growth for the current season.
In depth interviews conducted with a broad representation of course owners, illustrated this sentiment with a continued influx of newer players and those who increased their frequency of play during the COVID pandemic. Such optimism is supported by our ongoing Back to Normal Barometer data that continues to affirm that a majority of active Americans have been underwhelmed by their return to favorite pre-pandemic activities like dining out, travel or going to the movies. In our late July Barometer data, some 56% of Americans agree with this sentiment, the highest we’ve seen since last October.”READ MORE >>