Showing posts with label Country Clubs. Show all posts
Showing posts with label Country Clubs. Show all posts

Monday, March 2, 2009

Golf Demographics: Surviving Through the Ages

I received a comment last week that brought up an issue I had been planning on discussing since this blog’s inception. One-Eyed Golfer, an accomplished blogger in the golf realm, introduced demographics into the conversation on the health of the sport. He charged Gen X and Gen Y with responsibility for declining rounds and revenues, but left the door open for further discussion. Basically, the argument presented was based on the outlook held by younger Americans that golf is too time consuming and too costly. Though I agree that my generation and the one preceding me are playing fewer rounds than our parents (one cannot refute hard data), I argue that the game has yet to benefit from retiring Baby Boomers. Furthermore, I believe the game has the potential to adjust to the Gen X and Gen Y lifestyles through appealing to families and time-constrained players.

First of all, let me clarify the terms I will be using here to discuss generations. The Baby Boomers, which makes up about 25% of the country, were born between 1946 and 1964 (ages 63-45), according to the Census Bureau. Next, Generation X (Gen X), often called the "baby bust" for declining fertility rates after the Baby Boom, was born between 1964 and 1976 (ages 45-33). And finally, Generation Y (Gen Y) was born from 1976 to 2001 (ages 33-38). Pictured above, the population pyramid as of the 2000 US Census shows the layout of the US population by age. Note the bulge from ages 54-35 on either side to understand the impact Baby Boomers have had on the US population just by their sheer numbers. In the 2000 Census, the age group consisting of 45-54 year olds increased 55% of the 1990 Census. This dramatic increase will carry through for years to come. According to the Census Bureau projections, the 65 and older age group is expected more than double by 2050. An older population means great things for the game of golf.

As one of the liveliest generations this country has experienced, the Baby Boomers will require further activity through retirement. I foresee hundreds of thousands of Americans in the next 10-15 years moving on or near golf courses to be close to the game. My perception drives this opinion, but a study from 2006 showing the Baby Boomers playing fewer rounds per year, as compared to their predecessor, but at a higher participation rate, reinforces my premonition. This is good news; even though the Boomers are playing more infrequently than those before them, more of them are playing. The downside – infrequency of play – can be easily attributed to something that is great for our economy, but hurting the game of golf: the Baby Boomers are still working. Frankly, they do not even want to be associated with retirement. Even the AARP underwent a makeover to adapt. The group does not spell out the entire name anymore. Christine Donohoo, associate executive director of the membership division at the association, stated “the boomers want to be seen as vibrant - and we need to be responsive to that.” The Boomers have built their generation around that of activity and change, and basically, they are not coping well with aging. Accordingly, the average retirement age has been increasing at a steady rate over the past couple of decades. Older Americans possess a greater expectation to be self-reliant throughout retirement and provide wealth to their children and grandchildren after death. I am an optimist, though. As it relates to the game of golf, however, more workers equal fewer golfers. Retirement and golf have been synonymous among my generation and for good reason. The game is challenging yet easy on an older person’s body, and it supplies enjoyment and needed exercise. Studies have actually shown that golfers live longer than others and that the activity involved in playing one round of golf can even make you sleep better. The game stands to reap higher play and greater revenues when the Baby Boomers retire, but with what is happening to almost everyone’s 401Ks, many Boomers are pushing their retirement date back. Golf will have to wait.

On the other hand, golf has not been too popular with Gen Y and Gen X. We believe the game is too slow paced, takes too much time, costs too much, and does not constitute ample exercise. I love the game and always will. But, living in downtown Los Angeles, taking a full load of challenging courses, and trying to build a social and professional network, I rarely find time to get on a course. And I mean rarely. Last semester, excluding holidays, I played three times. To put this in perspective, if I did not play three times over a five-day span in high school I would not have slept. In college, on the brink of entering the real world, I can not find time to enjoy a round, and neither can most of my classmates and co-workers. We, Gen Y, have too many things going on, too many pressures to be successful, and too many appealing alternatives to get outside and exercise. The generation before us, many of whom are our parents, feels the same way. Yet, they have one more factor that keeps them off the course: children. With pressures to put their children through the best schools and provide for them the best opportunities for success, a parent can not spend 5-6 hours on the golf course very often. Nor do they want to spend that kind of money on themselves.

Nevertheless, solutions to the Gen X and Gen Y problems do exist. Implementing them, however, will be a real challenge. First, the game needs to get shorter. Designers of executive courses, like Knight’s Play (pictured adjacent) and par-3 courses are beginning to understand this with some recent courses. The game can market itself as a sport that can be played in less than two hours and still be worthwhile. The top designers will be reticent to this movement, but if people prove this profitable, the Pete Dyes and Jack Nicklauses of the world will follow (well, maybe not those two). These courses are cheaper than the traditional courses, too. I generally turn my nose up to executive courses, but usually because the holes are uninteresting and poorly maintained. Make them fun and in good shape and I will attend. So will others.

Next, the game needs to be marketed as a family experience. Show parents the benefit of learning the rules and etiquette of the game, and how professional golfers are the only professional athletes that take responsibility for self-administering the rules. Open courses that let families play two or three holes together without pressure from serious golfers to keep a steady pace. What is more, market golf to children, for they are the future of this game. The ones that catch on will graduate to full-length courses. Gen Y parents want to be around their children and teach them new things while keeping them away from video games, TV, and computers. Walking around a beautiful, green golf course for a couple of hours in a day with your children is a great way for families to connect and interact. Later, parents can drop off their adolescents and teenagers to enjoy the sport with their friends and build camaraderie.

If the game can realize its potential among the younger generations, it could have a bright future in American sports. Golf has the ability to bring generations together as a binding force, which it already is. Younger Americans need to stop associating the game with reirement. And, frankly, the Baby Boomers need to retire. The sport will always be successful in the older demographic. Leave the country clubs to the retired and upper class, and give us something new. If that happens, we can all enjoy the game in our own way.

Monday, February 23, 2009

Is There Anybody Out There?: What Other Golf Bloggers Are Talking About

This week I spent some time wandering through the blogoshere to find others committed to following the latest in golf problems and solutions. I would have to say that I did not feel to great about the sport after reading Chris Henry’s piece, “The Screws Tighten” at Eagle Par Birdie. His entry directed me to an article that shows starkly different data on green fee prices and number of rounds played on which I had previously reported, and paints a very gloomy picture. I am interested to find out what Mr. Henry thinks the industry will have to do in order to adapt to the slumping economy. Maybe I can get his opinion on the next piece, too. In Deeds & Weeds, a blog on Golf Digest’s website focused on Real Estate and Finance, Geoff Russell took a more narrow focus in detailing two cases in which country clubs are offering rounds to the public in hopes of increasing revenues. In “Ohio Club Allows Public Play: A Sign of the Times?” Mr. Russell may have found an opportunity for other struggling country clubs in America. The piece is very interesting and brings to my attention a new strategy for private clubs. I enjoyed both posts and left comments for the authors, which you can view below.

“The Screws Tighten”
Comment

I, too, am deeply troubled by the challenges the game of golf must face in 2009, so much so that I created a blog last month to explore the subject. This is a topic I want to find more about, and I appreciate your post and link to the article on Golf.com. It seems apparent now that the industry over invested in Tiger’s success and began opening courses at a rate the market could not support. I agree with you that the data looks gloomy, but if you get the chance, check out the January 2009 PGA PerformanceTrack data (I linked to it on my blog). The study compares 2008 data to 2007, and actually states that green fees went up last year. It sure is different from what the NGF is saying. I was rather surprised when I saw their data last week, it seemed too good to be true. They report that rounds played were down only 0.8% last year compared to 2007, and most of that looks attributable to poorer weather.

Anyways, what do you think course managers will have to do to keep people on the course? I came across another entry this week (also linked on my blog) that talks about a private course in Ohio that will allow public golfers to play on weekdays after noon and weekends after 2 p.m. You mentioned that golf courses are going to have to get creative, do you think this will work? I guess time will tell. I take comfort in knowing that at least this week, fans across America will actually watch the game, though. Thank God Tiger Woods is back.

“Ohio Club Allows Public Play: Sign of the Times?
Comment

Thank you for bringing this article to my attention. I have been exploring the game as it meets the challenges brought on by the lagging economy on my own blog since the beginning of the year. I believe this strategy may very well be one that other private clubs adopt in the coming quarters. From what I have read, there are a lot of club members that are seeking to sell their memberships, and even others losing their equity stakes because they can not make their monthly payments. Wildwood’s members must have been facing the same dilemma when they agreed to this policy. I am interested to find out if you agree with the move, do you think it will work? I can imagine some of the members are going to be really upset come April 1 when they have to share their beloved course with the public.

It is going to be an immensely challenging year for the sport, and I’m looking forward to reading more that you and Mr. Finch have to say about golf real estate and finance. As you have shown in this post, course mangers are going to have to be creative in order to stay alive. I do not believe, however, that the line between public and private golf courses should be so blurred. Wildwood’s managers have probably already tried other options, like lowering initial membership fees to attract new golfers or lowering annual fees to keep their current members. I hope, for their sake, that the strategy works. However, I think that as soon as the economy moves in the right directions, they should stop this policy and work on making their members appreciate again what it means to be a in a club. And, to be perfectly candid, I’ve never been in one.
 
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