The 7th annual State of the Industry report, produced by Pellucid Corp in collaboration with Edgehill Golf Advisors, outlines the case that the golf industry suffered minor setbacks in most key measures in 2008 but, relative to the general economy and other industries, performed better than expected. In short, the industry appears to be living up to its “recession-resistant” reputation.
Key issues addressed and answered in the report include:
• Did the key consumer base measures of Participation, Frequency and Play Rate continue to contract and, if so, by how much?
• Did we continue to see a migration to lower involvement levels (Involveds & Casuals) among the golfer base?
• Factoring out changes in supply and weather impact, did the key measures of facility rounds Velocity and % Utilization decline, stabilize or improve?
• Did national-level Revenue per Available Round (RevpAR) improve or decline and, across major markets, were there RevpAR “winners” even in the face of adversity?
• Has the average golf facility “crossed the Rubicon” on profitability whereby they now have the most investment and exposure in the golf industry?
• What are the major barriers to increasing participation and involvement and are there any feasible, scalable solutions in the near-term?
• Is it possible that the golf consumer demands a product that we can’t profitably deliver and how will that be resolved?
• Why facility marketing, facilitated by technology and increasing cost efficiencies, will be a strategic imperative in 2009 and beyond augmented by the continuing evolution of industry-level initiatives.
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The analysis was presented and discussed among invited guests at 3 presentations during the PGA Merchandise and Golf Industry Shows. The key discussion points among the 225+ participants are incorporated into the final report now available to the general public.
The report has two components: A PowerPoint presentation of 50 charts containing graphs, tables and key bullet points answering the above questions and a 36 page narrative analysis in .pdf format that incorporates the key PowerPoint charts and weaves the story together with colour commentary interpreting the numbers and trends.
The report is available electronically for $249. The rate for current Pellucid clients (purchasing any Pellucid report or service in the past year) is $199. The report can be combined with a subscription to Pellucid’s tri-weekly enewsletter, Outside the Ropes, for $329 (savings of $50 vs. buying separately). Interested parties can email Jim Koppenhaver to order or to obtain a sample of the report (jimk@pellucidcorp.com).
Pellucid Corp. President Jim Koppenhaver comments on the latest evolution of this industry-standard evaluation of industry health saying, “As in any good analysis, the report provides support for some conventional industry wisdom while exposing other industry ‘hopes’ using an increasing array of facts and an improving quality of measures.
“The industry was able to ‘take a punch’ in 2008 but we did see some deterioration of conditions in the 2nd half when analyzed vs. the first six months. Our constant objective is to be neither the industry ‘optimist’ nor ‘pessimist’, but rather the industry ‘realist’ in providing our clients fact-based assessments and prognoses that help them make better-informed business decisions.
“We believe the State of the Industry analysis and report delivers on that promise and is an essential document for almost every industry stakeholder.”
More information on Pellucid’s other services can be found at www.pellucidcorp.com