3 Tee Sheet Statistics Golf Course Owners Need to Know
3 Tee Sheet Statistics Golf Course Owners Need to Know

3 Tee Sheet Statistics Golf Course Owners Need to Know

Posted on August 08, 2018

3 Tee Sheet Statistics Golf Course Owners and Managers Should Know

As a golf course owner or manager, you know that effective tee sheet management is critical for public golf courses. The more tee times you sell, the more profitable you will be because there are few variable costs associated with selling a tee time. Almost all course maintenance expenses are fixed, and variable costs associated with putting an extra golfer on the course – perhaps a pencil, scorecard and some labor associated with filling divots and fixing ball marks - are very low. The net profit on a tee time is somewhere between 90 and 99% for most courses.

Your path to improved profitability likely involves figuring out how to sell more of your golf course inventory, but understanding your tee sheet is the first step you need to take. How do you know what actions to take? What metrics should you evaluate?

Here are three Tee Sheet Statistics you should know; and how to use them.

Utilization - the baseline metric that tells you what percentage of your tee times are sold. If your utilization is 80%, you are letting only 20% of your inventory expire. Vice Versa, if your utilization is 20%, you are letting 80% of your tee times expire. Are increases in utilization always good? We'll get to that.

Revenue per Round - another baseline metric that tells you the average selling price of your tee times. Is an increase is Revenue per Round always good? We'll get to that too.

RevPAR - Revenue per Available Round is a combined metric that tells you how much revenue was created for each tee time available on your tee sheet. Conceptually, this metric incorporates both Utilization and Revenue per Round into a single statistic. Is an increase in RevPAR always good?

Now you know the three most important tee sheet metrics, but how do you evaluate? Increases and decreases in Utilization and Revenue per round are not necessarily good or bad. This quandary reminds me of the age-old marketing question: Would you rather have one million dollar customer or one million $1 customers? This is the heart of the price vs. utilization argument. A course could drop its price from $50 to $1 and likely get utilization close to 100% during peak hours, but it is easy to understand that is unsustainable. Conversely, the same course could increase price from $50 to $200 and likely achieve 300% growth in Revenue per Round, but would that really help? Increases in Utilization and Revenue per Round are not unconditionally good.

Increases in RevPAR are unconditionally good, because RevPAR compares the total captured revenue per available tee time. In the example above, RevPAR will uncover if the course captured more or less revenue based on the price increase or decrease. An increase in RevPAR is always a good thing.

Finally, is your technology package giving you access to these metrics? Your Tee Sheet should have an easy way to evaluate all three of these statistics. If it doesn't, you need a new technology package. If that sounds like a daunting process, you are correct. Here at Landscapes Golf Management, we have extensive knowledge of the technology available to you, and we can help you find the right mix of platforms to suit your needs. Request Information or email us and we'd be more than happy to help.

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