Golf has strengthened since the Great Recession. While the game has not returned to its early 2000s heyday, golf has enjoyed new, sustainable success, offering fresh opportunities for the industry. Here are some of the latest trends and developments in golf.
Stabilization and Growth
According to the National Golf Foundation (NGF), 23.8 million people played golf in 2016—approximately the same level as in 1995, just prior to the Tiger Woods apex of 30 million golfers. In 2015, rounds played increased for the first time since 2012 with 1.8 percent jump. Rounds played continued to increase, growing by .6 percent last year.
During the two decades preceding 2006, the supply of golf courses in the U.S. increased by an unsustainable 44 percent, reports NGF. Since then, the total supply of courses has declined each year; however, this drop in supply is modest—just 5.9 percent. Despite the reduction in supply, the U.S. is home to 45 percent of the world’s golf facilities.
While the total number of courses continues to decline, the market has adjusted its focus and is investing back into its current facilities. Since 2006, nearly $3 billion has been put back into golf courses via capital projects. In 2016, nearly 100 golf courses re-opened after 18-hole renovations, totaling $300 million in value.
To gain perspective from the industry’s many business categories on both the health of the game and state of the business, NGF recently conducted a survey of top golf industry executives, “A View from the C-Suite.”. Seventy-two executives from golf’s leading businesses participated in the survey and represented companies that sell to consumers and sell to facilities. A smaller percentage of responding executives (10%) represented associations. Regarding the financial health, three out of four executives anticipate significant revenue growth and 90 percent are confident that they will achieve the financial projections for which they have budgeted. Their commitment to plans for future investment further reflects their optimism—62 percent have increased investment this year and 76 percent expect to increase their investment in the near future (three-to-five years). This demonstrates executives’ confidence, not just for the near-term, but for the long-term as well.
Newcomers Welcome
The resurgence in the game is fueled in part by golf’s efforts to attract new players.
An estimated record 37 million non-golfers say they are interested in playing the game, says NGF, and roughly 20 percent may already start playing soon. In 2016, a record 12.8 million non-golfers said they were “very” interested in playing the game. Golf is also growing off the course, with 11 percent growth in this area due to driving ranges, indoor golf simulators and Topgolf. Last year an all-time record of 2.5 million people took up the game for the first time, surpassing the previous high of 2.4 million during Tiger Woods’ rise in the 2000s.
What Would Get Non-Golfers to Play
According to an NGF survey, latent golfers would play the game “if …”
72% a friend or family member invites them
71% a facility offers free range balls (for an introductory period)
60% their kids could play or learn with them for free
49% there is an affordable group lesson plan with clubs provided
47% a local golf course reaches out to them
Topgolf By the Numbers
Topgolf’s reach to new golfers included a free five-minute lesson at select facilities on National Golf Day, April 26, 2017. Here’s a snapshot of Topgolf’s players.
Average Length Topgolf Visit: 2 hours
Average Visits Per Day: 26,000
Average Party Size: 4
Gender: 68% male; 32% female
Average age:
15% ages 17 and under
52% ages 18-34
16% ages 35-44
15% ages 45-64
2% ages 65 and over
Type of Golfer:
37% non-golfers
28% occasional golfers (1-7 rounds annually)
21% moderate golfers (8-24 rounds annually)
14% avid golfers (25 or more rounds annually)
Source: Topgolf
Juniors
The golf industry has increasingly targeted junior golfers and to much success. Youth participation has increased, including 62,000 young women who were introduced to golf last year by the LPGA. In 2010 that number was just 4,500. Over the past five to six years, youth participation has increased by 500,000 participants to more than 3 million youths total, reports the PGA of America. According to NGF, since 1995, 50 percent more junior golfers under the age of 12 are playing the game.
PGA Junior League Golf, the PGA of America’s foundational youth program, has grown significantly in the last few years. Last year, a record 36,000 children nationwide took part in the program—a 300 percent increase from three years ago. The program is supported by PGA and LPGA professionals who provide instruction to the participants, while parents and family members are also involved as coaches and volunteers, emphasizing the entire family’s role in golf.
Some youth initiatives are removing one of the most significant barriers from golf—the price. Youth on Course strives to solve this problem by charging kids no more than $5 per round. The program has grown to more than 300 affiliated courses in 12 states and has received support from sport leaders like the Golf Channel and the NBA’s Stephen Curry. Also reducing the price burden on young players, the PGA of America has partnered with Dick’s Sporting Goods to offer underprivileged children at the Boys & Girls Clubs, The First Tee and other programs $500,000 worth of scholarships to PGA Junior League Golf.
The First Tee is another industry leader, reaching 5.3 million youths in 2016—a 13 percent increase from 2015. Forty-nine percent of its chapters are from various ethnic groups and 39 percent are girls. Get Golf Ready continues to successfully recruit new players to the game, introducing 107,000 people to golf in 2015 and maintaining an 87 percent retention rate. More than 8,700 PGA member facilities offer player development programming to adults and juniors, reports Golf 20/20, including beginner’s individual/group instruction, golf camps and clinics.
Women
Women make up just 24 percent of golfers worldwide, reports the Syngenta study, “The Global Economic Value of Increased Female Participation in Golf.” However, having more women play could pay large dividends. The study reveals that the golf industry could generate as much as $35 billion by bringing more women into the sport. There is significant untapped potential in this demographic. Twenty-nine percent of non-golfing women say they are interested in playing the game, including 17.4 million in the U.S. Women particularly enjoy the outdoor, relaxing and familial aspects of the game and are more likely than men to bring children to the course.
The golf industry has made concerted efforts to bring women to the game in recent years. Forty-percent of new golfers are women, reports NGF. Programs like Golf For Her introduce women of all ages and skill levels to the game. Golf For Her initiatives include sharing golf tips and advice, tournaments, connecting new golfers with instructors and other players as well as hosting “Women’s Golf Day.” Last year, more than 30,000 women worldwide participated in the two-part event that offered golf and clinics as well as social activities such as a fashion show and a post-golf wine and cheese reception.
Millennial Golfers
About 28 percent of millennials play golf, although at half the rate as previous generations, reports the PGA Tour. In total, millennials make up just over a quarter (26%) of all golfers, generating $5 billion annually for the industry. They play 90 million rounds a year.
A 2015 NGF report, “Golf and the Millennial Generation,” places millennial golfers into three categories:
Throwbackers: Roughly 3.3 million golfers (and 51% of all millennial golfers) who were introduced to golf at an early age. They are predominately white males and have attitudes toward the game reflecting those of baby boomers.
Breakfast Ballers: Approximately 1.4 million golfers who see golf as a social activity. They prefer to play with music, alcohol, gambling and social media.
Dabblers: About 1.7 million golfers who do not consider themselves golfers but have played a round in the last year. Two-thirds say they do not enjoy golf and will eventually move away from the game without intervention.
The PGA of America has begun to implement more relaxed policies at tournaments to draw in younger crowds. In January’s Abu Dhabi HSBC Championship, “walk up” music was played as golfers approached the first tee. This marked the first time the PGA of America had music at the first tee. “We were very happy with the way it was received and the experience it created,” said Kerry Haigh, chief championships officer at the PGA. At the LPGA Tour’s 2016 UL International Crown, walk up music was played during participants’ approach to the first tee to much success as well.
10 ways for golf to attract millennials
1. Golf could stand to chill a little. Relax tradition and align more with today’s less formal young players.
2. Let your millennial customers and friends help. Listen to your current millennials and find ways to enhance the game for them and their friends.
3. Give perks for personal info—it’s a proven strategy. More than half of millennials will give their personal info for something in return. Use this data to offer creative perks.
4. Embrace millennial social culture. More than just social media, millennials want a social appeal to the game.
5. Golf alone is not enough for many millennials—they want GOLF+. GOLF+ incorporates music, technology and other fun aspects to the game.
6. Change the perception that golf is an elitist activity. Forty-four percent of millennial golfers think the game is elitist or exclusionary. While serving many demographics, reshaping golf’s brand to become more welcoming would improve millennial attitudes toward the game.
7. Look outside of golf for solutions. Fun competitions like the obstacle course, Tough Mudder, have capitalized on millennial interest in running. Many millennials focus on fun more than scores and handicaps, opening new door for golf to create more entertaining opportunities for them to enjoy.
8. Embrace the four key pillars of millennial brand love. Innovation, authenticity, meaningfulness, and uniqueness cater to current Gen Y values, allowing this generation to enjoy experiences tailored to their needs.
9. “Co-opetition” is good (cooperation and competition). Golf’s leaders like the PGA and USGA are teaming up to promote a positive, unified message to attract golfers. Locally, courses can do the same, building support at the grassroots level.
10. Improve the onboarding process to make a better first impression. Golf training programs benefit the game by easing new golfers into the game.
Source: National Golf Foundation “Golf & the Millennial Generation”
New Ways to Get New Players
Friendly Tees and Shorter Courses
Adding more tees is one way golf leaders are helping to bring in new players.
Initiatives like the Longleaf Tee System and Scoring Tee tailor each hole to the golfer, allowing players to select from as many as seven tee locations per hole based on their ability. For one Longleaf course, rounds played increased by 20 percent and food and beverage as well as golf lessons grew.
Short courses are increasingly seen as a way to attract players of all ages and skill groups. In the Kansas City area, short courses are bringing in golfers of all ages. Golf legend Tom Watson’s short course, The Watson 9, is ranked by Golf Digest as one of the top 15 hybrid courses in North America, and offers junior instruction as well. Short courses also reduce playing time and make it easier for players to succeed, alleviating two of the game’s barriers.
Bring the Game Indoors
Golf facilities around the country are taking steps to bring golf indoors, allowing players to take swings year-round and, through the help of cutting edge technology, analyze and improve their shots. GolfTec is a golf training company that offers nearly 200 facilities worldwide. Its program uses high-tech video equipment and onsite instructors to track swing data like shoulder bend, shoulder tilt, hip turn and other key factors to a sound swing.
Apps
Golf apps are making the game more accessible for all players. Whether a golfer wants use the Quick.golf app to schedule specific holes at a course (and only pay for those holes) or use Golfshot Plus to track shot distances and hazard locations at more than 40,000 course, or evaluate the mechanics of a swing with the V1 app, or even request a caddie (in Charlotte, N.C., area clubs) from their phones through an app called ClubUp, there’s no shortage of innovative and useful apps available. The ClubUp app, which sends the request to one of its pre-approved caddies—much like Uber—also allows the caddies to measure key statistics during the round including accuracy, drive distance and putting metrics.
Ratings
More people are tuning into golf than ever before. In 2016, the Golf Channel, supported by golf’s Olympic return and other notable events, and NBC boasted their highest ratings. Together, CBS on FOX drew more than nearly 100 million viewers. Among millennials, the Golf Channel’s viewership increased by 33 percent from 2015.
Live streaming is growing as well. Last year, Golf Channel Digital, the channel’s video branch, enjoyed a 96 percent increase in live streams from 2015 to 2016. These numbers are promising for the game, as other sports outlets like ESPN have seen decreases in their viewership.
Charitable Giving
The golf industry is one of the most generous in the nation. Since 2012, nearly $20 billion has been donated to various causes and charities via golf, reports NGF and the World Golf Foundation. Annually, the industry donates $3.9 billion to charity. While the number of facilities has declined in recent years, the ratio of golf facilities that have hosted a charitable event has hit an all-time high. In 2016, 12,700 golf locations (84% of the total supply) hosted an event. In all, 143,000 charitable events took place, attended by 12 million participants.
Economic
Golf is vital to the American economy, creating more than 2 million jobs and providing workers with a combined income of more than $55 billion. The game of golf is a $70 billion industry with an overall impact of $176.8 billion.
Bright Future
Golf today is strong. Roughly 95 million people play some form of the game, or watched golf on television or read about it in 2016, reports NGF. While golf’s recent retraction caused hardship for the industry, the game has bounced back, maneuvering around its own hazards and obstacles to update its identity to appeal to today’s current and prospective players. The game is now well positioned for growth and continued prosperity.
Private Club Golf By the Numbers
Here is a look at some key numbers from the Club Benchmarking database for private club golf operations. The numbers given below are the median (50th percentile) responses from the clubs recording information in 2016.
Number of Rounds Played (18-hole equivalents): 22,576
Number of Rounds Played Prior Year: 21,726
Total Golf Operations Revenue from Uniform Income Statement: $905,732
Total Course Maintenance Expense from Uniform Income Statement: $1,306,654
Source: Club Benchmarking, 2016
Club Trends Spring 2017