THE CLUB INDUSTRY is at a crossroads. At the center of the dilemma is an aging population, with baby boomers representing the majority of club members. Logic dictates that the next generation will replace the boomers when they relocate, age out or die. While generation X (ages 37 to 52) fits what we think of as the optimal age range for private club membership, issues begin to surface as we dig a little deeper into demographic data.
The most obvious concern is size, with generation X being 28 percent smaller than the baby boomer generation. For clubs with golf, pressure is amplified by significant declines in the number of avid golfers over the past decade. The jury is still out on whether the gen Xers or their successors in the millennial generation, ages 19 to 36, will ever value private club membership in the same way as boomers, but it is a safe bet that it will take more than golf course updates and clubhouse makeovers to capture the affections of those younger generations.
Based on our research, innovation will play a major role in determining which clubs make it through the generational divide and which do not.
With success defined as compounded annual growth in net worth in excess of 3.5 percent over 10 years, data confirms the most successful clubs are already taking action: adapting and evolving programs and amenities to meet the expectations of both their current members and those they hope to serve in the future.
Analysis of Club Benchmarking member survey data shows today’s members place an increasingly high value on innovative, nontraditional offerings like quick-service dining, fitness centers, child care service, alternative sports like pickleball and resort-caliber aquatics. Clubs offering expanded amenities typically have higher initiation fees
and many of them have waiting lists. Through innovative thinking and strategic capital investments, they are proactively cultivating loyal members willing to invest in the club through vehicles such as capital dues and reaping the benefits through sustained growth in the club’s net worth over time.
Chris Davis is a director at Club Benchmarking. He can be reached at 617-830-2570, ext. 103 or [email protected].