Where will we be in six months, a year, 5 years from now? COVID-19 is transforming our cities, our jobs, our economy, our lives and our sports and hobbies. It’s also fundamentally transforming all businesses and how companies can manage and survive a crisis of this magnitude. We are in the midst of a dizzying series of shifts that are so drastic it has become difficult to follow. When countries start to reopen over the next few months things will not be the same, people’s lives and attitudes will have changed and our daily routines will be altered.
We will never look at things the same way again. The way we interact and the way we live our lives will be different from this point on.
We all face a global enemy, a virus that doesn’t identify its targets and doesn’t care about borders. It is hard to comprehend the number of deaths, lack of preparedness, government vision and leadership but the fact is the pandemic is here, and there may be a second wave this fall and winter. Some say it will get worse before it gets better. How much worse depends on all of us.
The year 2020 will be remembered as a turnaround point in human history. Not just because many will die, but because the Covid-19 pandemic is offering us a chance to reinvent ourselves; the way we live, interaction with each other and other countries, business, economies, education, sports and more.
For many years now, the sport and business of golf has faced numerous challenges. Various industry sectors and groups have been working hard to make changes and adapt to new markets and trends. Golf is a niche sport and doesn’t have to be all things to all people. However, golf is a sport whose niche is narrowing and whose player base is dwindling. On the business side many golf courses sit on acres of real estate that have become increasingly valuable as expanding cities and developers consider the redevelopment of golf courses into various uses and in many regions’ some golf courses are becoming political targets.
Prior to the pandemic, golf clubs and the industry received many signs and warnings that the sport could fall into crisis if changes are not made. The main predicament is the golf industry overbuilt in the 80’s and 90’s. This situation is slowly being corrected and will take time but supply still exceeds demand. Not helping the sport, the demographics continue to be old, white males and the industry has a hard time attracting new and younger players. Each year many people leave the game because of death or the physical inability to play, and so every year they have to be replaced.
On the positive side, golf has a healthy number of core golfers and some good development programs, but the industry must all work together to be innovative and active to appeal to new and younger players.
With the scale of the COVID-19 pandemic that we are seeing at the moment, the effects are far-reaching, impacting people and businesses of all sizes across the globe. Some economist say it is unlikely we will recover to pre-pandemic levels before 2022. Many golf clubs both locally and nationally will be severely and negatively affected by this pandemic while some others may rise to the challenge, seize the possible opportunities, make changes and if possible be positive and not consumed with daily negative news and dwell on the threat. The golf business is changing and we will not be able to switch it back on again and go back to the way we played and did business in past years. To say the events surrounding the coronavirus have been disruptive may be the understatement of the new decade.
Golfers, golf clubs, facilities, resorts, golf retailers, associations and golf businesses are about to face a variety of challenges, regulations and all will have to adjust to issues that you never would have thought were possible. Unfortunately, nobody knows how to restart the engines, work with a new economy, and understand or comprehend current market conditions. The challenges are new to everyone and there is no book to read, course to take or podcast to listen to help. We’re in uncharted territory, but we’re already seeing the outlines of a different golf culture. There are many questions and few answers right now.
Some of the questions or concerns I have recently heard:
Naturally the first one is when will all the golf courses be allowed to open? Then, how many golfers will be allowed on a course per day? Will we be able to hole-out or just hit the inverted cup? Will we rake bunkers or just walk away? How will I book a tee time and will I be allowed to use the facilities in a clubhouse? If the course does not open on time and I am not allowed to use the clubhouse services, do I have to pay my full dues this year? Will members and clubs pay all their full association dues this year as revenue will be down? What about tournament business, can you have a 144 field? What about the use of the range, putting green and can the golf professional offer lessons? Will the club continue to have tournaments, club championships and member guest events? Will caddies be allowed and will golf carts be for only singles? Maybe clubs should invest in leasing the new single player rider carts now? Will the off-course retailers be opening and if they miss the key spring season, will they be able to survive staying in business with high rents? Many private golf clubs are in financial difficulty and will they have to change policies / strategies or will this be the end of some clubs? Courses on the financial edge may turn into housing developments or parks. How will resort courses who rely on travelling golfers be able to survive? It may take years for the travel market to recover and destination will have to enhance marketing activities to entice golfers to start traveling, going to airports and sitting on a plane. Is this the end of all consumer and business golf shows? One of the biggest concerns is the impact on charities. Just last year the PGA Tour generated a record fs $204.3 million to charities or a total of $3.05 billion. That is just the tour and not to forget all the other corporate and charity events held each year. How are golf clubs going to replace lost tournament business?
So, what are golfers and golf clubs/industry going to do? First here is a sample list of some dos and don’ts.
Don’t:
· Come to the course if you are coughing, feverish or exhibiting any sickness.
· Arrive more than 20 minutes before your tee time and no lingering after it’s over.
· Bring cash to pay: only credit and debit cards accepted.
· Touch the flagstick.
· Expect to rent clubs or use the clubhouse, driving range or practice putting green. None are available
· No handshakes, fist or elbow bumps
· Don’t complain or bitch about conditions or service. Staff is doing their best to keep you safe
Do:
· Maintain physical distance of at least two metres at all times.
· Bring your own hand sanitizer, snacks and water, but don’t share the last two.
· Listen to the instructions of the starter overseeing the first tee.
· Drop off carts in designated area and remember only one person per cart.
· Play preferred lies in sand traps (allows the golfer to pick up and move the ball but not closer to the hole) and smooth sand with your foot before leaving the bunker.
· Course amenities that normally create communal touch points such as bunker rakes, ball washers, garbage cans and hand blowers should be removed.
· Cups have all been fitted with a filler to keep the ball from going to the bottom of the hole or tuned upside down. Encourage continuous putting (putting until you hole out) and the awarding of a gimmie to all who get their ball within two feet of the hole.
· Be grateful to be able to play and be outdoors
· With no competitive events, enjoy a fun game and share experiences with friends
As golf re-emerges, clubs and the overall golf industry must look at new opportunities; rise to the challenge, be positive and update business strategies by being creative and innovative. Savvy course owners, golf professionals and management must embrace emerging trends and the new regulations concerning how the game is being played. Most importantly how will your club or golf facility accommodate guests, improve new opportunities for better golf experiences while at the same time sustain the overall businesses?
Yes, it will be a lot of work and you may have to give up a few games each week to enhance your knowledge. You will need to network plus get up-to-speed with new technologies and learn about marketing and promotion. Courses need to open up to savvy, social media, connected-with-my-device types. Observing club operations/management and their marketing practices for many years, I concluded most clubs and golf facilities need to improve and enhance the effort put forth in marketing, promotion, data collection, communication and start thinking outside the box. Unfortunately, many still rely on the old marketing plan from the 60’s and 70’s – “build it and they will come”. Some employ third party marketers or discounters who say they will do your marketing but in reality, discount your rates and take your customers loyalty. Yes, that is an easy marketing tactic to fill some short-term empty tee times but in fact is not advantageous and not a good long-term marketing strategy.
Anyone in the golf industry who thinks we can return to normal without major adjustments will struggle. There is no normal; we have to move forward, adapt, innovate and create a new standard. What that new standard will be is anyone’s guess at this time.
As we move forward clubs and facilities need to evaluate each department, try to find new ways to generate revenue and provide exceptional customer service with unique promotions and activities that engage your customers and help develop and grow the club or facility for future years. Take a look at what Copetown Woods Golf Club in Copetown, Ontario accomplished over the past Easter weekend. Wanting to keep a club tradition alive Barry Forth the Director of Guest Experiences did not want to cancel the popular Easter Brunch and wanted to develop a Good Friday promotion. Using social media and the data base they developed, word spread throughout the community. “Hundreds of shares by perfect strangers led to astonishing numbers” said Forth. With all orders pre-paid and curbside pickup, they served over 362 Fish and Chip on Good Friday and 743 Easter Dinners. The overwhelmingly positive reviews flooded their email basket and the club will continue with promotions every weekend moving forward with a new menu! Forth said “Without the ability to open the golf course, we are adapting to stay relevant and keep people working … and there are no signs of slowing down.”
Another great example of showing how golf clubs continue to impact and support the local community is the TPC Toronto at Osprey Valley Golf Club in Caledon Ontario. They made a $100,000 donation to Caledon Community Services in support of The Exchange food distribution program, and continue to explore additional ways we can assist those in the community impacted by the COVID-19 pandemic. Now I am sure not all clubs have extra money available at this time but why not get involved and support your local community. Most importantly say THANK YOU to your local first responders and health care workers. Give them a free round or special discount or package at your club to show appreciation. Get involved with your community as they are all potential customers.
For clubs, both private and public the food and beverage department were one of the most profitable divisions for clubhouse operations. Now is the time to get creative, take some chances, make changes to develop new revenue sources. For the foreseeable future, forget about corporate tournaments or shot-gun starts as this will create too much crowding. Your dining room will have to be configured to create more space between customers. Maybe its time to rethink your beverage cart service and how you can provide better service and items to buy. Its possible that many restaurants around your club may not be able to stay in business so you could have less competition. Think if it is possible to convert your operation into a takeout service that not only provides meals to golfers but to the immediate neighborhood. Vary your menu and create promotional themes that provide different food experiences each week or month. Package in some take-home food for after your round with green fees.
In the Pro Shop have you started an online store with curb or first tee pickup? Do you communicate with your customers and actively merchandise items? Have you developed a data base and if not do you have a plan to start collecting data? It always amazes me each year clubs have a starter at the first hole but if a club was “smart” they would also have a finisher. Thank the customer for visiting, hope they had a good time, make a special offer to come back and by the way stop in at the shop or restaurant for a special today or take home some food for the family. Create a variety of special packages that include pre-paid tee times, loyalty program, package in lessons or food items. Now is the time to be creative, get active, upsell and develop package programs that are no-brainers.
Since golf carts may only have one rider maybe its time to look into all the new single rider carts and develop a new rental fleet. More people may be walking now so upgrade your pull cart services. Give some thought to stocking smaller carry bags.
For the Superintendent and the turf/maintenance department, you may see a variety of different standards as they all try to maintain a course in this new world. Golfers might find conditions this year are less than optimal, unraked bunkers, stationary flags and cups turned upside down. Keep in mind they are all trying to keep everyone safe so I hope everyone is complimentary on course conditions and appreciative of all their efforts.
Finally, and I know if you are like most people I have spoken with recently, the Covid -19 virus has everyone worried, tired, frustrated and many afraid. You may even be angry or disgusted because you think some people aren’t taking the pandemic seriously enough, while others are being overzealous and unnecessarily panicked. You might believe that the call for social distancing is unjustified or that the government is not being fair or is out of control. Whatever feelings the virus has prompted, we know one thing for sure, the world in which we live has changed. We now have a choice: we can succumb to the pressure of the pandemic or rise to the challenge, seize new opportunities and reinvent ourselves and our business. Golf will survive and at this point in time the sport and the golf industry have a great opportunity to promote the benefits of the game, it culture and thrive once the virus has been defeated.
Let’s all remain thankful for this wonderful game and I look forward to hearing all your stories and how the world is a better and safer place. I can be reached at randy@linksmarketing.ca. Let me share some of your experiences with our readers.
