Golf Business Monitor

France selected to host 2018 Ryder Cup

What a big surprise! France was selected to host 2018 Ryder Cup. This is a great achievement to France, especially when we know who were the competitors (Germany, Spain, Portugal).

The games will be played on Le Golf National course near Paris. This is only the second time the biennial match between Europe and the United States will be played on mainland Europe. The first was in 1997, when the late Seve Ballesteros captained Europe to a single-point win at Valderrama in Spain.

There are three questions on my mind at this moment:

• How it will help to promote golf in France? 
• How it will promote France as a golf destination? 
• How much attention can get Ryder Cup in France where it is not as popular like in Spain, UK or USA?

Golf participation in Europe 2010

Those who are familiar with the golf industry they know that KPMG prepares from year to year a survey about golf course development and golf participation trends. 2010 is not an exception. ;) Since the last decade of the 20th century the pace of golf course building and participation is much slower that worsen in the past five years. Last year there was in fact a 4% decrease in the number of golfers in Europe's largest golf market: UK&Ireland.

 
KPMG tries to keep up the illusion that it is still lucrative to invest in golf industry. He does not mention the current economic climate that recently hit Ireland. Ireland is now asking for EU financial help, just like Greece, Spain and Portugal. You can imagine what will be next year when you try to play in Spain and Portugal...prices will reach the sky and people will abandon this lovely sport.

KPMG also forget to mention other curcial factors that I mention in my previous post, namely golf course owners' lack of relevant management knowledge and education.

Two other interesting facts from this survey: in Germany is the highest ratio of female golf players. In Turkey is the highest ratio of junior golfers.

Ireland's stumbling golf tourism marketing - part 2

As I promised in my previous post I will keep on analyzing Golf Ireland's Facebook communication. If I have to give KPIs for a Facebook brand page the following would be:

• Clear Community Expectations: what the brand (in our case Golf Ireland) is expecting from the FANs + what FANs can expect from the brand. I think this page meets the expectations: OK.
• Provide Cohesive Branding: the branding of the page is in line with the offline communication.
• Be up to date: well the last post was published this Tuesday, but in general the page does not tell too much about Irish golf championships, golf courses and competitions.
• Live Authenticity: we men of the street would like to connect to real people and the same behavior applies to Facebook brand pages as well. What I like in social media is that it humanizes brands, companies. Golf Ireland is does not move into this  direction. :-(
• Participate in Dialogue: well the page has only 50 fans, 3 comments, 4 "LIKE"s since 20 July 2010. So there is no much we can expect but they do not respond to these few comments.
• Enable Peer-to-Peer Interactions: it is still early to talk about it, but the benefit of enabling P2P communication is indispensable. 
• Foster Advocacy: I cannot highlight enough the importance of Word of Mouth (WOM). I think it is one of the biggest achievement what a brand can achieve in social media. 
• Solicit a Call-to-Action: this is one of the 2 great traits of this brand page by requesting to tell a golf story that happened with us in Ireland.

As the bottom line, Golf Ireland's Facebook brand page is almost dead and boring. They should think about content that motivates people express their feelings, thoughts + invite others to join. 

Finally, here is cool Irish golf course, Old Head Golf Links (Kinsale):http://oldhead.com/golf/course-overview/.

Ireland's stumbling golf tourism marketing - part 1

According to United Nations World Tourism Organization (UNWTO) the expected rebound of international tourism (arrivals, receipts, expenditure) is measurable. This recovery started according to UNWTO in Q4 of 2009. However this positive change will be seen mainly in South-East Asia, South Asia, North-East Asia and in the Middle East.  In Western Europe there will only +3% growth/change in comparison to the same period of the year (H1).

But what is happening in Ireland? The Irish economy is in recession since 2008 and it will stay there also this year, although the forecasted drop back will be much smaller than in 2009 ( -7.6%) "only" -0.5%. Some analysts say that the Irish budget deficit can reach this year to 20%. If this figures are not dashing than here come some KPMG research data: in 2009 in GB & Ireland region the number of round played decreased by 3% + operational costs increased at 43% of the golf courses they surveyed. The CEO of Club Managers Association of Europe (CMAE) Jerry Kilby says in the last 18 months there is a declining trend among young generations in golf club membership and the less frequency of play by casual golfers.

In light of these dire facts Fáilte Ireland (National Tourism Development Authority of Ireland) launched a massive image campaign (in spring 2010; including print media, online media and radio) to boost golf tourism and to show Ireland as an attractive golf playing country. Nice bunch of people from different organizations came together (Carr Golf, Killeen House Hotel, Helen's Bay G.C., Killarney G&F Club, NITB, Tourism Ireland, Fáilte Ireland) in March 2010. They looked for ideas how to position Ireland Golf to win, attract more golf tourists over such countries like Spain, Portugal, Turkey and South Africa (...always the sun....do you remember this song?) and give potential golf tourists reasons to prefer  playing golf in Ireland. Hmm..well, really challenging job I must admit.

The golf weather is not in favour of Ireland (but it is not so pleasant to play in hot weather (30 Celsius +) either. The accessibility of Ireland is not so easy (only by air and sea). What is their communication strategy of their image campaign? They claim  Golf Ireland's  USP (unique sales proposition) is "Inspiring Golf & Genuine Engagement on & off the Golf course". Their insight (I have not found any reference to any kind of market research) what golf tourists are expecting from Ireland is "an authentic golf challenge with stimulating shared experiences &moments" (like from any other golf tourism destination country). I put in italic the phrase shared experiences, because it says to me that they started to grasp that social media is really important in tourism communication. The brand personality Golf Ireland was defined as friendly, welcoming, unassuming, infectious. Are they serious? Is Ireland the only golf country that can claim these values?? I am not sure. The bottom line was: tagline = Time to Play. They think it is  unique to Ireland (LOL).

In their presentation I could not find answers to my following questions (based on P.O.S.T. method):

1. People: Who they want to reach? Why should we target them? What is the number of potential golf tourists?
2. Objectives: what do you want get out of this campaign? what would you consider as a successful campaign? More number of rounds on golf courses or booked rooms on golf courses and hotels? etc.
3. Strategy: how we will reach our objectives??
4. Tools: What technology should we use? What tools would make sense to help carry out out our strategy and reach our objectives?

Since the target audience was not defined and these unknown people media habit is unknown it is questionable the usage of print media and radio. To utilize Irish tradition of storytelling is a great idea (I guess every nation has such tradition, but never mind) as we are collecting information and ideas via social media. It was great to read that Golf Ireland wants to utilize such social media channels as YouTube, Flickr, Facebook. But how about golf social networking sites such as TheGolfSpace.com, MyCrazycaddie.com, iGolf.to, Golf-finder.net, Golfbuzz.com or GolfSn.com (there are many many more)? They also missed some well-known tourism social media portals such as Tripadvisor.com, Gusto.com, Wayn.com and MyTripBook.com...

From the very same document it does not turn out how they would:

• Define social media channels + who are the ideal social media channels?
• develop content for social media?
• participate in dialogs?
• foster advocacy?
• solicit call to action? etc.

In my next post I will give you answers how Golf Ireland could maximize Facebook. Till then here is Golf Ireland's Facebook page (http://www.facebook.com/#!/pages/Golf-Ireland-Time-to-Play/103509856365026?v=wall&ref=ts). So far they have only 20 fans/"LIKE":

Would you rent a golf club online?

In my previous post I wrote about how golf courses are becoming part of airlines' loyalty program. In the very same post I mentioned all the hassle that is connected with flying with our golf equipment (golf clubs, golf balls, golf shoes and golf bag etc.). Now here comes not a fresh new idea, but relatively new idea online golf equipment rental. Beside it is comfortable for golf players thanks to companies like FedEx, but it is a good opportunity for golf equipment companies (Acushnet, Callaway, TaylorMade etc) to sale latest golf clubs or upgrade players' golf equipment. How is it possible? In many cases these online rental service provider offer trial, rental and sale. So it is just question of mechanism how we motivate to make the necessary steps toward buying a new golf equipment.

These online golf equipment rental companies easily can become partner in loyalty program, promotions. Based on what I have found it is still not perfect sales channel or marketing tool. Some of these golf rental companies are focusing either on a country or number of counties and states (especially in the US) or not every golf equipment brand is available in one place. Probably the most serious service provider is Rentaclub from the UK. It is not surprising that TGI Golf is already cooperating with Rentaclub (UK company). Thus became TGI Golf, Rentaclub’s official retail partner. Rentaclub is one of those golf club rental companies where you can chose from leading, well known brands like Callaway, TaylorMade, Wilson Staff, Nike Golf, Srixon, Cleveland etc. And they are quite good is social media as well, by connecting their website to Facebook and Twitter.

Here are the major players in the golf club rental business:

• Rentaclub.co.uk
• Golfrentalandsales.com - global service
• Golfclubsaway.com - in Florida, Arizona and Las Vegas areas
• Testandrent.com - in Spain only; Callaway and TaylorMade golf equipments
• Golfrentalworld.com - only in the US
• Rentalclubhub.com - it seems to be global; Nike Golf, Cobra and TaylorMade
• Golfclubhireorbuy.com - in Spain only; partnership with TaylorMade, Ping, Nike Golf, Callaway
• Hrsgolf.com - for those who are in San Diego region (US)
• Golfclubsforrent.com - only in Ireland: Spalding and Callaway
• Golfgearhire.com - only in Scotland

Why all these important? There are many reasons.

Average rounds played on a golf course in the United States fell 1.1% in 2009, a drop of approximately 300 rounds from last year’s average of 25,000. As I can see from 2006 we are playing less and less. This cause smaller willingness to buy new golf equipments, renew golf course membership, golf players will spend less on golf courses etc.

Merchandise revenue dropped 11 percent in 2009, while revenue from golf fees and food and beverage were down approximately 5 percent. The amount of money spent on golf equipment declined moderately in 2009 amid restrained consumer spending. Probably Acushnet was the only golf equipment company last year who finished they year with positive balance.

Virtual golf course or an added value service?

Thursday I had a great day. I got involved in an interesting initiative of Business Golf International. As companies and not just golf courses are highly motivated to come up with ideas, solutions that will motivate potential customers to spend more money (even if they have not planned) and give them reason for repurchase and brand loyalty. The George-based Business Golf International and the world largest airline, Delta Airlines developed a new loyalty program schema, International Links Golf Club for SkyMiles members. This will be launched 1 March, 2010.

They promise to give access to 300 US golf courses and many others around the world. Here some of the big names: Doral in Miami, The K Club in Ireland, Trump National in Los Angeles, Son Anten Golf Resort, Valencia, Spain etc. Hopefully the Hungarian golf course Old Lake Golf Club will also join. :)

Well, they have not reinvented the wheel, because we can find many similar initiative with similar interests. As we know 2009 was not an ideal year for the golf tourism industry.

Singapore Airlines and American Express are offering access to Platinum Golf Card holders to 30 golf courses in Singapore and around the world. Last year golf tourism in Asia is bucked the global recession and gave the region a much needed boost.

What is more interesting, as it is more complex: Air France-KLM's FlyingBlueGolf program (with 850 destinations). They thought about golf players' life and their needs, such as car rental, community, tee time arrangement plus their website serves as social networking portal: www.flyingbluegolf.com.

Emirates' loyalty program Skywards Golf Fee Card is even more impressive. They offer to members up to 50% reduction on green fees at more than 2,300 golf courses in 112 countries.

My concern is, how many of us are joining such loyalty programs and do we maximize our credit points that we earned with flying with certain airline?  Those people who are traveling with their golf clubs, they must be ardent golf players. What is the ratio of ardent golf players among golf players? Last year the round of play declined even more which makes such offer less attractive and motivating.

In general airlines have the following rule regarding golf club equipments: you can take one item of golfing equipment is accepted as part of a customer's free baggage allowance. This means 14 golf clubs and 12 golf balls and 1 pair of golf shoes. Fore more information: http://www.theworldofgolf.com/travel.asp

UAE's golf tourism with hopes

In last couple of weeks everybody was worried about what is going on in Dubai (UAE) since it is well connected to the world business life as the "crown jewel" of the Middle East. As we know economic climate and prospects are effecting the golf industry. I found that Brad PItt one of the big losers of the crises since his property worth the half when he bought it in 2006.

Who would imagine that in such instance there are brave entrepreneurs who are expanding their business in golf tourism. So it is nice to read about UAE Golf Guide. I am not totally worried about the future of golf tourism in that specific region as the luxury industry is less effected by the global economic crisis. However I would re-valuate next year's financial plan. And for sure I would not expect a quick recovery from the current situation.  

Are co-branded golf cards the last resort for golf courses?

Today I received a direct mail from Golf Magazine. Golf Magazine is launching a co-branded card with Visa (MasterCard also offers co-branded credit cards). I started to think how we can use this idea in golf course marketing. In general, co-branded card work best for card issuers. This is because issuers actually save more money than they would by issuing their own credit card. We will have extra income from interchange fees. If the co-branded golf course card program will include discounted green fees, people will more likely to return to our golf course.

If this is still not enough, than think about this: we will get access such a powerful consumer insight database (in USA it is legal, in EU is prohibited since it violates privacy rights) that we could not get for such price. From this database we will know what, where and when they purchase. Based on these information we can come up with compelling promotion campaigns and adjust our pro-golf shop's assortment or even can initiate partnership with other companies (e.g. hotel, bank, insurance, car dealer and brand, jewelery, clothes&shoes, real estate etc). Yes, we should treat golf courses in the same way as other service providers.

Alpine Golf and KTC in Thailand launched co-branded card programme with Visa in 2007.

Golf industry's Superbrands

I was reading one of Golf Business Development's edition about a non-profit organization called Golf Environment Organisation(GEO). They claim about themselves that they are an international non-profit organization working to integrate the social, environmental and economic benefits of golf. Their 3 major aims are:

1. Strengthen the Golf Industry;
2. Enhance and enrich environment;
3. Encourage sustainable lifestyle. (e.g. facilitating informed golf tourism, providing inspiration, and utilizing golf's influence)

When I was reading their goals and objectives (I totally agree with them), they reminded me another "independent" organization with similar objectives but in different industry, Superbrands. In Superbrands' independent research process they ask a panel of experts and thousands of consumers of their opinion. In both places you have to pay for using the title.

So is this another PR tool or they real mean what they say? Will they be able to fulfill their mission and objectives? The participation in Golf Environment Organisation's programme rises many issues to think about:

• Would it make any difference to golf players if they know/aware of this certificate?
• How this will influence green fees?
• Can I expect more golf players in my golf club or not?
• Can I reduce operating costs? If yes, how much (%)?

If I am not able to monetize my investment in GEO than it better not to deal with it. My impression about Superbrands that nobody cares if a company or a brand holds such title, beside PR professionals and marketing directors.

Currently 3 golf clubs holds their certificate: Ljunghusen GC, Viborg GC and Forsgarden GC. 12 other golf clubs registered to this programme: El Plantio GC, GC Udine, La Pinetina GC, Kristianstads GC, Loch Lomond GC, Auchterader GC, Golfbann GC, Zaanse GC, RJ National GC, Celtic Manor GC, Bearwood Lakes GC and Coventry GC.

On Superbrands TOP500 list in UK, there is no golf brand or golf industry related brand.

Golf Digest's latest golf award - so what?

New year, new competition. 64 golf clubs, 46,000 people participated and 600,000 criteria evaluations were collected in the latest survey of Golf World (Golf Digest). Such survey and competition was relevant and useful when there was no online media and within it social media. This is still a good tactic for publishers to generate sales. However we can see the participating golf clubs' number is pretty low. So what is a value of this "survey"? Do they wan to fool us?

If anybody want to assess the real quality or popularity of his golf course, then here are some tools:

1. News buzz: Digg.com, Google News, Yahoo News
2. Social media buzz: Technorati.com, Google Blog Search
3. Blog conversations, trends and comments: Blogpulse.com
4. Photos, videos: Picasa, Flickr.com, YouTube.com
5. Social bookmarking: Del.icio.us, Reddit.com
6. Keyword referrals: Compete.com

By the way, Forest Dunes GC, Roscommon, Michigan won the competition.