Rounds Played & Revenue Report Released


The PGA of America and the National Golf Course Owners Association (NGCOA) has unveiled its year-end 2008 rounds played and revenue report from the PGA PerformanceTrak. The program is the leading source for golf-facility performance indicators and the largest single source of rounds-played data in support of the industry.

Highlighting results from 2008, which evaluated performance from PGA and NGCOA member golf facilities at the national and regional level, PerformanceTrak reports that rounds played were down -0.8% nationwide, with a similar decline in year-to-date (YTD) days open, at -0.7%. This is based on responses from approximately 2,500 facilities per month throughout the year.

Additionally, average rounds played in 2008 were 27,966, compared to 28,202 in 2007, with rounds played trending up compared to 2007 in five months (February, April, July, August and October), while trending downward during the remaining seven months of 2008. Average rounds played were down back to back in November and December 2008, where December average rounds played finished the year down -4.8%, with average days open down -2.7%. These results are indicative of the state of the U.S. economy during that time period.

The December 2008 YTD report of rounds played by facility type shows that rounds at private golf facilities were flat for the amount of days that those facilities were open (-0.4% rounds played and -0.4% days open). Resort rounds were down -3.7% compared to days open being down only -1.3%, an indication that resort facilities have been affected much more by the economy.

"In evaluating the 2008 data, it is clear that while certain markets in the country, such as Hawaii and Midwestern states including Ohio and Michigan and were challenged by the economy and weather, respectively, other markets such as Texas, Oklahoma, Washington and Oregon experienced positive results," said Joe Steranka, CEO of the PGA of America. "Thus, it is important that we continue to utilize PerformanceTrak to help navigate the economy and establish benchmarks for performance."

"With more than 2,500 facilities regularly reporting figures, there's no better source of rounds and revenue data from which facilities can benchmark their performance. And, in this day and age, knowing where a course stands relative to its local competition is more important than ever," said Mike Hughes, CEO of the NGCOA.

2008 Key Performance Indicators (KPIs)

In addition to rounds played monthly data, PGA Professionals, NGCOA owners and other registered users of PerformanceTrak also provide golf fee-revenue data - a Key Performance Indicator (KPI). In addition to golf fee revenue, PGA professionals participating through PerformanceTrak on http://www.pgalinks.com also report merchandising revenue, food & beverage revenue and total revenue. These four KPIs are reported both in median dollars and median revenue per round. In 2008, despite the fractional decline in average rounds played, there was a slight increase in three of the four revenue metrics collected and reported, including:

2008 Key Performance Indicators (KPIs)

In addition to rounds played monthly data, PGA Professionals, NGCOA owners and other registered users of PerformanceTrak also provide golf fee-revenue data - a Key Performance Indicator (KPI). In addition to golf fee revenue, PGA professionals participating through PerformanceTrak on http://www.pgalinks.com also report merchandising revenue, food & beverage revenue and total revenue. These four KPIs are reported both in median dollars and median revenue per round. In 2008, despite the fractional decline in average rounds played, there was a slight increase in three of the four revenue metrics collected and reported, including:

* YTD 2008 median golf fee revenue per round was up 1.7% supported by the ability to maintain rates during the high volume portion of the season. YTD 2008 median golf fee revenue dollars were up 0.7% for the year. This increase in gross golf fee revenue dollars reflects the combination of two factors, rounds played and rates, where in 2008 the rate component on the plus side outweighed the volume decline.

* YTD median merchandise revenue per round was down 2.4% and was the only PerformanceTrak revenue KPI showing a decline in 2008.

* YTD 2008 median food and beverage revenue per round was up 1.6% and was in line with the golf fee revenue per round increase compared to 2007.

* YTD 2008 median total revenue per round was up 1.5% driven by the increase in the 2008 golf fee revenue component.

2008 Regional Observations

In addition to the national data, the following is a snapshot of golf performance in select regional markets:

Several states in the Midwest all reported significant declines in YTD rounds played, but even more significant declines in days open. These states include: Ohio (-2.2% rounds played, -4.1% days open), Michigan (-2.1% rounds played, -5.4% days open), Iowa (-9.0% rounds played, -9.3% days open), and Wisconsin (-4.6% rounds played, -5.7% days open).

Oregon (2.6% rounds played, -0.9% days open) and Washington (4.8% rounds played, -2.7% days open) in the Northwest each experienced an increase in rounds played, in spite of their days open being down, which indicates more play per day open.

Texas (7.8% rounds played, 3.6% days open) and Oklahoma (5.6% rounds played, 4.3% days open) both had increases in rounds played as well as days open Hawaii (-5.2% rounds played) experienced a rounds played decline, which could be attributed to the fact that this state is dependent on tourist rounds that is associated with significant travel expenses.

2008 Performance Factor

The Performance Factor is an index of rounds played per days open. PerformanceTrak collects days closed and reports days open with each monthly data collection effort. Therefore, with 2008 rounds played down 0.9%, while days open were down 0.7%, the Performance Factor is 99.8. A Performance Factor of 100 represents a perfect match of rounds played performance, based on days open for play, a figure over 100 reflects performance better than the weather, and a figure below 100 reflects performance not as good as available weather and days open for play.