Not so long ago, before rigorous corporate expense scrutiny and time poverty infused the business process, golf was an essential part of many meetings and retreats agendas. It frequently took up as much—or more—time on an event program than did serious business segments. Golf courses sprouted across the continent at warp speed in response to the game’s popularity and the economic boom times of the 1990s.
According to the National Golf Foundation (NGF), golf course construction peaked in 2000. Demand for golf rounds then drifted downward, and some regions experienced multiple course closings. According to NGF, course closings in 2006 exceeded openings.
Suzanne Woo, founder of BizGolf Dynamics in Berkeley, Calif., and author of On Course for Business—Women & Golf, says the downturn in golf can be blamed on an oversupply of courses and a lack of player time commitment.
Woo, who advocates the game of golf as a business networking and relationship-building tool, says the sport is a way to troubleshoot issues with clients, meet people and get business referrals.
“Everyone can participate,” she says. “They just need to know how to do it.”
Does the recent downturn mean there’s a buyer’s market out there today for groups who would include golf in their event programs? The answer seems to depend on what region or properties are under consideration.
Some say golf buyers have the upper hand now. Others say demand for golf is strong, even escalating, and those in search of good golf deals need to be just as strategic as ever. Luxury properties with the best courses and services are still in high demand, they say.
Integrating golf in programs these days may impose a variety of challenges on planners who want to organize an effective event with good pace and variety.
Weather is one thing. Outside sunny climes in the southern tier of the continent, there is a short season for outdoor golf play. Storms are a factor even in some sunny regions. There is also the issue of competing diversions.
“You offer golf as one activity,” says Rob Hard, president of RH Communications Inc., a Chicago marketing and event management firm, “and it’s competing with other options like spa and culinary and wine activities.”
When other choices trend up, he says, golf declines.
Golf remains a popular and effective business networking tool, however, and more than a few consultants and other advocates promote its use for business productivity and fulfillment of objectives. Planners and participants just need to know how to manipulate it beyond the play, they say.
There are many activities other than time-consuming tournaments, they advise, that are user-friendly for both experienced and novice players (see sidebar).
“Golf remains a favorite activity of nearly every corporation and organization,” Hard says. “And why not? For corporations, a golf event allows hosts to have a captive audience with decision-makers for as much as an entire day. For nonprofits and associations, it also serves as a key activity that creates opportunities to interact with their membership or even raise a significant amount of money for the cause.”
Where the Bargains Can Be Found
Destinations where groups can find golf bargains now include Myrtle Beach, S.C. Jim Kass, director of member research and communications for NGF, says the destination was so overbuilt with golf courses that it had 14 18-hole course closures in 2006 alone.
Others see a change in the market. Mickey McCamish, president of Myrtle Beach Holidays, a company that markets the destination globally as a golf destination, says his segment of Atlantic beaches was a buyer’s market through last year, but the situation has turned.
“We are still at 101 courses, and two new 18-hole courses will open here in the spring,” McCamish says. “We’ve gone through a period of adjustment, and now our rounds per course are the highest they’ve been since 2000. It’s a win-win for those who’ve chosen to remain in the golf business.”
At Myrtle Beach’s Wild Wing Plantation, Director of Golf Dave Harbaugh says he still sees buyer bargains. His resort, with meeting space for up to 200 attendees went from four 18-hole courses to one when the resort’s new owners began developing a residential community in place of the greens.
Since the reduction, demand for tee times on Wild Wing’s single course has ramped up, he says, and for higher prices.
“Myrtle Beach is still a buyer’s market though,” Harbaugh says. “There are more new golf courses per square mile than in 90 percent of the country, and many of them are competing aggressively on price alone. My advice to groups who book here is to reserve a hotel along the beach, and drive wherever you need to go for golf–off property.”
Peaks and Valleys
Andrew Pepper, president of NationWideMeetings and Corporate Golf Planner in Las Vegas, says many resorts have peaks and valleys with or without golf.
Prices often depend on the season, even in popular golf destinations like Southern California, Arizona, Texas, and Florida, he advises. But Florida in January can be good bargain pickings because few groups meet right after the holidays, he adds.
“Palm Springs and Rancho Mirage can be good bargains in summer, of course,” Pepper says.
Resorts that have modernized or built a new clubhouse, added a training area or set up partnerships with local hotels often discount golf outings, says Bill Storer, president of Business Golf Strategies and Storer Golf Photography, in Basking Ridge, N.J.
“The market has become saturated,” Storer says. “Yet I don’t see a buyer’s market. There’s always negotiating room with the prime properties, and there are sites like Fiddler’s Elbow Country Club in central New Jersey that are good to consider.
“It’s a corporate membership club with three 18-hole courses, conference facilities and other business amenities that’s existed for over 25 years,” he continues. “They’re spending millions to modernize the clubhouse and courses. Plenty of hotels are in the vicinity. Of course, using an off-site golf venue like that one often means transportation costs, so planners need to look at the whole expense picture.”
Strategy Wins
Expenses are one consideration, timing is another, says Judi Helfich, director of sales for The Westin Bear Mountain Victoria Golf Resort & Spa on British Columbia’s Vancouver Island.
“Spring and fall in our area are the best times to take advantage of good pricing on all the components of a meeting—rooms, meeting space and golf. The weather is great and pricing is typically lower,” Helfich says. “The thing planners need to recognize is that in order to include a round of golf in their schedule, they will need to allow five hours on a course, sometimes more, depending on the pace of play. Planners typically schedule meetings and social events first, and then try to fit a golf component into their schedule without realizing it’s not very easy to move a block of tee times.”
At Nemacolin Woodlands Resort, on 3,000 acres in Pennsylvania’s Laurel Highlands, golf is a major attraction, along with a number of other activities like clay shooting, off-road driving, fly-fishing, and a stand-alone spa.
Beth Dalson, group golf sales and event coordinator, says her property doesn’t deviate much from the play rates that get set every season. But the sales department sometimes offers an all-inclusive package for groups.
“One way some groups include golf with a team-building approach,” she says, “is to combine nine holes on one of our resort’s two 18-hole courses with nine stations on the clay shooting course.”
Off-site and second-tier resort courses may be the best choice, according to RH Communications' Hard. “If you want a challenging course for lower rates than the resort, going off-site might be your best answer even though you may need transportation for, say, a 30-minute ride. While there is a big demand for luxe properties, the second resort tier are reducing prices and they may work with you.”
Golf book author Woo advises to seek courses that accept less than 18-hole tee times to save both time and money.
“Too often, course managers hope for 18-hole players and they hold out,” she says. “I would look for those courses with more flex—especially the stand-alone courses. Some of them will offer nine-, six- or even three-hole times.”
So whatever the market, buyers still find the best deals when they study the landscape and line up their strategies to ensure good return on investment with golf.
