FOCUS TODAY - May 2004
The exceptions seem to be victims of a poor local economy and other factors over which they have little or no control.
All Clubs (170 responses)
Do you expect the current fiscal year to be better economically for your club than the previous year?
What will your club spend on capital improvements this fiscal year?
Clubs by category: Golf/Country (139 responses)
Why do you think the club’s business will be better this year?
Improving economy and an election year. Local economy has improved.
General feeling that “things are getting better” has led to an increase in booked functions and the ability to raise food and beverage prices after holding prices for the past three years. A more positive attitude among members and prospective members.
New clubhouse. Another club plans $6.2 million in improvements in 2005. Clubhouse renovation and golf course restoration has led to a full membership and a waiting list at another club. Still another club spent $8 million on renovating the clubhouse and golf course, and added 88 members on expectations of using the updated facilities.
No competition in the area. Another club is doing better because a neighboring club closed.
More parties, more banquets, more tournaments…better weather
Renewed member confidence and optimism mentioned several times
Introduced more family packages for food and beverage. Scheduled more golf events for members at reduced rates.
Saved money by outsourcing maintenance and back-office duties.
Rising stock market. A boom in property values
General comments: “It can’t be worse than last year.” “The only unknowns: The effect of another terrorist attack and the continued high unemployment rate.” “Members are realizing the club is a good value when compared to their other options.” “Members have adapted to the ‘new economy’ as it is today.”
Why do you think the club’s business will be worse this year?
Weak local economy and the national elections.
Still recovering from the shortfall of last year caused by weather and the economy
Economy is still stagnant…unemployment is still high
Fewer members
Higher labor costs
Aging membership and no good sources of younger replacements. Competition from more golf courses in the area. ”We lose business to newer-looking facilities”
General comments: “Baby boomers are not buying equity like their parents did.” “Any negative major event in this area (CT) could set us back as did 9/11, although I don’t think the effect will be as great simply because we have been exposed to terrorist acts and the shock value is diminished.”
Clubs by category: City/Athletic (20 responses)
Why do you think the club’s business will be better this fiscal year?
Local economy is strengthening.
Market conditions have improved.
More money being budgeted for leisure travel.
Stronger private party and banquet business.
More use of fitness and lodging facilities.
More food and beverage business the last quarter, “and we expect this to continue.”
Aggressive marketing has offset a decline in membership.
Revenue may not be better, but “significant adjustments” have been made on the expense side.
Why do you think the club’s business will be worse this fiscal year?
Banquet business down for last quarter (by 30 percent at one club)
Less appreciation of “club values” among the members
Poor local economy and increasing competition
Decline in business-sponsored functions
Clubs by category: Other (11 responses)
(includes yacht and tennis/beach/swim clubs)
Improved marketing of club.
Economy is improving for the members.
More member use of the club.
Long-range $1.2 million plan to rebuild swimming pools has sparked interest.
Location…club is in an affluent resort area.
Decline in private party and banquet business.
Uncertain economy and the war in Iraq.
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