Module 4:
Golf Based Resorts
and Specialty
Resorts
After this lesson, you will be able:
Learning To identify key elements in the development process that
maintain a balance between the physical capacity of a golf-
Objectives: based resort and the economic needs of the developer.
To identify the changing trends and demographic profile of the
market for a golf-based resort and destinations.
To identify the current and changing trends in resorts.
Courses are either private, daily-fee, or municipal.
Private courses are open only to members and their
guests and generally offer lifetime tenure with monthly
dues. In 1990 in the US, private courses accounted for
about 5,200.
Daily-fee courses accounted for 6,500 (and are the fastest
growing category).
Municipal owned courses accounted for about 2,200.
Typical course configurations include:
1 2 3 4 5
Core course Single fairway, Single fairway, Double Double
continuous with returning fairway, fairway, with
nines continuous returning nines
• Core Course: The most basic and oldest design where holes are clustered
together. This layout consumes the least amount of land but offers the lowest
flexibility for surrounding development. Holes can be arranged in a continuous
loop or as returning nines.
These terms describe the
five basic models for golf
course routing and layout, • Single Fairway, Continuous: Holes are strung together in one long, single-loop
sequence. This layout typically requires about 175 acres and provides the most
which are chosen based frontage for real estate development (approx. 46,800 feet).
on land availability,
development goals, and • Single Fairway, with Returning Nines: Similar to the continuous version but
the desired player divided into two 9-hole loops that both start and end at the clubhouse. This is
more convenient for players who only want to play a half-round.
experience.
• Double Fairway, Continuous: This design places two fairways side-by-side in a
single 18-hole loop. It is more land-efficient than single-fairway designs, using
roughly 150 acres, but it offers less lot frontage for housing.
• Double Fairway, with Returning Nines: Combines the land efficiency of the
double-fairway layout with the operational flexibility of two separate 9-hole
loops. It typically requires a minimum site width of 500 feet between developed
areas
The basic types of courses include Typical, executive, and
[Link] are further grouped by size, type of operation,
layout, topography, location, and difficulty.
Basic Types • Typical courses have a par 72 with a course length of
6,300 to 6,700 yards.
Of Courses • Executive courses have a par of 58 to 68 with a length of
3,000 to 4,500 yards covering 40 to 75 acres.
• Par-3 courses have a par of 54 and a length of 2,000 to
2,500 yards covering 35 to 45 acres.
Fairways, the largest area of a hole, are 45 to 65 yards
wide. Greens, a smaller component, range in area from
3,000 to 5,000 square feet, however, greens require more
careful subsoil and drainage preparation. Moreover, they
tend to be a key item in the rating of a golf facility.
Proper clubhouse sizing also is key: sizes range from
1,000 to 20,000 square feet. Inappropriate sizing,
however, is common. Overbuilt clubhouses can be
recognized by looking at their revenue centers: 1) the pro
shop; 2) food and beverage sales; and 3) car rentals.
Units of comparison include pro shop sales per member
or per round, food and beverage sales per square foot or
per round, and car rental per member or per round.
• Qualitative course differences include playability,
aesthetics, condition, reputation, and location. The site
quality is determined by size, shape, topography,
accessibility, vegetation, and utilities (especially water).
On-site water for irrigation is essential, because public
water tends to be too expensive: an 18-hole course may
use 250,000 to 500,000 gallons per day. Although barely
visible, the irrigation system is crucial. One, therefore,
Quality should become knowledgeable about the different
types; line lengths; number of sprinkler heads, valves,
Considerations pumps, and wells; as well as the capacity of the water
storage.
• Course capacity utilization, itself, is measured by
determining the potential number of rounds of which a
course is capable and comparing that to the actual
number of rounds of play it receives, similar to
determining the occupancy rate of a lodging facility.
• Golf industry leaders are concerned that the number of
future golfers will decline. Issues most likely to impact
Trends in Golf business are the number of rounds and player retention.
Water management is the major environmental issue
Industry facing the industry. Many courses are utilizing water
conservative technology.
There are seven segments of golfers’ core, seniors,
women, juniors, highly skilled players, private club
members, and high spending golfing households. In
2002, 11 million golfers took an overnight trip that
included golf. There are more than three times more
male golfers than there are female golfers.
The profile of the average golfer is:
• Male
Demographics
• Around the age of 50
• College graduate
• Household income between $100,000 and
$149,999
• Plays about 60 rounds per year and has been
playing for roughly 22 years
• Average score of 88.4
• Male golfers spend slightly more than female
golfers on golfing
Revenues and Expenses
• Most revenue comes from annual fees and
green fees. The second most important
source of revenue is from golf cart rentals
while the greatest expense is the cost of
merchandise sold, followed by the cost of
food and beverages. Payroll is usually the
largest expense category.
Profit-Generating Capability
• The course should be built for all golfers.
Variations in handicap can be accommodated
by placing multiple tees at different distances
from the hole. Tee placement also depends
on the amount of play. The more the course is
played, the larger the tees.
Solutions to Financial
Problems
1. Women friendly courses can:
• Vary tee locations to allow the option of playing
a harder or easier course.
• Feature holes in the 5,600-to-5,700-yard range.
• Provide holes where players do not have to
carry the ball over a lot of obstacles.
• Where greens can be easily reached.
• Where forward tees are closer to the hole and
allow for a better angle at the green.
2. Banquets
• Can be an excellent way to bring in
additional revenue.
• Golf tournaments are a good market to
advertise to.
• Pre-game lunches, box lunches, post-
game dinners, or cocktail parties have
proven successful.
• Social events are the most financially
profitable segments, including
weddings, bar mitzvahs and
anniversaries
• Margin Enhancers include discounts, rebates, fitting
fees, advertising co-ops, freight programs, or free
product accounts.
• The key to increasing sales in the accessories section is
3. Pro Shops in the presentation of items. Keep displays neat, use
color effectively, develop a theme, cross merchandise,
and avoid one level displays.
• Controlling inventory can cut down
costs.
• “Open-to-buy” refers to the amount of
retail dollars set aside for the purchase
of merchandise in the future.
• Old sales figures are used to project
future sales.
4. Inventory Control • Merchandise group departments are
created.
• To maintain control of the system the
two important pieces used to determine
beginning inventory levels are projected
sales volume and the turnover rate
desired by the shop.
5. Credit Cards
• Accepting credit cards
makes the purchase easier
for the customer.
• Retailers pay a fee to credit
card companies when they
accept credit cards.
• In selecting a site for a tennis court, you should consider the
following: climate, an acre of land can, theoretically, accommodate
six single courts, each 60 by 120 feet. This crowded configuration
would make for a very unpleasant experience. A dark background
Tennis
behind the players helps them see the ball.
• Private outdoor tennis club can handle between 30 and 60
players per court. Capacity can be increased by one-third by adding
Courts
lights. A reservation system helps push capacity closer to the upper
figure of 60 players per court. Tennis courts tend to be developed in
clusters. Maximum efficiency when courts are developed in clusters
of eight or ten. Objective in orienting the course is to avoid players
having the sun in their eyes.
Fast drying
• Expensive
Types of • High maintenance
• Annual resurfacing
Tennis
Courts: Clay
• Less expensive to build
Porous • Last long
• Play slow
• High maintenance
Grass
• Look good
• Daily maintenance
• Susceptible to damage
Types of
Tennis • Long lasting
Courts: • Easy to maintain
Nonporous • Dry quickly
• Non-cushioned play fast and are hard on legs
• Player comfort
• Synthetic turf long lasting
Specialty Resorts
Nature Based Environmental Activities The goal is to learn about the interdependence Growth in this area has meant that programs
of living organisms or to learn how to behave in are taking on increasingly complex issues,
the environment. covering economic as well as technological
aspects and their impact.
Trails
Changing Trails can be classified as: primitive,
Trends
minor, major, walks, or special purpose
trails.
Three elements are important in the
development of a trail function of the
trail, relation of the trail to others in the
area and relation of the trail to other
facilities
An enthusiastic form of nature-based tourism
Ecotourism
Ecotourism areas should minimize negative
effects on the local and natural environment,
contribute to the management of protected
areas, produce economic and social benefits,
promote genuine interaction between hosts and
guests and should supplement and complement
traditional activities of the area.
Ecolodge
A specialized form of resort lodge. Defined as a “nature-based tourist lodge that
meets the philosophy and principles of
ecotourism”.
General Enthusiasts
Demographic • Usually, men with some college
Profile education and no children under 12
years old
• Most likely to take adventure trips and
want to arrange his own trip traveling to
non-American destinations.
Upper High Naturalists
• Members are mostly middle-aged, married and earn high wages.
• Prefer both soft and rugged adventures.
• Likes to travel with family and friends.
• Seeks novelty trips and exotic destinations.
Family Vacationers
• Married males in this category are not usually very excited about their vacations
• Family vacationers have generally completed some college and have two incomes in the household to support their
children, at least one of which is under age 12
• This group likes to have some help in planning their vacations.
Active Soloists
• Composed mostly of well-educated middle-income-earners without children under 12.
• Prefers high-risk, high-adventure activities.
• Prefer to travel alone or in an organized group.
• This group seems to rely on tourist infrastructure the most when making travel arrangements.
Comparison and Contrast of Traditional Lodges and Ecolodges
Traditional Lodges Ecolodges
Luxury Comfortable basic needs
Generic Style Unique character style
Relaxation focus Activity/educational focus
Facility-based activities Nature/recreation-based activities
Enclave development Development integrated with local environment
Group/consortium ownership common Individual ownership common
Profit maximization based on high guest capacity, services and prices Profit maximization based on strategic design, location, low capacity,
services and prices
High investment Moderate/low investment
Key attractions are facility and surroundings Key attractions are surroundings and facility
Gourmet meals, service and presentation Good/hearty meals and service, cultural influence
Marketed within chain Marketed
Independently
Guides and nature interpreters’ minor Guides and interpreters focus of operation
feature or nonexistent.