Dear Ms. XXXXX: Pursuant to your request for a detailed analysis of your tee time reservation policies, we have prepared for your review six (6) binders that synthesize the results of your operation for the period July 1, 2003 through June 30, 2004. In Appendix A, our findings are presented. In summary, I believe that there are many alternatives available to ensure greater equity in allocation while ensuring revenue maximization based on a revision of your existing policies and procedures. Our recommendations include: The implementation of a web based reservation system in which golfers are able to make reservations after residents are first accorded the opportunity to book a tee time via the touch tone telephone.
Expansion of the number of telephone lines accessible by golfers via the touch tone telephone from eight (8) to ten (10) lines.
The introduction of touch screen kiosks that facilitate the capture of golfers' names and email addresses.
Participation in the national On line Internet Reservations, which over $8.0 million in tee times have been booked on line.
Additional training for the golf staff. It is disappointing but after three years, their understanding and use of the software is marginal. All of the reports that have been prepared were available within the software as currently installed. The willingness and technical ability of your staff to use the software correctly remains an open issue.
Change of reservation policies to extend securing tee times via a credit card to additional golfers beyond those not just those not-registered, implementation of yield management tools to ensure certain blocks of tee times are allocated for residents, seniors, etc., requiring the individual that makes the reservation to appear with the group, issuance of photo ID cards for City and County residents, and perhaps limiting the number of rounds to 15 rounds annually, an individual golfer can play on Course A to ensure better distribution of tee times to a wider group of golfers. Currently, 56% of your rounds are played by residents only account for 22% of your revenue.
Better enforcement of your existing policies and procedures as we noted a 29% variance rate with the City's current cancellation policies.
The reports prepared are comprehensive. We would be glad to discuss them with your staff. However, because the number of possible permutations of this data is unlimited dependent upon a user's quest for specific information, in equity, should further guidance be desired, it would be our pleasure to provide the additional information at a discount to our current standard rates. Heretofore, it has been our pleasure to prepare this analysis on a complimentary basis and I have attached an invoice noting the value of the services we have donated to the City's Parks and Recreation Department. Thank you for the opportunity to serve you. Sincerely, James J. Keegan President
Appendix A Report Findings November 8, 2004
Period Covered by Findings: July 1, 2003 through June 20, 2004
The Client's Golf Operation (CLIENT) generated $9,656,150 for the period of July 1, 2003 through June 20, 2004 of which 48% was paid in cash by the customer.
The POS System is being incorrectly used as reflected by 51.6% of all greens fees sold are being processed without identification to a specific customer type.
A summary of rounds played would reflect:
Rounds sold on all courses | Rounds | Explanation | Based on SKU including booking fees | 335,221 |
| Based on SKU eliminating booking fees | 323,183 | 12,083 booking fees classified as rounds played | Based on reservation system statistics | 271,980 | 51,203 rounds booked through POS for walk up play. |
The City's best customers as measured by the top 24 SKU's generate 61.1% of the revenue but only play 26.2% of the rounds.
The City's "worst customers", principally senior citizens and residents, play 56.3% of the rounds but only account for 22.1% of the revenue.
The average yield per green fee for all courses, all golfers is $28.21 per round. Eliminating the 12,085 booking fees posted incorrectly, increases the yield per player to $29.88 per customer. It should be noted that Course A yields $39.89 per player with hotel packages earning $93.94 per player while consuming less than 1% of the rounds played at the course.
Rounds booked per reservation, 2.90, is comparable to national average.
The City had a total of only 11,127 distinct golfers appear at their facilities from January 1, 2004 through June 30, 2004 as reflected below:
Course | Distinct Number of Golfers | Course A | 4,834 | Course B | 5,361 | Course C | 2,884 | Course D | 1,816 | Total | 14,895 |
With 14,895 distinct golfers visiting each course and only 11,127 distinct golfers in the aggregate, your average customer plays 1.34 of your golf courses.
The utilization of the golf courses is not at capacity:
Course | Weekday Utilization | Weekend Utilization | Course A | 64.85% | 75.95% | Course B | 58.65% | 59.64% | Course C | 49.34% | 63.96% | Course D | 42.56% | 44.21% |
The average reservation is made 24.68 days in advance of the day of play with some of the 42,170 non resident made as far in advance as 248 days.
Course | Percentage of Reservations > than 7 Days | Course A | 44.2% | Course B | 31.8% | Course C | 17.5% | Course D | 7.0% |
The Top Customers by dollars spent include:
Customer Name | Dollars Spent | Average Per Visit | Golf School | $366,271 | 1,711.55 | Hotel 1 | $174,645 | 10,915.31 | Hotel 2 | $64,325 | 10,705.83 | DBL Shotgun | $43,200 | 10,800.00 | Ladies Club | $36,026 | 20.69 |
The Top Customers by dollars spent per visit include:
Customer Name | Number of Visits | Average Per Visit | Hotel 1 | 1 | $30,493 | Hotel 2s | 1 | 24,235 | Business 1 | 1 | 18,000 | Business 2 | 1 | 17,280 | Business 3 | 1 | 15,000 |
Most Frequent Users of the Golf Course:
Customer Name | Visits | Average Per Visit | Ladies Club | 1,741 | 20.69 | 18 Hole Ladies Club | 526 | 18.96 | Golf School | 214 | 1,711.55 | Mens Club | 146 | 78.29 | Golfer A | 129 | 39.70 |
The majority of your rounds arise from golfers who live in zip code 92104. Interestingly, zip code 92037 represents your largest number of registered customers in the database.
Sunday is the most popular day of the week with 40,729 rounds played. It should be noted that the distribution of play between all days is fairly uniform with the slowest day, Monday, playing 36,203 rounds. The tight range between the slowest and busiest day reflects the year round seasonality of your course in a vacation destination.
The touch tone reservation system handled 240,718 telephone calls with the average reservation made in 97.47 seconds. The number of lines installed is insufficient as there were over 6,372 calls made on the "last line" indicating that busy signals abound.
Of the total rounds played, 271,980, over fifty eight percent (58.9%) representing 160,302 rounds are made via the touch tone telephone.
Staff Member 1 and Staff Member 2 booked via the group booking method over 39,314 rounds. In addition, Staff Member 2 via the POS/TTRS (T2) booked an additional 32,370 rounds.
Your customer database contains 104,927 records in which the data captured regarding customer type, state, gender, and city is fairly consistent at over 99% of customer records containing all fields fully entered.
Hotel packages booked have a cancellation policy that rounds not to be purchased may be cancelled 48 hours in advance. This policy is violated 29% of the time with Hotel 1 and Hotel 2 as noted below:
| Res. Canc. | Rnds. Canc. | Res. Canc. < 48 hrs notice | Rnds. Canc. < 48 hrs notice | Hotel 1 | 554 | 2,100 | 187 | 715 | Hotel 2 | 292 | 1,103 | 58 | 216 |
| 846 | 3,203 | 245 | 931 |
|
