Notes On ' Yield Management ' The Golf Industry ' Essay

1365 Words Dec 11th, 2015 6 Pages
Yield Management in the Golf Industry Revenue management has been addressed in many areas such as airlines and hotels to address problems in their timing and planning of pricing and overall yield management. So why hasn’t this similar practice come to the golf industry? The golf industry has a lot of similarities to the hotel and airline operations and should start to apply some of their yield management techniques to their everyday operations. First we will want to look at what exactly revenue management is. Revenue management is defined as the application of information systems and pricing strategies to allocate the right capacity to the right customer at the right place and the right time. In general it is letting customers find a deal in off peak times that allow them to pay less, while on the other hand customers that want to purchase at peak time will be paying accordingly. You want to apply such a technique to places that have relatively fixed capacity, predictable demand, perishable inventory, appropriate cost and pricing structure, and demand that is variable and uncertain. The first area that we will be looking at is relatively fixed capacity. You can look at the overall capacity of a golf course by looking at its size, how many holes it has, and how long it is open per day. Most golf courses only look at filling the tee sheet and creating revenue through gatherings in the dining area. The amount of tee times that you can have per day is usually a…

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