by Tom Blakeman, July 6, 2019
On Monday, July 1st, 2019, Granada Golf Course, our ‘flagship’ course, was practically empty at about 10:30 am. The parking lot had few cars. The restaurant was totally empty. Yet, a few days before Golf Now (public booking portal) had our pricey outside player rates posted (18 holes) for $79.00 per player (morning prime time) plus a ‘convenience’ fee of $2.49 per player plus tax. That would be nice revenue – if you could get it – but we were not.
On Wednesday, July 3rd, 2019, Golf Now had one Granada 10:28 am tee time posted for Saturday, July 6th, 2019, at $72.00 per (a big discount!). All the other morning tee times posted (15 of them) were at $79.00 per player (4 players – 18 holes) plus the ‘convenience’ fee of $2.49 each, plus, of course, sales tax. The afternoon tee times posted (36 of them) were all at $50.00 per player plus the ‘convenience’ fee, plus tax.
Also on Wednesday, July 3rd, 2019, Golf Now had, for Cortez Golf Course, for Saturday, July 6th, 2019, 34 morning tee times available at $65.00 per player (18 holes) plus the ‘convenience’ fee of $2.49 each, plus tax. The afternoon tee times posted for Cortez (38 of them) were all at $45.00 per player plus the ‘convenience’ fee, plus tax.
For the same date (July 6th) our own POA Member site displayed the same numbers of tee times available on each course (Granada and Cortez) for Members here in HSV. Apparently any available tee time is displayed on both sites (public and private).
Meanwhile, for the same dates (July 3rd booking for July 6th), nine other golf courses (all outside of HSV in a 50 mile radius) had tee times posted all day long with a maximum cost of $40.00 per player (4 players – 18 holes) plus the ‘convenience’ fee of $2.49 each plus tax. Rates actually ran as low as low as $27.00 per player per round plus the fee and tax for afternoon times. Keep in mind that our “Championship Courses’ are far superior to any others – POA party line.
Flash forward now to the actual date of play, Saturday, July 6th, 2019. At 8:25 am Golf Now had the same pricing as noted earlier and the following availability for Granada for that same (now current) day:
Eleven morning tee times (4 players – 18 holes) and 35 afternoon tee times. Meanwhile, the POA Member site showed 11 morning and 35 afternoon tee times available. Apparently, since July 3rd POA had sold only 4 tee times for our ‘flagship’ course using our ‘Premium Pricing’ model.
Similarly on July 6th, at 8:25 am Golf Now had the following availability for Cortez for the current day: 18 morning tee times and 33 afternoon tee times. As was the case with Granada the pricing on Golf Now for Cortez was the same as noted above. Meanwhile, POA Member site showed 21 morning and 35 afternoon tee times available. So, again this apparently suggests POA sold only about 16 tee times using our ‘Premium Pricing’ model.
Looking at this from another perspective each day on each course has a potential of having 8 tee times per hour for 11 hours or 88 tee times available. Using the best case scenario (least number of still available tee times) as of 8:25 am, on July 6th, that means:
• Utilization rate on Granada is only 47.7% overall,
- Morning (7am – 1pm) is 77.1%
- Afternoon (1p – 6pm) is 12.5%
• Utilization rate on Cortez is only 42.0% overall.
- Morning (7am – 1pm) is 62.5%
- Afternoon (1p – 6pm) is 17.5%
The above utilization rates assume that all the booked tee times are foursomes. Tee times that go off with only 1, 2, or 3 players (as is often the case in HSV) would make the utilization rates worse. Consider also that Saturday, July 6th, 2019 was a beautiful, bright, sunny day with no rain and a high temperature of only about 91 degrees.
The author played Granada on Friday, July 5th with eight other players. There were three threesomes. Tee times were around 10 am. We finished up around 3 pm + -. This was a 4.5 to 5 hour pace of play which is seemingly pretty normal for Granada. On many tee boxes, we experienced a wait to tee off averaging about 4 to 8 minutes. When we finished and upon entering the clubhouse/dining room – bar it was observed to be totally empty of patrons. However, the staff, including the POA Director of Food and Beverage, were there. They greeted us warmly and provided great service.
Some takeaways
• The POA “Flex Pricing” / “Dynamic Pricing” model is broken.
• POA “Premium Pricing” concept has also failed.
• Course utilization rates are far below breakeven.
• Lack of promotional pricing for outsiders.
• Insufficient outside play on weekends.
• Tee intervals, particularly in late morning thru afternoon need adjustment.
• The restaurant can’t make it with this level of play.
by Tom Blakeman HSV Resident / Member / Property Owner July 6, 2019
Photography by Joe Dowden
Edited and formatted by Cheryl Dowden
Linda Anderson
07/06/2019 — 4:19 pm
Tom, Thank You for all your effort to get the POA’s attention about “GOLF”. This is so important and yet no step is made to rescue this asset for sports, home values on all courses, and the natural setting of beauty and nature that is so wonderful. It is slow destruction and could tear the village apart. This should be a wake up call for action.
NittyGritty
07/06/2019 — 4:47 pm
As Little Rock is having to close 2 of its 4 municipal golf courses due to insufficient use, it is seeming less likely that li’l ol’ HSV could keep 9 courses going without the subsidies. Golf-specific marketing might fall on deaf ears. Residents who do not golf might like to see a FEW (NOT all) of its courses become privately manicured back yards around an open-space park or community gardens while those clubhouses (but NOT the land they sit on) are sold as independently owned and operated restaurants or cafeterias.
dennis simpson
08/05/2019 — 6:25 pm
WITHOUT subsidies? WHAT ? we are paying $1.2 million PLUS in subsidies.. each year..
Tom Blakeman
07/06/2019 — 6:31 pm
POA cannot even manage to keep our roadsides “manicured” and they don’t police the power companies who are raping the power line right of ways (which are along many road ways). Don’t believe me, just take a ride along North Barcelona Road.
Manicured or otherwise, closing any golf course is a recipe for disaster. You can expect home values on any course where that occurs to take a permanent hit of 30 to 60 percent. The rest of the Village age will follow. Then next we can drain a lake and build condos for all the millennials.
The answer is better management and marketing of our largest asset which is losing the most money. It’s already been proven that we can’t fix this by raising fees and round prices on Members and charging premium prices to those few outsiders who even know we exist. We may have the very best “mousetraps” but very few mice are gnawing their way into our Village.
Marketing + Promotion + Pricing = Revenue
Simple. What we have been doing isn’t working.
Andrew Kramek
07/06/2019 — 7:48 pm
First, I categorically agree with Tom that the flex pricing model is broken. In the summer time the “prime” tee times are those between golf course opening (around 7:00 am) and before 11:00 am – after that the heat begins to get too great for most people. Yet “Tier 1 prices run until 1:00pm and those tee times after 11:00am go largely unused. Tier 2 pricing begins at 1:00pm and offers reduced rates but not really significantly so. Especially when compared to the old “Twilight Golf” model which allowed one to play as many holes as one could starting about 4 hours before sunset. Of course that meant the start time varied throughout the year but most people could cope with that.
So maybe one solution is to go back to the three-tier model. Maybe something like Prime Time before 11:00am. A significantly reduced (maybe 2/3 Prime?) Midday Rate for 11:00 – 4:00 and a “really cheap” Twilight Rate after 4:00pm (Adjust times based on current usage patterns).
Second, All courses run on the same pricing times irrespective of the actual usage patterns. I am not sure that I could accurately predict the differences between, say, Ponce De Leon and Granada but I bet there are differences. One size fits all is rarely a good model for anything other than socks!
Third, I also think that the tee time spacing is too close. All courses run on 8 minutes between tee times. For a foursome the “expected” pace of play is 4 hours – or just over 13 minutes per hole. In other words, on a par four hole. With 8 minutes between tee times it is inevitable that there will be significant wait times on the tees because there are guaranteed to be at least two groups on any hole at any time. All it takes is one lost ball (even with the newly reduced time allowed for searching) and you are immediately starting to back the course up.
I don’t claim to have all the answers but certainly something needs to be done and has needed doing for a couple of years now. Just raising rates (whether green fees or cart rates) on members isn’t going to cut it. However, it seems it will need more than good luck to get some common sense applied to this, or any other, problem around here.
Vicki Husted
07/06/2019 — 8:03 pm
Tom, I’m not a golfer so this may be totally dumb, but since we’re not bringing in any money on those empty tee times anyway, why not try to convince the powers that be to do what smart retailers do–celebrate everything on planet earth with HUGE sales! Since we have a big birthday coming up, why not give our golf courses early birthday presents, which would also serve to promote the celebration?
,
I know some people are hearing-impaired unless you’re talking about their ideas, but thought I’d throw that out there if you want to give it a try. Good luck with whatever you come up with. I’ve been following your efforts and know how hard you’re working on saving our golf courses. Thank you!
NittyGritty
07/06/2019 — 8:31 pm
According to Forbes, developers built course after course across the USA as a successful tactic to sell houses at elevated premiums. They were in the business of building, not operating, golf courses, so they sold or gave away their interest (and LIABILITY) in the clubs. Often, developers pulled out shortly after selling all of the homes in a community and moving on to another location and another new course. Bob Turner of Beaufort SC, in his paper, Sustainability Through Design, had predicted that this spreading of too many golf courses over too few paying homeowners would create an unsustainable burden. Now, as the public becomes wiser to the issue, many homeowners ARE experiencing a decline in value as a course begins to show signs of its death spiral. We each have a responsibility to one another to prevent property values from declining. This is especially true in golf course communities.” This is why I put serious consideration into coming up with suggestions of expanded back yards, parks, and gardens rather than just letting nature reclaim courses. I could not find those ideas anywhere but in my God-fearing heart. I also agree with marketing Hot Springs Village in general to baby boomers. And we could choose to be thankful for subsidies from the POA and stop complaining about them.
Kirk Denger
07/07/2019 — 12:39 am
Let’s go Golfing. Maintenance is the same on the courses whether you have 184 golfers paying $20 bucks or one golfer paying $3,680. Golfing is exercise, lower the rate so that the whole community may benefit. Lower the rent on golf course restaurants, no one goes there because we can get the best burger in the country at the Jessieville Country Club for 5 bucks. Keep raising the rates, but when your $3,680. golfer does not show, our course will be empty. Just because your brains are, doesn’t mean our courses need to be.
Roger Hinz
07/15/2019 — 11:34 am
I would like to see the golf rates reduced also. Lower the rates and you will have as much revenue or even more coming in when the use of the courses will go up. Also the revenue of the restaurants will go up as more and more people are at the golf courses. Raising rates doesn’t spell more revenue from the golf courses. Since the number of players is down, why do we need so many golf carts at each course.
Ludmila Pennington
07/30/2019 — 7:30 pm
Lower the Golf prices, promote four, double and single tee times, promote instruction packages for juniors and adults with free bucket of balls for drive range practice. Food pricing more affordable, Birthday event packages too in the Restaurants.
dennis simpson
08/05/2019 — 6:28 pm
i agree the FLEX price is broken.. what most golfers don’t want to hear is that the ALL YOU CAN EAT.. Annual Pricing .. which call book the premium slots … is broken too.
Look at the usage of the Annual Users and it is (as expected) VERY high… (to make it worth their while) … but should that (DEEP) discount all them to book prime slots in the am ?
Just asking
Arthur J Stefanelli
12/02/2019 — 8:45 pm
My wife and I found HSV while looking for a potential retirement location. We both golf and look forward to a active life wherever we locate to.
We have visited your community and fell in love with what we saw and experienced. We immediately noticed the lack of play on the courses and empty parking lots and restaurants. It has made us pause in our search for a home in HSV.
The rate we paid was in my opinion higher than we normally pay on vacations. I think as potential property owners/golfers the cost of golf will be a factor in our decision.
If courses near you are closing for lack of play. It is coming to your community soon. What I totally agree with is a marketing plan for your beautiful courses that makes people want to drive to HSV and play.
Howard
03/06/2020 — 10:49 pm
I live in Bryant and have owned a lot for years in the Village.
Plans were to retire there.
I at one time would play 1 to 2 times a week mostly late afternoon to take advantage of the reduced cost. As the prices crept up I saw my playing time decrease. It been 2 years now and I just have walked away. Still own the lot and pay my dues.
I don’t understand why it’s better to have the prices higher and turn away so many people. I was part of a group of 8 to 12 guys that regularly made the trip to the village. I only know of 2 of the guys that even bother any more. It was people like me that was willing to be out there in 100 degree weather playing away. Oh well.
HSVP C
05/10/2021 — 4:48 pm
Comments are no longer accepted without a first and last name. Thank you.
Noel Jackson
09/28/2021 — 1:06 pm
I have been a property owner since 1994. Only get a chance to play golf in the Village 4 -6 times a year, keep thinking I will get the chance to play more, but still working and living in Texarkana, Tx, about a 2 hr 15 min trip , one way. However, I have participated in all the Member-Guests Tournaments, a 3 day event held every September, since the beginning in 2001. That week my partner and I will rent either a condo or a house, usually in the $120-$160 per night rates, and in the past those were really nice houses. This year we got a shocking surprise! Apparently the rental businesses have gone to using VRBO for advertising. In the past the listed rate was what you paid, plus tax, and they would temporarily charge a damage fee, but would return that fee a few days later if there was no damage. ( No tournament last year due to COVID). In 2018 & 2019 we stayed in a very nice condo on Lake Balboa , near the spillway for $148/night for three nights plus tax = around $480. This year still listed at $148/night, but with VRBO fees =$669 or $223/night. On all the houses we looked at the pricing was similar, with the actual nightly rate no where close to listed rate. also found a condo listed for $85/night x 3 nights =$255, BUT !!! the actual price $255 + tax $25-50, plus required fees $658.20 = $938.70for a 1.5 bathroom, 2 bedroom, 1025 sq ft. That’s $312/ night. I called the rental business about this and their response was they had no idea it was listed that way! The poor people who own that property probably wonder why they never get any renters. Needless to say we are staying in a motel outside the Village. And people are trying to figure out why there are fewer golfers playing and fewer rentals.
Butch Taylor
01/20/2023 — 11:13 am
I want to play more at your facilities but your rates are too high. I retired here in September of 2021 from Houston. I could play at numerous fine courses Monday thru Friday for $45 or less – senior rates. Even the Country Club in Glenwood charges $65 for 18 holes – no senior rates.
I do not believe golf course managers understand the implications of fixed vs marginal costs and the concept of marginal cost equal to marginal revenue! Most of the costs of a golf course are fixed. You have to mow the greens, rake the sand, operate a pro shop, etc. whether you have 70 tee times or only 20. The marginal additional cost of a foursome playing is almost nothing! Gas for carts, a little wear and tear on the course, etc. Rather than stick with unreasonable prices and earn little revenue – charge $50 per round, and $40-45 for seniors. Get people on the course playing, buying golfballs, buying beer, cocktails after the round, etc. Generate some good vibes.
Additionally, a reputation for “slow” play kills a golf course. Golfers hate it! 10 minute intervals between tee times. And, marshals with gonads!
HSVP C
03/14/2023 — 3:11 pm
Hello Butch, the article you are commenting on is very outdated. We have moved our website. Here is a link to the new site: https://hsvgazette.com/ Thanks!