Yield Management uses the basic strategy of providing the right service at the right time to the right customer at the right price.

During times where there is huge economic uncertainty, companies are generally focused on cost containment and cost cutting. However this has limited impact in those industries like running golf courses where so many expenses are relatively fixed. As level of service and value for money are primary factors in choosing where to play, golf clubs focusing energy and resources on increasing revenues have the best chance of success.

So what tools do courses have at their disposal?

One such tool is yield management, often referred to as revenue management, which is the business practice of maximizing financial yield through control of inventory levels and pricing. This practice is most applicable to those industries having fixed capacity and perishable inventory – like hotels with unsold rooms and airlines with empty seats.

In the golf industry, the perishable inventory is the time during which a hole is available. If a hole is not occupied for a period of time, it perishes without generating any revenue. Operators need to focus on filling up tee times, or in other words, increase utilization. There are opportunities for courses worldwide to improve on this metric. Focusing solely on utilization is not the complete answer to improving profitability; however it is a key lever for course operators to focus on.

From: Maximizing Course Usage