The Hidden Discount
If you're not running at ideal capacity, then you're running a discount program, even if you don't explicitly offer discounts.
Average Revenue Per Available Tee Time
Using a simple formula, you can see the real picture:
Average Revenue Per Available Tee Time = Total Revenue / All Available Tee Times
Example: 70 of 100 tee times sold at $50 each equals only $35 per available slot. That's a $15 implicit discount on every tee time you have available.
Why Courses Reject Discounts
Courses typically reject discount programs due to negative outcomes: attracting price-sensitive customers, lowering average revenue, converting full-price rounds into discounted ones, and poor return on marketing investment. However, this assumes broad, unsegmented approaches using Groupon, newsletters, and coupon booklets.
The Fix: Segment and Restrict
Effective discounting requires:
- Targeting only tee times that won't lower averages
- Identifying specific customer profiles
- Using cost-effective distribution channels
- Tracking ROI metrics
- Testing repeatedly with different populations
Focus on filling unused tee times within 24 hours of play to minimize cannibalization of full-price bookings. No revenue sharing, no upfront costs, minimal maintenance.