OB Sports Golf Management implemented new demand based pricing for a number of their managed courses that is driving results. The demand or utilization based pricing was launched in February, 2013 at a number of OB Sports’ managed courses in Arizona and Las Vegas including Angel Park Golf Club, The Legacy Golf Club, Stallion Mountain Golf Club, Painted Desert Golf Club, Las Vegas Golf Club, Eagle Mountain Golf Club, ASU Karsten Golf Club, McDowell Mountain Golf Club and Raven GC – Phoenix to name a few. Expansion of this pricing strategy was rolled out in Southern California, Biloxi, and Orlando in March, 2013.

This new strategy involved pricing adjustments that are based on utilization of a given hour (as utilization increases pricing increase for given tee times) along with other special offerings that only were offered during lower demand periods (which also get phased out as demand increases).

“Our approach to demand based pricing is a departure from last minute deep discounts for spaces still available in the prime time, just to fill the space,” stated Phil Green, Chief Operating Officer and Principal of OB Sports Golf Management. “Instead we took the opposite approach and actually raised rates as demand increased. We believe those precious remaining tee times should and can demand a premium at the right times of the day. We are pleased to see that this methodology is actually proving to be true,” added Green.

The new pricing strategy was executed on line, via the courses official websites, specific golf course mobile tee time apps utilizing and phone reservations through the OB Sports Reservation Center. OB Sports Golf Management has also published a yield management and demand based pricing “Best Practices” handbook for their facility managers to utilize to source proven concepts and apply those to their facilities and their respective markets.

The facilities utilizing this strategy have already realized enhanced results. Two courses in Las Vegas realized 27% and 11% increases in green fees revenues for the month of March over the same month during the prior year. Courses in Arizona realized not only captured increases in green fee revenues but also an uplift in average green fees paid. For example, one OB Sports managed facility realized an average green fee rate increase of over $4 (from $76.63 in March of 2012 to $80.83 in March of 2013). Another resort-oriented club saw average green fees grow over $2 (from $100.69 in March of 2012 to $102.87 in March of 2013).

“If a club can grow their average rate by a few dollars spread over 40,000 rounds or so, it can make a significant impact to both the top and bottom line,” added Green. “That being said, these increases in average rates and green fee revenue enhancements will continue to provide a tremendous benefit to our courses and their respective owners.”

OB Sports Golf Management is a diversified, golf-oriented company with a long history of success. OB Sports manages premier golf courses and country clubs throughout the United States. Known for its comprehensive and personalized services since 1972, OB Sports has become widely acclaimed as the leader in boutique-style golf course management. For more information about OB Sports Golf Management, visit www.obsports.com or call 480.948.1300.