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Golf courses have many submarkets within the same geographic area. This means the market segment that a golf course can serve must be known in order to estimate value, forecast feasibility, or complete a market study for a specific course or the general market.
The segmentation analysis starts with the premise that a golf course submarket is grounded in the customers it serves.
Thus, a submarket is defined by two predominant factors. First, who are the demanders for the specific course under study? Second, where Is the competition for this demand? This article presents a description of the basic characteristics of the golf course submarkets.
Many golf course assignments are commissioned to address questions regarding the feasibility of a new golf course, the current market value of an existing course, how a course may increase market penetration, or whether a market is oversupplied. To begin a study for any of these types of assignments first requires a determination of which golf market to study.
Golf courses, like other real estate categories, have many submarkets within the same geographic area. This article presents some basic concepts for identifying the segments of the golf market.1
Importance of Segmenting Golf Course Markets
A central part of any study is the market/marketability analysis. Market segmentation2 becomes critical since it focuses the remainder of the study, as shown in the following outline of the study process. An incorrect conclusion of the golf market segmentation in this first step would make the remainder of the study meaningless because the study would be measuring the wrong demand and competition group.
Evolving Nature of Golf Market Segmentation
Golf is consumer driven, and has changed over the years because of changes in consumer demand. Consumers change over time in terms of location, preferences, income, and general demographics. Golf courses, like other real estate types, are affected by these changing trends.
For many years, the golf market for the most part was divided into two segments: low-budget courses (usually owned and operated by municipalities) and private country clubs. The private country clubs provided higher quality design and course maintenance, with more facilities and better services than the public, low-- budget courses. In the 1980s, a trend started called "A Country...