As we talk to more multi-course operators, we start to learn the profiles of the courses they are targeting. Some operators focus on more populated areas, while others look for clubs in higher-income areas. And for many, the profile depends on the type of course they operate.
A New Way to Look at the Areas Around Golf Courses
We recently added demographic information to our platform to help our customers identify facilities in specific types of areas. To do this, we calculated the areas within a 15, 20, 25, 30 and 45-minute drive of each golf facility. We then analyzed the demographics within those areas, including population, number of households and median household income.
This enables our customers to slice and dice the entire population of golf courses by various demographic data points. But it also allows us to analyze these preferences and profiles across different multi-course operators, or MCOs.
For example, here is a look at the population and median household income within a 25-minute drive of the facilities managed by different operators. Each dot represents an operator and shows the median across its facilities.
Troon and Invited: Two Different Portfolios
One comparison that stands out is Troon and Invited. Troon has by far the largest portfolio in our analysis, with 398 courses, but the median population within a 25-minute drive of its facilities is roughly 283,000. For Invited, that number is more than 413,000. The difference shows up in household income as well: the median household income around Invited’s facilities is nearly $100,000, compared to about $84,000 for Troon.
This makes sense when you consider the types of facilities each company operates. Invited focuses on private clubs, many of which are located in and around major metropolitan areas. Troon manages a much broader mix of properties, including private clubs, resorts and daily-fee courses, across a wider range of markets.
That doesn’t mean every Invited club is in a more populated or wealthier area than every Troon facility. But it does show how the differences in their portfolios can be reflected in the demographics around their courses.
California’s Influence on the National Picture
California shapes this chart much more than you’d think. At first glance, you might think American Golf has a strategy to target golf courses in ultra-populated areas. But a closer look reveals that its position on the chart is heavily influenced by its concentration in Southern California, including the courses it manages for the City of Los Angeles. In fact, 27 of the 40 properties American Golf manages are located in the Los Angeles area.
California has its fingerprints on other parts of this graph as well. JC Golf leads when it comes to median household income, and that’s largely because it focuses primarily on properties in California. When most of your properties are in California, the median household income around your golf courses is going to be quite high.
In fact, Troon’s golf courses in California have a similar median household income to JC Golf’s. The difference is that Troon has hundreds of properties in other states to counterbalance the numbers. JC Golf does not.
Comparing Operators Within California
California’s impact on the national chart was significant enough that we decided to look at California on its own to understand where the largest operators sit within the state. Here’s what we found:
As we expected, JC Golf had a more typical profile once its portfolio was compared to California-only data. However, a few outliers emerge. Arcis’ properties are in wealthier areas, with the median household income around its facilities clocking in at approximately $130,000.
American Golf’s concentration in Los Angeles shows up clearly here as well. The median population within a 25-minute drive of its facilities is roughly 1.4 million people, while the median household income is closer to $100,000.
This is what makes looking at the data from different angles so important. The national chart gives us a sense of each operator’s overall portfolio, but looking at California on its own helps us see how much of that profile is driven by geography. It also gives us a clearer picture of how operators compare when they are working in the same market.