Emerging Trends: A Private Club Managers Perspective
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1 Emerging Trends: A Private Club Managers Perspective Presented by: Michael G. Leemhuis, M.A. Ed., CCM, PGA Professional CEO, Congressional Country Club National Officer, CMAA
2 C H A N G E!
3 Emerging Trends? Economy Demographics Increased Competition Golf Operations Club Leadership CEO Concept Food and Beverage Technology Fitness and Spas Tennis Labor and Workforce
4 Managing Emerging Trends New World Order Economy Management of Member Expectations Management of Employee Expectations Management of Club Facilities With a NEW management model President, Board and COO
5 Demographics Clubs will need to cater to an aging Baby Boomer Generation Anticipate the differences in the emerging Generation X & Y Cater club services to these groups; Dining Current Technology Cell phones, Blackberry s, Laptops, Wi-Fi Fitness, treadmill example Change marketing to attract these segments
6 Baby Boomers Age Dominate the luxury market for years Retiring later in life Emphasis place on health and looks Migration South and West in search of warmer climates, more open spaces and safer communities i.e.: Raleigh, Phoenix, Las Vegas - large NE cities will continue to loose population
7 Generations X & Y Gen X: year olds Gen Y: year olds Gen Y s Cant find jobs! More diverse, Multi-cultural, Saturated with technology Married later and starting families later, but less likely to sacrifice family time for business As Singles they have a fierce appetite for; Fashion, Entertainment, Technology, Personal Indulgences of all kinds Once Married this turns into a hunger for home and personal goods, especially as they start a family
8 Women Increased levels of professional success 65% of women aged are mothers 25-44% of all working women earn more than their partners 50%+ of students entering hospitality 51% of women living without a spouse More women using childcare, fitness, spa, tennis and expecting fathers to do more Demands for childcare and babysitting while at the club to exercise, recreate or dine
9 Golf Operations Competition for golf is FLAT. High end public courses still see increase in rounds Smaller Private Clubs struggling NGF predicts Baby Boomers will increase rounds dramatically? Pro shops owned by club/facility not Pro Less Golf Professionals as Independent Contractors in the future Why? Major revenue source for private clubs and employee easier to manage
10 Golf Course/Club Development 4,400 Private Golf clubs in the US today, similar to 80 years ago 85% of clubs are member-owned, 21 million members Members leaving clubs or asking for leave of absence or sabbaticals Increase in golf management companies Golf Course Maintenance standards being retooled - green Security Safe Haven extension of members home Major Renovations being done to be competitive COO Management Concept of running clubs
11 Club Leadership CEO Concept The new standard! Certified Chief Executive! hired by the Board of Directors and reports to the President or Executive Committee responsible for carrying out the Board s policies held accountable for all areas of the club and will ensure the synergism of all club activities clubs are big business the bridge to the staff and committee enables the Board to avoid the intricacies and short-term focus that is the staff s responsibility allows the Board to work more exclusively on the holistic and long-term focus of the club s governance
12 Food and Beverage Visible, tangible facet of club experience More informal and fast casual dining emerging Constant competition from upscale, casual establishments for Outdoor Dining; Family Friendly; Take Out; Small Plate etc More wine savvy palates wine list important Food Cost increase, portions become smaller Diets and dining trends (health) affect menus Organic, Healthy Eating and Value for Money Spicy Foods, Italian Cuisine Food Safety Going Green; tap water not bottled
13 Technology Members are increasingly advanced in technology Expect convenience, efficiency, security 24-7 access to tee times, reservation, accounts Protect against identity theft Secure confidential data, records and transactions Web-based software Ensure physical security Sophisticated grounds surveillance, remote security and cameras Data-mining for tracking and marketing
14 Fitness and Spas Steady increase in demand for age appropriate fitness facilities Specialized programs for older adults Use of personal trainers Functional fitness and core/balance training Yoga, Pilates, tai chi popular Many clubs consider adding spa treatments as well Boca West CC Younger generation demands more than the traditional sports/exercise Club Renovations driven by this need
15 Tennis The re-emergence of TENNIS as a country club sport Competes for members leisure golf/sport time. Members see more physical/cardio activity benefit Takes less time than golf and gives you a health benefit Women got this trend started and men followed
16 Labor and Workforce Shortage of H2B Visas seasonal workers Older workers are not retiring: more than ½ U.S. workers will be older than 40 in 2010 Flexible work options to address: Increased life expectancy, multigenerational families, women in workforce Gen Y (16 25) not prepared for work Employee Benefits Current Economy = better employees
17 Employee Benefits Healthcare plans cost increasing dramatically each year Premiums up; employee contributions up Wellness programs may save companies money. Studies show $3 in health care savings for every for every $1 spent on wellness. Alternate plans such as Premier Club Benefits to address the inadequacies of existing coverage Members feeling of social and/or fiduciary responsibility to long term employees (extended family)
18 Conclusion Change is the law of life. And those who look only to the past or present are certain to miss the future. John F. Kennedy The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew and act anew. Abraham Lincoln If the rate of change on the outside exceeds the rate of change on the inside, the end is near." Jack Welch, former CEO, General Electric Corp. If you want to make enemies, try to change something. Woodrow Wilson
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