As we begin 2007 there is more optimism, albeit guarded, about the state of the club and resort industry than has been the case in the past few years. Certainly, concerns remain about overcapacity and the resulting pressure on real growth rates, pricing and the availability of dollars for capital-spending plans. However, the cup is at least half full for the majority of operators we talk to about their outlook for the new year. And why wouldn’t that be the case for owners, boards and management teams who are on top of their game?
Smart money follows smart business opportunities. Many were surprised by the $1.8 billion price tag when KSL Capital Partners bought Club Corp last fall. Well, guess what? Not only was KSL willing to pay that price, it did so with the conviction that it will earn a handsome return on the investment in the years to come. Think KSL is overly concerned about the state of the industry or its ability to compete and prosper?
The key to success, if not survival, is a continuous process of strategic investment and improvement.
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As our industry evolves, the lines of distinction between the quality of facilities and services among private, semi-private, and upscale daily-fee clubs and resorts will continue to blur. That is often the case in a highly competitive market.
And that means the key to success—if not survival—will be a continuous process of strategic investment and improvement, all geared to the specific needs of your members or customer base.
No doubt, most of you have a plan in place for enhancing facilities, services and programs at your club in 2007—a smart strategy for dealing with the angst of a market in transition.
For those of you who are still hoping to develop such a plan for this year, I can tell you two things: One, hope is not a strategy. And two, be sure to take a look over your shoulder, to see who’s gaining on you.
See you at GIS
When the Golf Industry Show (GIS) takes place in Anaheim, Calif., February 22-24, it will mark the first time that Club Managers Association of America (CMAA) joins forces with the associations representing club superintendents (GCSAA) and owners (NCGOA) to fulfill the vision of the GIS when it was formulated three years ago. Conference activities for the respective groups precede and follow the show dates.
Some exhibitors and attendees on the CMAA side will likely be heading to Anaheim with some degree of apprehension about how effectively this merger of three separate association events can be pulled off.
Based on our GIS experience of the past two years, you will be pleasantly surprised. After all, this gathering of the entire management team in a single location is an accurate reflection of the way clubs and resorts are being managed today. And you get the benefit of a one-stop shopping source, to boot.
Think of the GIS as the in-person complement to the in-print wealth and breadth of content you have come to rely on from C&RB each month.
And if you get the chance, stop by our booth (# 6921) and say hello.
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