Golf Packages

Golf vacation packages are an important promotional tool used by many companies to attract more vacationers during the off-seasons. In essence, special golf rates are combined with discounted rates for accommodations. The result is a golf vacation package that includes accommodations, green fees, cart fees, and tax. Company has an arrangement with the local golf association to offer special rates at nine local, signature golf courses. The golf association, in turn, promotes golf on a co-op basis with the local Convention and Visitors Bureau. The vacation rental company also promotes their accommodations and golf packages to target consumers. The golf vacation packages are available throughout the year.

The company’s overall business objective is to place “more heads in beds,” particularly during periods of rental accommodation over-capacity. Maintaining and building acceptable occupancy levels during the shoulder seasons is critical to the company’s long-term success.

Golf packages information.

The findings indicate that when male golfers are initially deciding whether to purchase a golf vacation package and which one to purchase, their primary information source is their golfing friends. Positive word-of-mouth communications involving their friends’ experiences and recommendations appear to positively influence perceptions of purchase decision convenience. Such communications seem to be a needed assurance among male golfers who seek to reduce the risk of making a poor purchase decision. Among the risks involved with this type of vacation purchase are significant financial risks (i.e., a bad decision could be an expensive one, too) and social risks (i.e., there is a risk in disappointing one’s golfing friends). Other sources of information influencing the initial purchase decision include magazine and newspaper travel articles and various Web sites. These information sources are perceived to be neutral or unbiased, and they are favored over advertising. In fact, golf vacation package advertising is generally viewed very skeptically by the respondents and assumed by some to present a biased perspective.

Once a golfing destination is selected and a satisfying experience is enjoyed, male golfers tend to become “creatures of habit.” They appear to be heavily influenced by their previous experiences when booking future trips, thereby further reducing their purchase decision risks and positively influencing perceptions of purchase decision convenience. Golf get-away “traditions” are often formed among male golfers and their companions, as they return to the same destinations each year. Avid golfers also tend to plan more than one golf vacation per year. Their apparent reliance on tradition to determine where and when they plan a golf vacation suggests that convincing current customers to switch to a different destination is a very difficult, if not impossible, marketing task.

Weather appears to be the most important factor in selecting (or not selecting) a golf vacation package, and to strongly influence perceptions of access convenience. The fact that weather is uncontrollable by marketers highlights the critical importance of distribution in the marketing mix. Distribution involves offering the right product or service in the right place and at the right time. Once a distribution strategy is decided upon, it is often the most difficult part of the marketing mix to change. After golf courses and accommodations are developed in a given location, the marketer is “locked-in” to the favorable or unfavorable local weather conditions throughout the year.

Male golfers seem to seek much variety in a golf vacation package. Respondents felt that having four or more golf courses to play on vacation was very important. The availability of several golf courses seems to positively influence perceptions of access convenience. In addition, they look for accommodations that offer after-hours activities, such as dining at on-site restaurants, and drinking and socializing at bars and nightclubs.

Also, male golfers seem to desire value when selecting a golf vacation package. Cost may not be a major concern for those with higher incomes. However, they expect to enjoy a high-quality experience at a reasonable cost. The respondents’ cost expectations appear to be in line with average spending per golf trip among domestic golfers. Male golfers with relatively lower annual household incomes are the most likely consumers to be influenced by price deals.

The major factor that might influence male golfers to increase the frequency of golf vacation purchases is more vacation time. The time constraints among employed golfers reflect a larger socio-cultural trend- more people are working longer hours than ever before. Unfortunately, marketers cannot control external environment factors. However, marketing strategies can be developed to address the time constraint issue, as detailed below.

In summary, service convenience is an important, overriding factor when selecting a golf vacation package. Purchase decision convenience appears to be positively influenced by both word-of-mouth communications and prior experience. Not only should several golf courses be available, but also they should be accessible. Male golfers do not want to wait in line to tee off, preferring to set tee times prior to their trips. They also do not like overly crowded courses and associated slow play. In terms of paying for the vacation, trips that are easy to book and that could be paid for in advance are definitely preferred, and they seem to positively influence perceptions of transaction convenience. When deciding upon a golf vacation package, perceptions of overall service convenience appear to be positively influenced by perceptions of purchase decision, access, and transaction convenience.

Golf packages deals.

Management should consider focusing on providing a satisfying experience to current customers, who seem to be quite loyal to enjoyable golf vacation packages. In fact, most package purchasers are repeat customers. Attempting to entice loyal customers to switch from one golf vacation destination to another would likely be an expensive (in terms of associated marketing expenditures) and risky strategy. Thus, customer retention is of paramount importance. Encouraging more frequent purchases of golf vacation packages among current customers seems to be a viable marketing strategy to increase rental occupancy rates. One possible strategy would be to create a frequent golfer card with reward points, similar to a frequent flyer program.

Attracting new customers is a much more difficult task, but consideration should be given to the importance of capturing the next generation of vacationing golfers. Currently, this vacation rental company targets relatively older, affluent consumers. Management should consider maintaining current marketing efforts to these target consumers, while expanding their target market to include younger (25-45 years old) and lower-income groups of golfers (i.e., $25,000-$50,000 annual income). More price-sensitive golfers would likely be influenced more by price than tradition. Attractive price deals and flexible pricing options could be offered to younger, less affluent consumers. The objective would be to establish a new golf vacation “tradition” among these golfers. The lifetime value of these customers would seem to outweigh the upfront costs of acquiring them. As these new customers age and their incomes increase, they should be able to afford golf trips on a more frequent basis. As long as their experience is satisfying, they are likely to return to the same golf destination.

Company needs to closely examine its external environment when searching for opportunities or seeking to minimize threats. Environmental factors, such as weather and time constraints, are important but uncontrollable. This vacation rental company is fortunate to have accommodations located in an area known for having good weather throughout the year. The firm should further promote this sustainable competitive advantage in its advertising. Advertising headlines and copy could focus on the area’s good weather, perhaps using “golfer’s language” to convey the message. For example, ads could include phrases such as: “Par 72 … temperature 72” (in Fahrenheit) or “Is your score as good as our temperature?”

Management should consider directly confronting the fact that many consumers in today’s society are suffering from a “poverty of time.” One possible strategy is to offer more weekend golf vacation packages, primarily targeted to golfers in nearby locations (perhaps within 200 miles of the destination). Creating a couple of amateur tournament weekends each year (one in the fall and one in the spring) would enhance the variety, excitement, and fun that golfers seek. These promotional events may help to increase golf package purchase frequency among time-constrained golfers during the shoulder seasons.

Overall, a key consideration for this company (and many others) in attracting more customers and in retaining existing customers is to focus on service convenience. For instance, providing flexible golf vacation packages in terms of costs and timing may appeal to new customers, and may increase purchase frequency among current customers. Providing consumers with service convenience will likely lead to positive, word-of-mouth communications, which are quite influential when making a golf vacation package-purchase decision.