Trading Tee Times for Tech: A Deep Dive into GolfNow's Barter Model with Paul Sampliner
The golf industry is no stranger to technological disruption. From online tee time booking platforms to sophisticated revenue management systems, technology has reshaped how golf courses operate and how golfers connect with the game. One of the most influential players in this digital transformation has been GolfNow, a company that offers a suite of technology and marketing services to golf courses in exchange for tee times. This practice, often referred to as the "barter model," has been a subject of debate within the industry, with proponents highlighting its benefits and critics raising concerns about its potential drawbacks.
In an episode of the Tech Caddie podcast, host Mike Hendrix sits down with Paul Sampliner, a former PGA professional and GolfNow executive, to discuss the evolution of golf technology and the impact of GolfNow's barter model on the industry 1. Sampliner, who has returned to his roots in Ohio to help revitalize Highland Park Golf Club through the Highland Park Golf Foundation, offers a unique perspective, having experienced the industry from both sides of the equation – as a GolfNow executive and now as a golf course operator 2.
The Rise of Online Tee Time Booking and GolfNow's Influence
Sampliner's journey in the golf industry began with positions at several large resorts in Arizona, including JW Marriott Wildfire Golf Club and Hilton's Pointe Golf Club at Lookout Mountain 3. He later transitioned to the burgeoning world of online tee time booking, becoming one of the original executives at GolfNow.com 3. He even worked in Northern Ireland to help launch GolfNow UK, demonstrating his deep involvement in the company's expansion 3. GolfNow was acquired by Comcast via its "versus" unit in 2008 4. This acquisition marked a turning point for the company, expanding its reach and influence within the industry. Today, GolfNow operates the world's largest online tee time marketplace, connecting millions of golfers with over 9,000 courses worldwide 5.
GolfNow's barter model has been instrumental in its growth. By offering technology and marketing services in exchange for tee times, the company has been able to attract a vast network of partner courses. In return, courses provide GolfNow with a certain number of tee times per day, which are then sold as "Hot Deals" at discounted rates on the GolfNow platform 7.
GolfNow's Technology and Marketing Solutions
GolfNow provides a range of technology solutions designed to help golf courses streamline operations and enhance the golfer experience. These solutions include advanced tee sheet management systems, point-of-sale (POS) systems, customer relationship management (CRM) tools, and mobile apps with GPS functionality 9. GolfNow also offers a call center service and revenue management systems that help courses optimize pricing and inventory, as well as payment processing solutions that simplify transactions for both golfers and operators 5.
One of GolfNow's latest innovations is Athena, a cutting-edge technology that leverages artificial intelligence (AI) and machine learning to optimize pricing strategies 10. Athena analyzes a vast amount of data, including weather patterns, day of the week, time of day, available inventory, and even market trends, to generate over 45,000 daily pricing decisions for golf courses 10. This technology aims to help courses maximize revenue by dynamically adjusting prices in real-time based on demand and other factors 10.
GolfNow's marketing services are another key component of its offering. The company provides tools and resources to help golf courses reach a wider audience and promote their offerings. These services include email marketing campaigns, social media advertising, and featured listings on the GolfNow website and app 11. GolfNow also partners with other organizations to promote the game of golf and drive participation. For example, the company has partnered with Spark Golf, the largest network of 9-hole social golf leagues, to promote a more social and accessible version of the game 12. This partnership allows GolfNow to tap into a growing segment of golfers who are looking for a more relaxed and social golfing experience 12.
Benefits and Drawbacks of the Barter Model
For many golf courses, the barter model has been a valuable tool for increasing visibility and filling tee times, especially during off-peak hours 13. GolfNow's marketing reach and extensive user base can be particularly beneficial for courses that lack the resources or expertise to manage their own online marketing campaigns 14.
However, the barter model is not without its critics. One of the primary concerns is the potential loss of revenue from the tee times given to GolfNow 13. While these tee times are typically offered at discounted rates, they still represent potential income that the course is forfeiting. This can be particularly problematic for courses with high demand or limited tee time availability 7. For example, one course estimated that they were effectively giving GolfNow over $116,000 annually in tee times 15.
Another concern is the impact on customer perception and pricing integrity 7. When golfers see heavily discounted tee times on GolfNow, they may become accustomed to those lower prices and resist paying full price when booking directly with the course. This can create challenges for course staff and potentially devalue the perceived value of the course's offerings 7. Additionally, some courses have reported issues with golfers who try to exploit the system by booking "Hot Deals" at off-peak times and then demanding to play earlier 15. Others have noted problems with "cheapskates" who engage in undesirable behaviors like playing 18 holes after paying for 9 or collecting range balls without permission 15.
Perhaps the most significant concern with the barter model is the inherent tension between GolfNow's role as both a technology provider and a competitor to golf courses 16.
Alternatives and the Future of Tee Time Management
Given the potential downsides of the barter model, many golf courses are exploring alternative solutions for managing their tee times and marketing. Cloud-based tee sheet management platforms offer similar functionalities to GolfNow's technology solutions but operate on a subscription model, eliminating the need to trade tee times 13. These platforms also give courses greater control over their pricing, branding, and customer relationships 13. Importantly, nearly every GolfNow competitor offers contract terms with shorter terms and friendlier early cancelation options.
In the Tech Caddie podcast, Sampliner and Hendrix discuss the evolving landscape of golf technology and the need for courses to carefully evaluate their options 1. They raise questions about the appropriateness of long-term agreements with technology vendors and the need for greater flexibility in an industry that is constantly changing 1. As technology continues to advance, it is crucial for golf courses to stay informed about the latest solutions and make strategic decisions that align with their long-term goals.
Conclusion
The barter model has played a significant role in the growth of online tee time booking and the adoption of technology in the golf industry. It has provided many courses with valuable tools and resources to increase visibility, streamline operations, and reach a wider audience. However, the model has become outdated. In an era of unusually high golfer demand the potential drawbacks, including the loss of revenue, the erosion of pricing integrity, and the risk of becoming overly reliant on a third-party platform outweigh the benefits. Golf courses need to carefully weigh these factors and consider the long-term implications of their technology choices.
Works cited
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