NGCOA Releases Third Party Position Statement

The National Golf Course Owners Association Canada has released a position statement on the contentious issue of third party tee time resellers. Below is the statement in its entirety:

Official Position Statement:

3rd PARTY TEE TIME RESELLERS

Board Approval – March 4, 2011

In response to widespread concerns expressed by Canadian golf course operators regarding the role of 3rd Party Tee Time Resellers, the National Golf Course Owners Association Canada has established the following position:

Official Position Statement

i) For the purposes of this Position Statement, a 3rd Party Tee Time Reseller is defined as an entity other than the Golf Course itself that is in the business of providing sales and distribution of tee times, memberships and related services to golfers through intermediary websites or other marketing channels not owned by the Golf Course.

ii) Golf Courses should promote as much sales as possible directly through their own websites, pro shops or call centres.

iii) If working with a 3rd Party Tee Time Reseller, Golf Courses should design marketing plans that position these Resellers as supporting strategies only, intended to drive incremental business and fill soft demand periods.

iv) Golf Courses opting to work with 3rd Party Resellers should protect themselves by managing those business relationships according to the Best Practices described below.

v) The NGCOA Canada’s primary role with respect to 3rd Party Tee Time Resellers is to provide consultation to its membership.

Critical Best Practices

If contracting a 3rd Party Tee Time Reseller, the NGCOA Canada recommends that the Golf Course include each of the following Critical Best Practices:

SIGNED WRITTEN CONTRACT

All agreed upon terms and conditions should be contained within a written contract signed by representatives of both parties who have the authority to execute binding legal agreements.

TERM

The term of the agreement should be clearly defined. The Golf Course should have the right to immediate termination with no penalty for any breach of the agreement by the 3rd Party, and the shortest possible notice period for termination without cause.

BEST RATE GUARANTEE

The Golf Course should have the right to require that their own posted rates and promotions are the best offers at all times, or equivalent to the best available. Any exceptions should require written consent in advance.

DATABASE OWNERSHIP

The 3rd Party should provide unfiltered access to the Golf Course of all pertinent customer information, forwarding all such data in whatever form and timing is mutually agreed upon. The Golf Course acquires ownership of all such data immediately upon receipt.

PAYMENT MODEL

Terms of payment should be clearly defined. The NGCOA Canada recommends a commission based model which assumes a reasonable percentage paid to the 3rd Party on tee times actually sold. If a merchant model is used instead (course provides tee time at net rate to 3rd party, 3rd party sells to golfer at gross rate), then a defined mark up from net to gross rates should be included in the agreement.

AUCTION MODEL

No auctioning of tee times by the 3rd Party should be permitted without expressed written consent by the Golf Course.

URL OWNERSHIP

The Golf Course should own and protect its Uniform Resource Locator (URL) for all of its own websites at all times.

SEARCH ENGINE OPTIMIZATION

To protect the Golf Course from online golfer searches being diverted away from its own websites, the 3rd Party should not use the Golf Course or related facility names for their own search engine optimization (SEO) without written consent of the Golf Course.

BRAND PROTECTION

The 3rd Party should only utilize the Golf Course’s name, logo, slogans, photographs, or promotions for the marketing purposes specified within the contract. The Golf Course retains the sole right to determine any updated presentation of these marketing properties on the 3rd Party website and any other marketing materials.

SELECTIVE INVENTORY

The Golf Course should retain the right to offer the 3rd Party only that tee time inventory that it deems to be in its own best interest.

LOYALTY & MEMBERSHIP PROGRAMS

Any 3rd Party loyalty or membership programs that leverage the customers of the Golf Course should be fully disclosed within the contract. The Golf Course should be diligent about protecting itself from any such programs that will be competing against its own loyalty or membership.

INDEMNIFICATION & REGULATORY COMPLIANCE

The 3rd Party should protect the Golf Course from all possible liability for taxation and regulatory matters related to the resale of tee times, both provincially and federally. The 3rd Party should be fully compliant with all relevant regulatory standards, including the Privacy Act and PCI.

Additional Best Practices

Beyond the Critical Best Practices noted above, the NGCOA Canada suggests that Golf Courses also consider implementing the following terms and conditions:

ADDITIONAL SERVICES

If the 3rd Party is offering additional services beyond tee time reselling, all such services and any related fees should be specified within the contract.

PRICE PARITY

The Golf Course retains the sole right to impose price parity (same price for same product throughout all marketing channels).

ONLINE LINKS

The 3rd Party should be required to fully disclose all proposed links to any other sites, in writing and in advance.

TRANSFERABILITY

The 3rd Party should not be entitled to sell, give or partner its reseller services to any other 3rd Party without the Golf Course having the right to terminate or adjust the terms and conditions of the agreement.

EXCLUSIVITY

The Golf Course should retain the right to work with any other 3rd Parties.

CONFIDENTIALITY

The 3rd Party should not be entitled to a confidentiality clause that prevents the Golf Course from disclosing the terms and conditions of the contract

PROPRIETARY BUSINESS INFORMATION

The Golf Course should request reasonable protection for all proprietary business information that may be exposed to the 3rd Party as a result of the business relationship.

SUPPORT SERVICES

The contract should define all of the 3rd Party support services to the Golf Course, including IT, customer relations, marketing and consultation.

LEGAL ENTITY

The contract should define the legal business configuration of the 3rd Party and clearly state that the 3rd Party will present itself as being totally independent from the Golf Course.

Industry’s Government Efforts Will Have Consistent/Varied Messages

As we discussed in yesterday’s blog about the government relations campaign being launched next month through the National Allied Golf Associations, the issues faced by the golf industry vary from jurisdiction to jurisdiction, so there will be some consistent messages delivered and some based on regional challenges.

”We’re going to go in with the general message everywhere that is consistent and that’s focusing on the economic impact (of golf) and backed up by the environmental stewardship, the truth of it, not the misconceptions, as well as the healthy lifestyle,” said Jeff Calderwood, executive director of the National Golf Course Owners Association, one of the member NAGA groups.

“The second level to it is to focus on a specific issue if we want to ask for something while we have government’s attention,” he said of regional issues that could be brought up at provincial meetings. Read more

What Took Us So Long To Approach Governments?

It’s difficult to tell at this point what will come out of the Canada-wide government relations campaign being launched by the National Allied Golf Associations next month, only because this will be the first time the golf industry as a whole has approached provincial and federal governments, to the best of my recollection.

Next month’s campaign is the logical next step after NAGA unveiled its economic impact study back in August of 2009, which you can read about here. For more on the government relations campaign, click here.

Tomorrow’s blog will deal with how NAGA and its provincial allies hope to approach governments across the country, but the logical question to ask is, if it’s so important, why is it happening for the first time in 2011? Read more

Social Media Requires Relevance/Commitment/Professionalism

Don MacKay’s thoughts on service and friendliness being the key to retaining golfers is a traditional one, even if those aspects might need to be enhanced even more in this challenging era for golf course operators.

Carrying on with our series with the owner of Muskoka Highlands in Bracebridge, Ont., and new president of the National Golf Course Owners Association, he also recognizes the importance of using new vehicles in not only luring existing golfers, but also attracting new ones. Read more

Co-Op Efforts Are Becoming A Necessity

With its $59.95 green fee, Muskoka Highlands in Bracebridge, Ont., offers an affordable day on a golf course renowned for its greens and friendly atmosphere in the heart of cottage country north of Toronto.

Yet, its owner Don MacKay, the new president of the National Golf Course Owners Association, lives in the real world.

“I put my hand up and say that Muskoka Highlands is probably not going to bring anybody to Bracebridge from Toronto to Hamilton. I don’t think anybody is going to get in the car, drive up to play for the day and then drive home again,” said MacKay.

“I would love to think that it might be so, but I’m realistic in realizing probably not,” he added. Read more

New NGCOA President Favours Service Over Discounting

A chat with Don MacKay, friendly proprietor of Muskoka Highlands in Bracebridge, Ont., and new president of the National Golf Course Owners Association, usually takes some time, but is never a waste of time with his interesting ideas and observations.

Just before the holidays, I had the opportunity to engage in one of those lengthy chats with McKay and he remained true to form as we discussed some of the issues ahead for the golf industry over the next couple of years.

“If you talk to an owner, it’s `How do I get more people paying more money to play on my golf course?’” said MacKay.

“That’s the owner’s dilemma right now is discounting and third party discounting, third party resellers,” he added. Read more

How Safe Is Your Food And Beverage?

If somebody asked you if the food at your facility was safe, the common reaction would be to say absolutely. If somebody asked how you knew if it was safe, you might struggle for the answer(s).

Despite the best intentions, illnesses from food are common and in the latest issue of Golf Business Canada, Paul Medeiros suggests precautions in the story Safety First: Creating Excellence In Food Safety Systems.

To read that story, click here. It’s in PDF format, so click the words Food and Beverage.

Strategies To Increase Business in 2011

The latest issue of Golf Business Canada, the publication of the National Golf Course Owners Association Canada, contains an article by Andrew Wood on how to deal with the challenges ahead for the golf industry in 2011.

Despite all of those challenges, Wood suggests a number of ways to deal with the changes in the golf landscape in the story 7 Strategies To Increase Your Business In 2011.

To read that story, click here. It’s in PDF format, so click the word Feature.

Capital Financial Storm

Golf Business Canada, the magazine of the National Golf Course Owners Association, takes a look at the challenges facing golf course owners when it comes to financing in an article written by John Gordon in the fall edition.

You can read the entire article by clicking here. It’s in PDF format, so click “Feature” to read the article.

Financial Information Is Not Mine To Give Out

There’s been plenty of discussion on this website over the past week or so about the Rounds Played program that the National Golf Course Owners Association and the Canadian PGA are running in partnership.

In reply to the current poll being conducted on the home page, my answer is that if it’s confidential and our name isn’t attached to it, I don’t mind talking about rounds played in the sense that they worded it something like, `We polled 50 courses and here is the average rounds.’

I can estimate reasonably well how many rounds a particular golf course does and people can guess pretty accurately where we are also. People who really know the business can probably peg my rounds to within 10 per cent and I would think that I can peg 80 per cent of golf courses to within 10 per cent.

When people do a report on rounds in the private club sector or the public course sector or the nine-hole sector, they usually don’t say this course had this many rounds and that course had that many rounds. As long as they generalize, I’m okay with that – it’s good for data as long as they’re not putting my name to a number.

When it comes to financials, even though I know it’s going to be confidential, I still couldn’t give up that information.

It may be one in one thousand, but let’s say somebody left to go to another job and they took my numbers with them. It’s illegal, but my ownership at Angus Glen when I was there or my board at Coppinwood would not be happy spreading that information around.

I’m happy to talk to people in general terms. I’m happy to answer a phone call from colleagues, but I can’t give out financials. I think that most people feel that way in respect to financials.

I’ve got no problem talking to a friend in the business or sitting on a roundtable discussing general information, but when it comes to financials, I’ve always felt I don’t own these numbers, so they’re not mine to give out.

I will try to help out the NGCOA and Canadian PGA as I have in the past, but I have a responsibility to others when it comes to financials. If I work for somebody, they’re not my numbers, they’re somebody else’s.

(For more on this subect, click here and see the current GNN Poll on the home page-Editor)

Would You Divulge Your Numbers?

As discussed in a blog here last week, the main challenge facing the Rounds Played Program being run by the National Golf Course Owners Association and the Canadian PGA in a joint partnership is trust.

The fear of sensitive business information falling into a competitor’s hands as part of this program is a strong one, but as NGCOA executive director Jeff Calderwood pointed out, the numbers collected are only used cumulatively to establish benchmarks through a technology platform without divulging individual golf course numbers.

“It’s a misconception, but yes, it’s a fear, so we have to market our way through that. I don’t see any of these numbers. Nobody’s getting these numbers. It’s totally confidential and they have to buy into that. Once they get in and use it, they realize it, but that’s part of our sales process,” admitted Calderwood. Read more

Vegas Attendance Up. How About Orders?

Here’s an example of the mixed messages we’re getting on the economy.

Reed Exhibitions is reporting a 16 per cent increase in attendance at the PGA Fall Expo, which was held this week in Las Vegas.

The Vegas show moved to the Venetian Resort Hotel Casino and was held during “fashion week” in that city and while the release talked about full aisles and appointment books, there was nothing other than anecdotes to suggest that any more business was done.

While there’s something to be said for exposure to more buyers, it was difficult to ignore the current GNN Poll that, at last look, said that 83 per cent of respondents felt their golf facilities were going to hold their spending at last year’s levels, while only 17 per cent expected to spend more. Read more

Data Program Promises Confidentiality

In this era when even having your e-mail address fall into the wrong hands results in an unwanted barrage of solicitations, there is an understandable reluctance to dish out information, especially with a perception that sensitive business information could fall into competitors’ hands.

That’s the challenge faced by the National Golf Course Owners Association and now the Canadian PGA as they partner to collect data from individual golf courses in order to help those very golf courses use the data to analyze and compare their performances against similar facilities.

The challenge is perception, according to NGCOA executive director Jeff Calderwood, who uses the word misconception to actually describe the fear of divulging classified information as part of this data program. Read more

CPGA Joins NGCOA On Rounds Data Program

The National Golf Course Owners Association has joined with the Canadian PGA on its rounds played program, which tracks various operational sources, many of which are managed through pro shops.

The partnership with the Canadian PGA is designed to generate greater participation in the program, which will lead to more comparative data to benefit the industry.

Participating golf course can compare their monthly/yearly performance against similar operations on a regional, provincial and national basis.

“The golf professionals are an integral part of the golf operation and having them as partners will help us grow and further develop this invaluable business tool being offered to golf courses throughout Canada,” said NGCOA executive director Jeff Calderwood.

Survey Says …

What’s your policy on staff play?

Many golf courses see it as a way to reward a job well done, but it can be a challenge if you have members out on the course.

Golf Business Canada, the magazine of the National Golf Course Owners Association of Canada, recently surveyed its readers to see how they felt about staff play. You can read the results of that and other surveys by clicking here, then the Survey Says section for the PDF.

Then, see the section Staff Golf Privileges, Biggest Challenge: Managing the times they want to play.

55% offer staff pricing.

53% must work a minimum number of hours.

83% managed staff play through the pro shop.

66% have a written policy.

86% provide free golf to all staff.

71% say staff golf is a challenge

Food and Beverage Tips To Consider

Food and beverage is an important contributor to your golf course operation and as such, a few updates are needed every once in awhile to keep your members/clients coming back and improving your revenues.

The latest issue of Golf Business Canada, the magazine of the National Golf Course Owners Association, offers 10 ways to address your customers’ needs in the story Top 10 Food and Beverage Trends for Golf Courses.

Just click here for that story. It’s in PDF format, so just click Food and Beverage under Summer 2010.

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