[비즈한국] A members-only golf course in Hwaseong, Gyeonggi-do, has announced that it will raise its green fees starting April 1st. The weekend green fee for non-members is 300,000 won. A members-only golf course in Pocheon also announced a green fee hike, increasing by 20,000 won to reach 300,000 won for weekend non-members. I was more interested in these courses because they are places I enjoy playing a few times a year. Consequently, the shock was greater. While the course setup is fun and the maintenance is excellent, when I ask myself, ‘Will I actually play at that green fee?’, the answer is a hesitation-free ‘No’.
The golf course side cited inflation, including labor costs, along with property taxes, ownership taxes, and facility improvements as reasons for the green fee increase. They also added a polite plea that the increase had been minimized after much deliberation. This news left many golfers quite flustered. Some golfers even said it felt like being backstabbed.
After going through an unprecedented boom period during the COVID-19 pandemic that will likely never return, golf course revenue has sharply returned to its original state (?) following the endemic. Having read reports that the departure of the MZ generation has led to a decline in not only golf course visitors but also the golf equipment and apparel markets, and even screen golf revenue, the reaction of golfers to the news of a 'green fee increase' is mostly, "What, they're actually raising them?" Didn't we learn that prices drop when demand decreases? Didn't we argue that green fees would only come down if people played less golf? Didn't people say that we would follow the path Japan took?
If so, why did the golf courses raise green fees in this situation? I speculate it is due to the dual pricing system of 'list price' versus 'special deal.' Over 25% of golf course revenue in South Korea comes from corporate cards. The proportion of business golf, often called entertainment golf, is also quite high.
Usually, bookings for business golf are made much further in advance compared to casual social golf. This is because the schedules of golfers playing business golf are mostly packed, and sharing dates with the golf course in advance is perceived as one of the ‘skills of entertainment.’ Some high-handed (?) superiors even designate the golf course they prefer. Naturally, for rounds that must take place at a specific golf course on a specific day, one has no choice but to pay the ‘list price’ set by the course.
However, there exist ‘special deals’ that make the 'list price' look embarrassing. Although it is February and the peak season hasn't really started yet, there are already weekday special deals for mid-tier or higher courses in Icheon, Gyeonggi-do, listed for under 100,000 won on booking apps. As tee times draw closer, special deal tees pour out and prices drop. This is because booking managers who have secured tees in advance must dispose of them somehow.
For golf courses further away from Seoul, if you catch a dawn special deal in the middle of the night and then grab an imminent afternoon tee after finishing your round, it is possible to play 36 holes for the price of 18. At this point, shouldn't golf course green fees be divided into ‘special deal’ and ‘non-special deal’ rather than ‘list price’ and ‘special deal’?
Ultimately, diligent people who book in advance end up paying higher green fees, while golfers who wait patiently and play a ‘game of wits’ pay lower fees. Perhaps this behavior is why golf courses are just raising green fees upfront. Could it be a strategy to cover the revenue lost to special deals by charging high list prices to those who have no choice but to come even if it's expensive?
Even if it isn't business golf, rounds that must take place there on that day, so-called ‘hosting golf,’ exist in a high proportion in the South Korean golf market.
If that's the case, it sounds reasonable for us golfers to not necessarily book in advance. Of course, the situation might be different during the peak season when it's hard to get a tee time. While you might feel at ease booking a month or more before the round date, your wallet might not be. If you wait until you think you might not be able to book at all, and poke around here and there, wouldn't a special deal surely appear?
I am reminded of the lyrics from Cho Yong-pil’s ‘The Leopard of Kilimanjaro.’ Have you ever seen a hyena prowling in search of prey? The green fee hikes at golf courses are turning many golfers into hyenas. Have you seen the golfer, the hyena, prowling through booking apps in search of a special deal?
Who is the author Kang Chan-wook? An advertiser and writer. He started as a copywriter at Cheil Worldwide and is currently the CEO of the video production company ‘Sidae-ui Siseon’ (View of the Times). Loving golf, he obtained his USGTF teaching professional certification, and with a passion for writing, he has published golf books such as ‘The Joy of Golf’, ‘Bad Golf’, ‘Sincere Golf’, and ‘Golf Thoughts, Thoughtful Golf’. He runs the YouTube channel ‘Bad Golf’ and shares various stories and thoughts surrounding golf with readers and viewers.