PriSwing Interface for Dynamically Priced Tee Times...
CPS has entered into an agreement with PriSwing to bring a new add-on service for Dynamically Priced Tee Times to the CPS Tee Sheet product.
Dynamic Pricing / Revenue Management
Selling the right product to the right person at the right time for the right price. Noted to be the ultimate solution for perishable type products (Hotel Rooms, Airplane Flights/Seats) has become a buzz in the golf industry the past few years. The idea is to squeeze out every dollar based on demand rather than just set one (or a few) static price(s). To do so requires thousands of decisions for a single day on a single golf course. Perfect problem for a computer to tackle.
Variables in the dynamic pricing decision primarily include the following items
Past history of bookings for the same time period.
While that sounds simple enough, each can be quite complex. For example, past history cannot just consider the date. It needs to consider the day of the week, does the day fall on or book-end a holiday? For weather – is it too cold, too hot, too wet or too dry? Is the weather at 8:00 AM significantly different than the weather at 1:00 PM? In essence, what is the demand for remaining tee times and what is the right price to sell that time to maximize revenue? It is not about discounting! Although that’s exactly what most Dynamic Pricing tools will do, a true Revenue Management product will suggest a price, based on demand, to maximize revenue (not necessarily the same as maximizing the number of tee times sold by discounting).
Real life story of a friend/co-worker who could not grasp the Revenue Management (vs. discounting) concept: We are both recreational players that typically shoot in the 90s and out for a Saturday 18 hole round. Prior to starting he mentioned family plans the next day and let me know he could not play on Sunday. Well that round turned out to be one of those days for him where everything just clicked and he managed to put a great round together shooting in the low 80s. He was hooked. While walking off the course, he said something along the lines of, "If we can get a very early tee time tomorrow, I can still make it back for the family plans." So we go to the proshop and ask the pro if there was a time available the next morning. He said, "Sorry guys, tee sheet is completely full". Being in a place known for tips and bribes, I asked if he could squeeze us in… no dice. We drove away from the course and I turned to my co-worker and said – "What would you have paid to get that guy to squeeze us in somewhere?" He said "Anything – that was the best I have ever played!" My reply was simply, "Revenue Management". His response was, "Ahh - Now I get it!!"
Club Prophet Systems teamed up with PriSwing to integrate the PriSwing algorithm and Revenue Management product with the Club Prophet Tee Sheet. Installed at a few customer sites already, the interface includes the dynamic pricing tool as well as some great business analytics graphs and reports.
Here is how it works:
Once contracted for the service with PriSwing, Club Prophet techs will configure your software to interface to a PriSwing web portal. The PriSwing service will analyze your Club Prophet database and work with you to configure Customer Mapping, Time Slots, Pricing Thresholds, etc. Using proprietary algorithms, PriSwing will then compute a demand curve and show you the rack rate, current price and suggested pricing for different blocks of time throughout each day. You can also see a variety of analytics showing how many rounds and the variance in revenue expected by accepting the suggested PriSwing pricing. You have the ability to modify those prices as desired and to then apply those pricing changes to the Club Prophet Tee Sheet in a manual (using the “Horizontal Price Push” button) or auto-pilot mode (prices will be re-optimized and updated overnight). The pricing on the CPS Tee Sheet is the pricing that is also displayed to golfers in your online reservation portal.
The dynamic price will be shown on the CPS Tee Sheet as a “Special” along with the dynamic price. You have the option of only allowing that price to be booked online. If you elect to force online bookings, any booking made directly on the tee sheet (in the shop) will remove the Special pricing and default back to your normal pricing. Of course, you can also elect to allow the Special price for bookings made directly on the CPS Tee Sheet as well. Why would you want to force online? Online booking is a great way to capture all the customer demographics and free up the shop personnel from making bookings. You have the option to go either way here.
Rick Robshaw & Torrey Schultz from CPS along with Arnaud Zunz from PriSwing will be at the Golf Business Canada Conference & Trade Show November 18-20 in Ottawa Canada. If you are going to the conference be sure to stop and see us.
Send us an email (firstname.lastname@example.org) or call our sales office (800-793-1872).
Club Prophet Systems
701 Russellton Road, Cheswick, PA 15024