Golf's Problem: Tee Time Supply
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Hey Golfers —
The golf industry has a problem.
But you could argue that it is a good problem — a problem that the industry would rather see than the alternative.
There is a golf course supply issue in the United States. I know you have seen much of the data and facts related to golf's growth since 2019. But here are the quick bullet points.
Golf rounds were at record highs in 2023. The 531 million rounds were an increase of 90 million rounds vs 2019 — or an increase of 20%.
On-course golf participation was 26.6 million in 2023. An increase of 2.3 million on-course golfers compared to 2019.
The growth is excellent, right? Yes, it’s fantastic.
But here is the rub. Golf course supply has shrunk each year for the last 18 years. There hasn’t been a net increase in golf courses in the United States since 2005. And from 2006 to 2023, the United States lost 2,270 golf courses.
Below are two National Golf Foundation charts side by side.
The chart on the left shows the annual golf rounds. You can see golf’s slow decline in rounds starting in 2006 and then the sharp spike in 2020.
The chart on the right shows the golf course supply. We see that golf course supply started experiencing a net decrease in 2006. And we haven’t seen a net increase in golf courses to match the demand for golf rounds.
The golf industry is unique. But it isn’t unlike a lot of other industries or businesses.
If you want to purchase a good but cannot because the company cannot produce it or has fulfillment issues, you will likely find a competitor.
And that is my concern. That golf is on the verge of stifling growth because tee times are becoming more challenging to obtain.
So, we set out to get as much information as possible.
We created a survey to better understand the issue of tee time supply and demand. Over 650 responses came in — golfers are very passionate about this topic.
We asked nine questions in the survey. Here are the results.
Do you play golf at a private or public golf course?
Public — 488
Private — 171
Below is a pie chart of each of the cohorts. An important note is that tee time difficulty was not based on the golf course process or systems but on demand in a golfer’s area.
Over 35% of golfers who play at a public golf course find it difficult to get a tee time in their area due to demand. Nearly 50% find it somewhat difficult to make a team time due to demand. Only 14% of respondents found it easy to make a tee time in their area.
Of the 659 respondents — 328 found it somewhat difficult to book a tee time in their area due to demand. And 208 found it difficult to book a tee time in their area due to demand.
49.78% found it somewhat difficult to make a tee time
31.56% found it difficult to make a tee time
While the data above doesn’t seem ideal for the golf industry, I will note that this is only one data point. Analyzing trends is difficult since we do not have the numbers for the previous years.
But here is what I was looking for.
Are golfers playing less golf this year due to demand being too difficult to make a tee time?
Of the 208 that found it difficult to make a tee time — 146 have played fewer rounds this year. That is a staggering 70.2%.
Of the 328 that found it somewhat difficult to book a tee time — 123 have played fewer rounds this year — or 37.5%.
Below is a pie chart of the somewhat difficult and difficult cohorts and the correlation to their golf rounds this year. The total number of respondents in the combined cohorts is 536 golfers.
It isn’t realistic to build new golf courses in a short amount of time. So what is the solution to relieve demand?
I believe technology will play a significant role. And so do investors.
Two companies have recently raised money and have a unique take on increasing golf course supply.
Noteefy
Loop Golf
I talked to Jake Gordon, the CEO of Noteefy, to better understand how the company was addressing the tee time supply and demand issue.
Noteefy focuses on tee time cancellations. They estimate that 20% of tee times are canceled from booking and time of play. That is a massive problem for golfers and golf courses.
Tee time cancellations outside of 48 hours are highly likely to be refilled through the normal course of business. But that isn’t the case under 48 hours.
And that is Noteefy’s value proposition. Say a golfer wants to play a specific golf course. They sign up to get notifications of canceled tee times. When a tee time at that golf course is canceled, they will be notified of an available tee time. That golfer now books that canceled tee time. It's a win-win for the golfer and the golf course.
Here is how Noteefy can increase golf course supply. A public course in Florida with a utilization rate in the high 90% started using Noteefy. They had over $250,000 in inventory canceled and refilled with Noteefy within 48 hours.
How many rounds does that equate to? The course wasn’t disclosed for confidentiality reasons. But if a round costs $80 — that would be an increase of 3,125 rounds. Certainly material for one golf course.
Noteefy announced a seed round in May.
Loop Golf uses tee time scraping technology to match golfers with available tee times that fit their preferences. Loop aims to help golf courses fill last-minute cancellations and unsold inventory.
Similar to Noteefy, Loop has the ability to increase the utilization of our current golf courses.
Loop Golf announced a $1 million seed round two weeks ago.
Noteefy and Loop Golf can play key roles in increasing golf course supply at existing golf courses. The rub with each platform is that a golf course needs to sign up to use the technology.
So, to see incremental supply throughout the United States, we need as many golf courses as possible to support these platforms.
I’m concerned about the difficulty of getting tee times. And the correlation it could have on golfers playing fewer rounds. Now — golf rounds are up 2.4% this year. So golf continues to signal strength.
But we need more capacity to continue growing and adding more golfers to the game. I believe that technology and innovation will help us add more capacity.
Have a great Monday. We will talk to you next week!
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I just discovered Loop last month and was able to secure a really solid tee time relatively easy. Excited to try it again and make sure it wasn't just a fluke bc It definitely has good potential.
Jared - you just clipped 10,000 subscribers - where does that put you in the golf media industry. Really enjoy the work!