Proactive Perception of External Environmental Changes and Adoption of Digital Transformation | 7/31/2023 |
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Things I would do right away if I were a golf course owner(1) Since 1998, South Korea has experienced more than twice the frequency of heavy rainfall exceeding 50mm per hour, and since 2000, intense rainfall of over 100mm per hour has occurred in places like downtown Seoul and Mount Umyeon once every 1 to 2 years. As global warming continues, South Korea is now entering a stage where it is experiencing climate change effects such as frequent heavy rains and prolonged periods of high temperatures during the summer. The traditional Korean design standards were based on a 50-year cycle, but due to the increasing occurrence of heavy rainfall, management is now being done on a 100-year basis. However, after the 2016 heavy rainfall in Ulsan and subsequent events like the Chungcheong Province heavy rainfall this summer, which only happens once every several years, the country has faced unbelievable casualties and devastating damages. Even golf courses are expected to face longer closures due to continuous heavy rainfall, and there will be greater risks of landslides and course damage. The vicious cycle of climate change, including increased summer heat periods due to global warming and heavy snowfall or rain in winter due to cold high-pressure systems, will likely result in shorter spring and autumn seasons, reducing the golf season and making course management more challenging. Looking at it from an economic perspective, if greenhouse gas emissions are reduced by 5% due to global warming, the real GNP growth rate is projected to decrease by 0.78%. This would lead to a significant economic burden on citizens, and its impact would directly lead to a decrease in recreational activities such as golf. While the perception of golf course success may be associated with trophies, as someone who hopes for the advancement of the Korean golf industry, including many golf industry professionals and golfers, I share some thoughts on what could be done differently. First, the focus of bookings, operations, and marketing should shift towards a year-round booking and payment system, changing the paradigm of golf course management. For instance, airline tickets can be reserved and paid for six months or even a year in advance, and hotels also allow bookings months ahead. Why do Korean golf courses insist only on one-month advanced reservations? Who is this policy truly benefiting? Golf courses should not confine themselves within the boundaries of a golf course but should embrace the concept of the "golf travel industry" as a larger category. Embracing this perspective will enable them to manage revenue even amidst changing external environments without being trapped in the well of the golf course. To achieve this, golf courses must undergo digital transformation. Golfers should not have to arrive at the clubhouse for check-in, locker assignment, and payment upon departure. This outdated process should be replaced. Through websites and mobile systems, golfers should be able to make year-round reservations, book tee times, and make payments online. This way, golfers would take charge of the entire process, which not only secures customer data but also allows staff to focus on improving customer service. Second, the approach to sales and marketing should be redirected towards various big user groups. Why do golf courses think that golf booking apps or travel agencies are the only means for bookings? It's beneficial for golf courses to secure more sales channels and increase exposure to different segments of potential golfers for branding and promotions. Yet, why does the industry still hold on to the same strategy after a decade? This policy is for whom? By introducing a real-time booking and payment system through various big user channels, in addition to traditional golf booking apps, golf courses can achieve increased revenue and reduced costs. This will not only fulfill the desires of golf course owners around the world but also enhance service quality and professionalism among staff. Jim Hwang: experienced in golf course operation, consulting, course management, marketing, and M&A in South Korea, the United States, Japan, and China. Consulted numerous golf courses including Sky72, Anyang, Lakeside, East Valley, and Phoenix CC. Currently, CEO of AGL, the world's first golf GDS platform, directly partnering with more than 740 golf courses worldwide. Sources : Golf Industry news (http://www.golfin.co.kr) |
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