The Man Google Recognized: "Connecting All Golf Courses Around the World as One" | 12/12/2024 |
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| Jim Hwang, CEO of AGL| Search a golf course on Google and instantly book and pay| A groundbreaking Korean startup powering this systemLast month, I visited the headquarters of AGL in Achasan-ro, Gwangjin-gu, Seoul. The six-story building, located behind a well-known math academy near Guui Station on Subway Line 2, catches the eye with the blue, red, yellow, and green Google logo at its entrance. Inside, each floor buzzed with lively yet focused meetings. The atmosphere was free-spirited and intense, with employees from diverse nationalities, including South Korea, Germany, and Taiwan. To an outsider, it might have looked like a hub for Google Korea. In reality, this place has no affiliation with Google Korea. However, it serves as the epicenter for "Google Golf" globally. AGL, with its mission of "real-time golf bookings worldwide," shocked the industry last summer when it partnered with tech giant Google. It's no wonder the news made waves—after all, a Korean startup, founded in 2019, managed to win over Google. Just as searching for a restaurant on Google brings up a reservation screen, users can now search for golf courses worldwide or click on the red pins on Google Maps to book and pay instantly. This system is powered by AGL, a leading golf tech company from South Korea. Every time a reservation and payment are made, AGL earns a transaction fee, forming the backbone of its business model. Traffic Comparable to the Number of FIFA Member NationsWhat changes have AGL and the global golf market experienced during the 100 or so days since partnering with Reserve with Google? Fresh off a business trip to Hawaii, Jim Hwang, CEO of AGL, shared two striking numbers: “205” and “5000.” “Before integrating with Google, international golfers accounted for about 20% of AGL’s user base. Now, they make up 85%. Initially, we had golfers from around 20 countries, but today, golfers from over 205 countries are using AGL’s services.” "205 countries?" It’s a staggering number that warrants a second look—close to FIFA’s 211 member nations. Hwang explained, “When we analyze the web traffic for TigerBooking, AGL’s service powered by Google, the numbers show visitors from 205 countries. Traffic from English-speaking countries has surged, and we’re seeing significant growth in European countries like France, Italy, Belgium, Sweden, and the Netherlands.” Remarkably, this explosive growth has occurred with little to no marketing. "Compared to pre-launch, our traffic has increased by more than 5000%. Our challenge now is to convert this interest into actual bookings and payments," Hwang noted. Currently, the conversion rate from traffic to bookings and payments stands at an impressive 50%. However, AGL plans to significantly boost this figure through joint marketing efforts with Google. Book and Pay for Golf Courses in Southeast Asia, the U.S., and Europe with Just a Few ClicksThe number of Korean golfers booking overseas golf courses through Google has risen significantly. Compared to the previous year, when only TigerBooking data was available, bookings increased by 112%. Since the launch of the Google service, reservations for golf courses in the U.S., Spain, Portugal, and France have more than doubled, marking a notable shift. Korean golfers, who traditionally focused on Japan and Southeast Asia, are now broadening their horizons. What about foreign golfers visiting Korea? Hwang noted, “Currently, about 100 golf courses in Korea, mostly in Jeju, are available for overseas reservations and payments.” However, he pointed out a challenge: “Many golf courses still hold onto a closed culture, hesitating to welcome foreign guests. Even though we’re providing the reservation and payment system for free, incurring losses to promote Korean golf courses abroad, this resistance is unfortunate. We hope to drive inbound tourism through this initiative.” Despite these hurdles, Hwang emphasized their goal of integrating over 200 domestic golf courses into the system by the end of the year, expanding accessibility for both Korean and international golfers. Lufthansa, Europe’s Largest Airline Group, Shows InterestDespite the venture capital downturn, AGL secured a ₩30 billion Series B investment from venture capital firms of Korea’s four major financial groups, demonstrating its potential even before partnering with Google. Now, with Google as a partner, AGL has reached a position where it’s receiving attention from top global companies. Among them is Lufthansa, Europe’s largest airline group, which approached AGL first and is currently in discussions for a proof-of-concept (PoC) collaboration. Hwang explained, “Previously, the concept was that when consumers booked a flight, information about golf course reservations at the destination would appear. We’re reversing that with a ‘golf-first’ approach—when a user books a golf course, they’ll automatically receive flight booking options. From flights, we can then connect to hotels, rental cars, restaurants, and more.” When asked if there’s more big news in the pipeline following Google and Lufthansa, Hwang hinted, “Partnerships with industries like airlines, hotels, and car rentals rely heavily on API integration, which is critical. My recent trip to Hawaii was part of laying the groundwork for such collaborations. I’m optimistic that we’ll have exciting news by the first half of next year.” He added, “Fifty-five percent of the world’s golf courses are in the U.S. To grow as a global golf tech company, establishing brand recognition and influence in the U.S. market is essential. While we’re still in the early stages, we’re preparing to deliver news that will make waves in the U.S. market soon.” Yes, GDS Is the Answer!At this point, a question naturally arises: Why did Google choose to partner with AGL? With numerous similar companies in the U.S., what made AGL stand out? CEO Jim Hwang attributes it to AGL's creation of the world’s first golf GDS (Global Distribution System). Hwang, who started his career managing part-time course operations at U.S. golf courses and gained experience working at Japanese courses and handling M&A deals, has spent 20 years in the global golf industry. Over a decade ago, he began conceptualizing this very business model after discovering the power of GDS in the aviation industry. He was inspired when he learned how a U.S. low-cost airline managed to fill every seat by leveraging GDS, a system that consolidates flight schedules, availability, and reservations. “At that time, selling golf course tee times was like hitting your head against a brick wall. You had to hand out flyers at practice ranges, pitch to people in bars, and even then, it was a constant struggle. When I discovered GDS, it was an ‘aha’ moment,” Hwang said. He envisioned introducing GDS to the golf course industry, an integral part of travel, and assembled a team of skilled developers to build the system. With this foundation, he set his sights on integrating with Google, the world’s leading platform. Hwang personally reached out to convince individual golf courses, national golf associations, and tourism boards across the globe.Today, AGL’s network includes over 2,000 partner golf courses in more than 160 cities across 30 countries. Among these are iconic venues such as Royal County Down, ranked No. 1 in Golf Monthly’s “Top 100 Courses in Great Britain & Ireland 2023/24”; Royal Portrush, host of next year’s The Open; and Pebble Beach Golf Links, a dream destination for golfers worldwide. Infinite Competition? Bring It On!With annual travel-related revenue exceeding ₩40 trillion, Google was seeking a new growth avenue in golf after success in flights, hotels, and car rentals. They were looking for a partner that had developed a GDS (Global Distribution System) akin to those in aviation or hospitality. However, even major U.S. booking companies lacked such a system for golf. That’s where AGL came in. Having persistently pitched its solutions to Google’s headquarters in Mountain View, Silicon Valley, AGL finally got its chance. The testing and meetings spanned 18 months, but the service launch was quicker than anticipated. By leveraging its golf GDS, AGL had already partnered with over 50 global online travel platforms (OTAs) such as Expedia, Agoda, and Booking.com. This made it an obvious choice for Google, which now plans to use its partnership with AGL to drive significant revenue growth by integrating golf into its broader travel services ecosystem. For hotels, searching on Google reveals a list of booking platforms like Hotels.com and Expedia, each displaying their respective nightly rates. In contrast, when users search for golf courses, an “Online Booking” button appears, directly linking to TigerBooking. While Google refers to all these platforms—Hotels.com, Expedia, and TigerBooking—as “providers,” golf currently has just one major player: TigerBooking. Despite enjoying this near-monopoly, AGL CEO Jim Hwang envisions a future where golf resembles the hotel industry, with multiple providers competing. “While TigerBooking handles customers, our core identity remains a B2B business. Think of TigerGDS as the highway we’ve built, and we serve as an aggregator that connects providers to it,” he explained. AGL’s ideal scenario involves established OTAs in the hotel industry becoming providers for Google Golf. Interest is already growing, particularly among Japanese companies. While this might seem like a competitive threat, Hwang views it as an opportunity. He pointed out that TigerBooking is currently the only platform capable of offering multilingual support and integrating localized payment systems such as Google Pay, Apple Pay, and Alipay. This unique capability positions AGL to capitalize on new business opportunities by sharing its technology and expertise. Until the day when value-for-money becomes the standard in golf courses worldwide.CEO Jim Hwang, who frequently plays at renowned courses like St. Andrews Old Course, Trump Turnberry, and Royal Portrush, shared his insights on the cultural differences between golf courses in Korea and around the world. He pointed out that while Korea's golf culture is evolving in a more refined direction, green fees remain too expensive. "As is well known, in the U.S., there are courses that charge 500,000 or even 1,000,000 won for green fees. But on average, green fees are much cheaper than in Korea. In Korea, golf courses seem to focus more on auxiliary services rather than the core function of the course itself. This is a significant barrier for the new generation of golfers. For instance, there's no 50% discount for junior golfers. Golf courses may not have problems with their business for a few more years, but what will happen 10 or 20 years down the road?" Hwang is working to introduce a price-comparison model for golf courses, similar to what is already in place for hotels. "After GDS was introduced in the airline and hotel industries, both grew their ecosystems by up to five times. Golf can experience the same growth. If golf courses offer tee times at reasonable prices, provided through more diverse channels in real time, it will lead to greater sales and expanded revenue." Hwang also explained that AGL stands for Above Golf and Links, symbolizing their goal to connect the world beyond golf. The "Tiger" in TigerGDS comes from Hwang’s zodiac sign, as he was born in the Year of the Tiger. After spending time in Hawaii, Hwang is now in Dubai attending a global forum and recruiting new talent. In November, he spent 21 days abroad. His goal is to personally connect the world, and it will be exciting to see what new developments he brings back. Source : The Seoul Economic Golf Monthly ( (https://www.sedaily.com/) |
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