A Study on Revenue Management Strategy for Golf Course

Kim, Joon-Seok; Suh Yong-Kun

Many golf courses in Korea recently have been faced with decreasing revenues due to severe competition among competitors. To improve the profitability of golf courses, Revenue Management, a well known methodology in industries such as airline and hotel industry, is suggested. Revenue Management is used to maximize the profit of a company by increasing the utilization of its volatile assets. Though widely used, the FCFS reservation policy in Korea does not allow reservations to be made for single parties, and it makes it difficult for golf courses to attract higher revenues. This research investigated the reservation effect of single parties. Using a recently developed mixed integer programming model, which maximizes the revenue of a golf course by creating an optimal tee time schedule, analysis is made. Since the Optimization Model requires an huge amount of time to compute the optimal schedule, it was very difficult to use it in real life. Hence, a new heuristic reservation algorithms, in order to set near optimal tee time schedules, was developed. The new algorithm called FP showed much better results regarding revenues, yields, and rejection rates than the conventional FCFS reservation policies.

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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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