A Study on Revenue Management Strategy for Golf Course (골프장 수익관리전략에 관한 연구)

Kim, Joon-Seok (김준석); Suh Yong-Kun (서용건)

A Study on Revenue Management Strategy for Golf Course

Journal of Tourism Sciences
Abbr : JTS
2014, 38(4), pp.185-203
Publisher : The Tourism Sciences Society Of Korea
Research Area : Social Science > Tourism

Kim, Joon-Seok ¹, Suh Yong-Kun ²

¹세종대학교 경영대학
²제주대학교

Accredited

ABSTRACT

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.

KEYWORDS

Revenue management, Reservation policy for golf course, Mixed integer programming

Citation status

* References for papers published after 2023 are currently being built.

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Journal of Tourism Sciences 2023 KCI Impact Factor : 2.7