Article ID: | iaor20061946 |
Country: | United Kingdom |
Volume: | 1 |
Issue: | 2 |
Start Page Number: | 111 |
End Page Number: | 120 |
Publication Date: | Jul 2002 |
Journal: | Journal of Revenue and Pricing Management |
Authors: | Schruben Lee W., Kimes Sheryl E. |
Keywords: | simulation: applications, sports |
Golf courses have two strategic levers, round duration control and demand-based pricing, that they can deploy in a revenue management programme. Before embarking on a revenue management programme, golf courses must first clearly define their capacity. This study uses simulation to study the most controllable factor of capacity: the tee time interval. Intuitively, reducing the interval between parties will lead to an increase in revenue; however, this paper shows that interval reductions may actually lead to decreased revenue.