Applying pricing and revenue management in the golf industry: Key challenges

Revenue management (RM) principles have proven to be a key success factor for airlines and hotels. Considering the common characteristics of these traditional industries with fixed and perishable capacity, RM practices have started to extend to new frontiers, one of which is the golf industry. Tee‐times are perishable inventory with a high potential for differential pricing by peak versus off‐peak periods, which can differ by season and/or location. In this article, we discuss the key challenges in the golf industry and solution approaches for demand forecasting, price optimization and construction of tee‐sheets (capacity optimization).