14 Golf Operations in Clubs - CMAA

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508 Chapter 14 Outsourced caddies. These are caddies who work directly for a company that manages caddie programs. The club hires the company and the company supplies caddies upon request. The benefi t of this program is that by hiring the company in lieu of employing the caddie directly, it alleviates any independent contractor issues. Golf Car Rentals Almost all clubs rent golf cars for member usage. Some clubs allow members to use golf cars that they (the members) personally own. Usually a usage fee or trail fee is charged to members who use their own cars. This is collected to help pay for maintenance and repairs to the golf car paths. At a small number of clubs, members are also allowed to store their golf cars at the club for a fee. The trend for most clubs that currently allow members to use privately owned golf cars is to slowly phase these cars out by not allowing any member who uses a private car to replace that car with a new one, and not allowing other members to start using a privately owned car. Clubs that allow privately owned cars should specify their color and size so that there are no “eyesores” at the club. Passengers on privately owned cars oft en have to pay the club’s single-rider rental rate. Clubs that allow members to use their own cars should make sure that the members have adequate liability insurance to cover accidents involving their vehicles and that the club is named on their insurance policies as an additional insured. Golf car rentals are administered through the golf pro shop. When a member registers to tee off and requests a car, a key for the assigned car is issued to the member and he or she is notifi ed of the car’s number and location. If the member stores his or her bag at the club, oft en the staff will have the member’s bag already on the back of the car, if the car was reserved ahead of time. There should be a designated area to which members can conveniently return cars aft er a round of golf. It’s common for clubs to have a policy requiring golf cars to be used during peak golf course usage times, such as Saturday mornings. This increases club revenues through rentals and promotes faster play. Compulsory car usage is strongly opposed by avid walkers, however. These individuals either prefer to walk for the exercise or believe that golf cars damage the course. The car rental fee can be based on many factors, including a set price for 18 holes or 9 holes played, weekday and weekend rates, and prices for one rider versus two riders. Some clubs have one pricing structure, others include combinations of these factors to determine price. Golf car rental fees average $22 for 18 holes and $13 for 9 holes. 6 Discount programs can increase golf car usage. Examples of such programs include books of coupons for car rentals that are sold at a reduced price; frequent rider programs, where members get a free rental aft er renting golf cars for a certain number of times; unlimited monthly golf car rentals at a set fee; and so on. The number of golf cars a club should have is based on the demand for car rentals. Some clubs estimate that number by calculating one golf car for every eight playing members. The fl eet size is considered adequate if only 75 percent of the cars are rented on an average day. The club should have 25 percent more golf
Golf Operations in Clubs 509 cars than its daily average rental to handle peak-demand periods and allow for cars taken out of service for repairs. According to the Club Managers Association of America, the average number of golf cars for clubs is 64. 7 The club should have an insurance package to cover its fl eet of golf cars. The policy should provide for both liability and property damage. Golf Car Maintenance. The head mechanic or car-maintenance supervisor should keep all golf cars in proper working order and service them according to the manufacturer’s specifi cations. Golf cars should be cleaned and serviced aft er every use. Few things are worse in a member’s eyes than a golf car that is dirty, runs poorly, or stops running in the middle of a round of golf. The PGA’s Golf Car Fleet Maintenance Handbook is a good resource for information on how to maintain a golf car fl eet. Golf car batt eries should be checked for complete charges or gas tanks checked to make sure they have adequate fuel before the cars are delivered to the pickup area. Service should include checking the batt ery charge levels, batt ery terminals, batt ery water level, tire pressure, brake operation, steering action, cleanliness, and so on. At the end of the day, the staff should clean the interior of the car, replace pencils and scorecards, and wash the exterior. The car should be parked in the golf car barn. If the golf car is electric, the charger should be plugged in and turned on; if the car is gasoline-powered, the tank should be refi lled. Before leaving at the end of the day, the staff should secure the golf car barn and make sure that the fan is turned on. A rotation system should be in place so that the same cars are not used day in and day out when play is slow and all cars are not used. All daily, weekly, monthly, and seasonal maintenance as well as repairs should be recorded and the records stored in an easily accessible place for all staff members. Clubs should replace their golf cars every three to fi ve years. (According to the Club Managers Association of America, the typical golf car is replaced every four years. 8 ) A fl eet of cars can be replaced entirely at one time or a portion at a time. Clubs with concerns about their cash fl ow may replace a quarter or a third of their golf cars every year. Leasing versus Purchasing Golf Cars. The question of whether a club should lease or purchase its fl eet of golf cars has been bantered around for years. Thirtyfour percent of golf clubs own their cars, while 40 percent of country clubs own their cars. Forty-nine percent of both golf clubs and country clubs lease their cars. The pro owns the cars at one of the golf clubs and at four of the country clubs in the 2004 survey. The cars are leased by the pro in one golf club and in one country club. Seven percent of golf clubs have members who own their cars; this number falls to fi ve percent among country clubs. Approximately 34 percent of clubs own their golf cars; approximately 49 percent lease their cars. (At the rest of the clubs, the members own their cars.) 9 Many variables aff ect a club’s decision. Proponents of ownership argue that non-equity (for-profi t) clubs that are well capitalized, have a healthy debt-equity ratio, and have the staff to properly service the golf cars will benefi t from the
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