2022 Private Club Industry Trends and 2023 Predictions
In Capstone Hospitality’s “State of the Private Club Industry” report in July 2022, we explored private club industry trends we were witnessing at that point. Today, we’re sharing a holistic recap of these insights for 2022 as well as noting some predictions for 2023. We also have some membership sales tips you’ll want to keep handy as we head into the new year.
The most important takeaway we want you to know is that 2022 was the tail-end of the pandemic boost in membership sales. With life somewhat returning to normal and activities other than golf filling the calendars again, it’s crucial to have a proactive private club membership sales strategy.
First, let’s see what else happened in 2022 so we can take appropriate action in 2023.
2022 Top 5 Private Membership Club Insights
Below are the private club industry trends that Capstone Hospitality experts recognized as notable learnings from 2022.
Organic incoming leads have normalized to pre-pandemic numbers
Without the Covid-19 boom fueling the golf industry, the organic incoming leads numbers are beginning to decline and plateau again to our previous baseline.
While many golf club memberships sales teams have witnessed the creation of waitlists and an overwhelming influx of sales leads, Capstone Hospitality predicts 2023 will see the need for proactive membership marketing tactics to continue to fill those pipelines.
2. The average time from inquiry to sale has increased from 12 days to 28 days
With golf memberships increasing in popularity over the pandemic, it makes sense that these prospective members were ready to convert quickly and join the golf club; the sooner they had their golf club membership settled, the sooner they could join their friends on the course when there were few other ways to socialize outside the house.
With other socializing options now on the table, prospective golf club members are taking more time to consider joining.
3. Attrition rates are likely to continue increasing
Along these same lines, families are beginning to spend their money on other activities now that school and work has found their groove. With increased travel and opportunities to spend discretionary income on other pursuits, golf club membership sales leads aren’t as likely to land in your lap in 2023.
4. Initiation fees have increased universally
Capstone Hospitality has found some positive trends in the market as well. Initiation fees have increased across all types of private golf clubs. World renowned clubs, new private clubs - they have all seen this increase across the board.
Increased initiation fees can not only lead to new amenities and updates in the private club itself, but they can also be reinvested into generating sales leads. We have plenty of recommendations on how to effectively grow your golf club membership below.
5. The number of golf membership sales have increased
Not only have the initiation fees themselves increased, but the number of golf memberships has increased as well in 2022. This is a promising insight as golf remains a popular hobby despite decreasing numbers since the pandemic and an uncertain economy.
2023 Golf Club Membership Predictions and Recommendations
With the 2022 private club industry trends in mind, Capstone Hospitality has several predictions on where the market will go in 2023 and recommendations on how to stay ahead. Our team can help you generate sales leads effectively and efficiently.
What to Expect in Golf Club Membership Sales in 2023
Increasing sales leads through membership marketing and other means will be crucial to continuing to grow your private club in 2023. Thinking outside the box and keeping up with the latest technologies is non-negotiable because you want to be able to produce lots of high quality content for your prospects.
Confirming your branding is consistent and engaging will also help your club stand out when it matters most. This can be done through easy-to-use prospect forms, a visually appealing membership packet or e-brochure, a clean website, professional photo or video assets and more.
Below is a summary of the top 3 differentiators that will set private clubs apart this year:
Intentional and diverse lead generation is more critical than ever
Making a great first impression can lead to more sales
Becoming familiar with A.I.’s uses in club marketing and communications is advantageous
Capstone Hospitality’s Tips for Generating Sales Leads in a Competitive Market
With the changing competitive landscape in 2023, Capstone Hospitality knows you need to be on the top of your game to hit your sales goals this year.
Even if you have seen consistent success over pandemic years, the numbers show that the number of “easier” prospects to convert are beginning to dip; in order to see the same level of success that you and your stakeholders have become accustomed to, we have some tips to help you generate more sales leads.
Track your golf membership sales data to note your strongest and weakest sales lead pipelines as well as behaviors that have led to conversions and rejections
Perform a membership sales audit to understand the reality of your process as you head into a more competitive time
Consolidate your golf membership categories and offerings in order to simplify choices and encourage quicker decision-making
These three steps - plus ensuring your branding is on point, your team is familiar with A.I. content creation and your membership marketing team is brainstorming other ways to bring in sales leads - will help you continue the success in 2023.
We recognize this is not an easy task, which is why Capstone Hospitality seamlessly integrates a highly trained sales director into your private club to customize your strategy and execute these tactics. In fact, it has been said that hiring our team is more effective than filling that Director of Sales role you may have open.
Take action today and get ahead of tomorrow with our expertly trained team.
