A Golf Research Presentation

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A Golf Research Presentation
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Sponsored by
Prepared and presented by Market Trends Pacific,
Inc.
November 5, 2003
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U.S. Golf Industry

• Golf is a highly popular recreational activity in
  the U.S. with over 15,000 golf facilities in the
  country
  
• The golf travel market consists of nearly 12
  million golfers playing 72 million rounds of golf
  annually, out of 27 million-plus players
  nationwide
• Despite downturns in the economy, golf spending
  remains steady spending in 2001 totaled more
  than 23 billion, up 2.9 over the previous two
  years, and another 26 billion in golf travel, up
  0.4 over the previous three years
• Typical U.S. golf traveler
• makes 6.6 golf trips per year
• stays an average of 3.95 days per trip
• spends an average of 1,114 (or 282 per day) per
  trip (lodging, local transportation, food,
  entertainment, lessons, gifts, etc. This does
  not include transportation expenses to
  destination)

Source National Golf Foundation, Economic
Impacts of the Florida Golf Course Industry
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Hawaiis Golf Industry
The Take Aways

• Hawaii golf visitors are active, higher spending
  travelers Affluent consumers Golfers do more
  than golf

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U.S. Market Rating of Hawaii by Spending Level
Hawaiis visitor spending levels do not reveal
much distinction in their assessment of Hawaii,
with a few exceptions. Those who spend more are
attracted to its adventure and golfing activities.
Quarter 2, 2003
Source Hawaii Advertising/MarketingEffectiveness
Study, Quarter 2 2003
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Hawaii golfers are affluent consumersAverage
Household Income of Golf Vs. Overall Visitors
Source DBEDT 2001 Visitor Satisfaction Survey
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As incomes rises so does a visitors propensity
to golf
Percent of visitors who golf during stay in
Hawaii by annual household income.
Source DBEDT 2001 Visi
tor Satisfaction Survey
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Golf highest penetration among small, but higher
spending romance segment
Percent of visitors from each lifestage segment
who golfed during visit to Hawaii
Source DBEDT 2001 Visito
r Satisfaction Survey
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Golf visitors are independent, active vacationers
who do more than golf
Top activities engaged in by U.S. West Golf
Visitors. Source DBE
DT 2001 Visitor Satisfaction Survey
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Golf visitors are independent, active vacationers
who do more than golf
Activities engaged in by U.S. East Golf
Visitors. Source DBE
DT 2001 Visitor Satisfaction Survey
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Attracting The Golf Travel Market To Hawaii
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Attracting The Golf Travel Market To Hawaii

• Identify the profile of golf visitors to Hawaii
• Understand decision-making process and role of
  golf in process
  
• Identify attitudes, behavior and habits related
  to golf and golf-related travel
  
• Identify attitudes, behavior and habits related
  to travel to and playing golf in Hawaii
  

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Methodology

• Multi-phased, multi-method
• Self-administered survey of PGA TOUR Partners
  Club members
  
• April May, 2002 and 2003
• 4,000 mail out 539 in 2002, 585 in 2003 usable
  surveys
  
• Seven states (CA, NY, NJ, MN, WA, TX, IL)
• Self-administered survey of PGA tournament
  attendees
  
• June August, 2003
• 1,683 mail out 213 usable surveys
• Three tournaments (Byron Nelson, Western Open,
  Buick Classic)
  
• Self-administered survey of golf visitors to
  Hawaii
  
• June August, 2003
• 1,180 usable surveys
• Koolau, Hawaii Prince, Hapuna, Waikoloa, Mauna
  Kea, Wailea, Makena, Kauai Lagoons
  
• Analysis of nearly 2,000 golfers
• Conducted using SPSS, an in-house statistical
  package
  

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A Note On Presentation

• Hawaii Sample refers to those surveyed in
  Hawaii at golf courses
  
• Mainland Sample mostly refers to PGA TOUR
  Partners Club members
  
• Illustrates similarities, validates findings

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Profile of Golf Visitors To Hawaii
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Demographic Profile
All figures represent visitors to Hawaii
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Golf Habits
All figures represent visitors to Hawaii
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Leisure Activities
All figures represent visitors to Hawaii
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Overall Travel Behavior
All figures represent visitors to Hawaii
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Popular Destinations
Mainland Sample only. Figures are for leisure,
business or both types of travel. Not asked
among Hawaii sample.
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Hawaii Travel Behavior
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Selection of Destination For Leisure Travel
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Decision-making Process Mainland Sample
Red very important, Gray somewhat important
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Decision-making Process Hawaii Visitors
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Not As Important

• Mainland Sample
• Familiarity with destination
• Uniqueness
• Culture/Historical/Education
• Availability of kids activities
• Word-of-mouth
• No crowds/non-tourist
• No previous experience
• Advertising

• Hawaii Sample
• Availability of entertainment
• Word-of-mouth
• Uniqueness
• No crowds
• Culture/Historical/Education
• No previous experience
• Availability of kids activities
• Advertising

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Importance of Golf in Decision-making Process
Hawaii Sample
Mainland Sample
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Overall Travel Behavior Related to Golf
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Frequency Of Taking Golf Vacations
Hawaii Sample only. Mainland sample near
identical.
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Additional Analysis Hawaii Sample

• Older (50 years) visitors to Hawaii are much
  more likely to take golf vacations more than once
  a year (56 vs. 33)
  
• Households with no children are much more likely
  to take golf vacations more than once a year (51
  vs. 35)
  
• Repeat visitors to Hawaii are much more likely to
  take golf vacations more than once a year (47
  vs. 35)

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Destinations Traveled Played Golf
Hawaii Sample
Mainland Sample
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Booking Golf Vacations
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Sources of Information
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How far in advance do you make your golf
arrangements?
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Additional Analysis
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Purchase Golf Package
Mainland Sample
Hawaii Sample
Q Do you generally purchase golf packages?
Q Did you purchase a golf package?
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Additional Analysis

• Frequent golfers (11 rounds per month) are much
  more likely to purchase golf packages
  
• Older golfers (65 years) are much more likely to
  purchase golf packages

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Making Tee Times
Hawaii Sample
Mainland Sample
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Additional Analysis

• Frequent golfers (11 rounds per month) are much
  more likely to make tee times before arriving at
  their destination
  

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Method of Booking Tee Times
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Additional Analysis

• Repeat visitors to Hawaii are much more likely to
  secure their own tee times

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Importance of Guaranteed Tee Times
Hawaii Sample only.
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Securing Tee Times Via Internet
Hawaii Sample only.
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Additional Analysis

• Younger golfers (under 50 years) are much more
  likely to use the Internet to book tee times
  
• Those who consider golf as an important factor in
  their selection of a vacation destination are
  much more likely to use the Internet to book tee
  times

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Golf Experience In Hawaii
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On your last visit to Hawaii, did you golf?

• Why not?
• Not a golfer at the time
• Not enough time
• Went to Hawaii for other reasons
• Too expensive

Mainland Sample only.
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Compare Hawaii Golf Courses To Other Golf Courses
Played
Hawaii Sample
Mainland Sample
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Top Five Golf Courses
Mainland Sample only.
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How do you select Hawaii golf course?
Hawaii Sample only.
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Not as important
Hawaii Sample only.
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When decision made to play course?
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Did course meet, exceed or not meet your
expectations?
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Importance Vs. Satisfaction
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Additional Analysis

• Layout of course (i.e., design and difficulty) is
  key driver to repeat play at golf course

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Likelihood To Recommend/Return
Likelihood To Play Course Again
Likelihood To Recommend Course
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Golf Expenditures In Hawaii
Avg rounds played this visit 4.23, Avg rounds
on course this visit 2.27, Avg number of visits
to this course 4.82
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Golf Expenditures in Hawaii
Avg rounds played this visit 4.23, Avg rounds
on course this visit 2.27, Avg number of visits
to this course 4.82
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Golf Expenditures in Hawaii
Avg rounds played this visit 4.23, Avg rounds
on course this visit 2.27, Avg number of visits
to this course 4.82
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Additional Activities During Visit To Hawaii
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Likelihood of Returning To Hawaii
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Television Viewership of Sporting Events
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Frequency of Watching Televised Golfing Events
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Frequency of watching
Red all the time, Gray sometimes
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How well does event portray Hawaii experience?
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Degree that watching golf event influences
interest in visiting location
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Perceptions of Hawaii as Golf Destination
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Awareness of Aloha Season
2001
2003
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Summary
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Summary

• What do we now know?

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Summary

• What do we do with this knowledge?

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Mahalo!
Prepared and presented by Market Trends Pacific,
Inc.
November 5, 2003