Leisure industry

INTRODUCTION

In the 21st century, Leisure industry is one of the major industries both in Britain and worldwide.

Many commentators on the leisure industry today regard it as the most important industry of the future. Phrases such as “the leisure explosion” or “the leisure boom” appear with regularity in the financial pages of newspaper, and the leisure industry is regarded as one of the major areas of the future employment growth in the economy. (Chris 1992) .Leisure industry fields include: restaurants, amusement parks, theaters, hotels, gaming places, and sporting arenas. Also one might include spas, gyms, and areas where one can conduct sports, like golfing or boating as part of the leisure industry. (Chris 1992)

All of us know the word experience the most recession, especially in the UK, but the consumer expenditure on leisure was still an important income for the whole economic, also in the employment rate.

The one of the leisure industry which I will analysis is the golf industry .it more and more becoming the leading sport on environmental and social issues.

The Burhill golf and Leisure Limited

The Burhill Golf and Leisure Limited own and operate ten golf clubs in UK. The company has seven pay-to-play golf centers and three private golf clubs, including the prestigious Burhill Golf Club in its portfolio. There are 20 golf courses under its management.(Mintel 2009)And the company run more than the golf; they currently operate two fitness centers.

In the recent development, the company’s reputation as a junior golf coaching centre has been enhanced with a ?30,000 funding from Sport England to develop young golfers. The group has focused on the coaching aspects of the game with each of its clubs having an academy. (Mintel 2009)

PEST ANALYSIS

It’s useful to analysis the external environment, and how they are influence the company currently performance and what goanna change in the future, it’s done by considering the way in which political, economic, social, and technological. And it’s also use within the SWOT analysis, for the further we can conclusion a risk report for company through the PEST analysis.

POLITICAL

In this aspect, i will represent the discrimination in golf, maybe you think that as much as we saw in the 50’s and 60’s, but it still was a problem, the major discrimination in the golf is form the gender. It can back to the 40 years ago, women could not hold the equity right to the men. Many golf club are the “private men’s only club” and give female members limited access to club facilities or bar them from the running of the club. (Lucy Ward, 2007)But they will no longer be able to ban women members from their bars or discriminate in any other way on gender grounds under a shakeup of equality laws unveiled today, the change is outlined in a government consultation paper aimed at rationalizing the UK’s complex web of discrimination legislation. Even though ,the government will also make clear it will not prevent the setting up of private clubs aimed solely at one gender or group, the changes to rules affecting private clubs and associations would mean those with mixed membership could no longer treat women differently. (Lucy Ward, 2007)

ECONOMIC

All of us know the recession from the last year, whatever the big business or the small enterprise, they all suffering in. The recession is a major concern for the golf industry, and the effects are beginning to be felt in early 2009(Mintel 2009)

Another extension problem just like add insult to injury, which was the “Credit crunch”, it deeply affects the company’s financial condition and whole operation, and this phenomenon has universality.

When people start to feel the financial pinch it is also to choice cut back it, especially golf was the expensive sport activity. More than a quarter can’t play as often as they would like to due to financial constraints. (Mintel 2009)(Appendix 1)

Britain’s golf clubs are fighting to survive as cash-strapped players look for less expensive fun. Around half the country’s 2,500 clubs have lost members in the past year, nine out ten have vacancies, and waiting lists have all but disappeared.( Stephen Hayward 2009) More than a dozen clubs have gone bust or been put up for sale in the last 12 months, while food and drink takings in the clubhouse have also plummeted. Many clubs are scrapping expensive membership fees and offering cut-price deals to stem the exodus. (Stephen Hayward 2009)

SOCIAL

Less social time was the major reason cause the decline in the number of the membership. (Appendix 1) Some people said they had to decrease the time in play golf, because they married or busy in work. So how to boost their membership, decrease the barriers to the non-golfer became significant important. One club in Yorkshire has introduced a membership fee of ?99 per year plus green fees, which enables golfers to obtain a handicap and all the other benefits associated with membership. The golfer then pays green fees for each round but is essentially paying only for rounds they play, representing an attractive alternative to golfers. (Mintel 2009)

TECHNOLOGICAL

In the last review, I will analysis the usage of the technology. There is no doubt; the internet access should be being perfected in the gold area, including online booking,

Every club should use it effectively in the normal operations. When design the website for the online booking, firstly, club should pay concern in the convenience; secondly, provide more optional and avoid scheduling confusion; finally, make some promotion only enjoyed by the customer which use online booking. In addition, we also can provide the private customer service in utilize the phone, to tracking for address the problem immediately, and confirm the satisfaction of the service.

RISK ISSUE AND RECOMMODATION

Throughout the analysis, we can find there are many risk and issue faced by all of the clubs. Although, it still have opportunities and rooms for growth, so I will put forward some recommendations correspond the risk issue.

1

Discrimination. In the recession environment, reject the customer equal to reject the money or the profit. We can easily find the women are the large group of the potential customer, not only for them to access, also should offer some service to meet their need, such as spa or massage for the women after they playing.

2 Economic declines. The credit crunch is also taking its toll on golf course memberships. it was the highest risk in the golf clubs, because lose the member that means lose the major operation cost .so the clubs should get some idea to to weather a storm with their customer ,such as members are allowed to transfer membership to another player if they can no longer afford it.

3 Time consuming. Except the economic reason, losing membership cause by they have less time to play. That the measure can be taken by a flexible content course, that means the reservation service should be promote. Moreover, the club should reinforce their conference function, to attract more business travel happening here.

4 Cooperation with other companies. In the last part of PEST analysis, we mention about make use of the internet and telephone. That can be make the service perfected.

In another side, the club can cooperate with some internet distributer, even through the club need to supply a lower price to them, the internet distributer will carry more customers in the future.

CONCLUSION

In the conclusion, during the entire analysis and risk report, The Burhill golf and Leisure Limited should get awareness of the external environment, and realize how this exterior factor affect the internal environment.

The senior management still should pay the highest attention on attracting the potential customer and make the old customer more loyal; expand other leisure activities link with golf is another measure should be taken. Constantly to know what customer actually need and depending it to change your operation plan and marketing strategy, because the speedy descent into the economic crisis will not be recovery in a short time, so the golf industry is likely to face at least several years of having to survive and consolidate.

REFERENCE

Appendix 1 (Mintel 2009)

Base: 266 internet users aged 16+ who play golf

%

I would like to play golf more often but just don’t have the time

51

I would like to play golf more often but can’t afford to do so

28

I really enjoy going to the bar/restaurant before/after I play

25

Golf etiquette and rules (eg dress code) are important to me

22

I prefer golf to other sports because of the social aspect

22

Watching golf on TV prompted me to play

22

I think rules and etiquette should be relaxed to let anyone play at any time

18

I play enough golf as it is and don’t really need to play any more frequently

16

I find the atmosphere in bars/restaurants at golf clubs too formal or ‘stuffy’

13

The exclusivity of golf clubs is part of their appeal

11

A special offer from a club tempted me to give it a go

10

None of these

3