2024 represents the twentieth anniversary of the Hillier Hopkins Golf Club Survey. Initially aimed at the home counties, the survey has grown into a UK–wide study with over 100 participants, sharing valuable results with clubs, whilst also providing key information and benchmarking abilities to boards in their strategic decision-making.
Prior to the launch of this year’s survey, it’s enlightening to look back at how things have changed (and in some cases, remained surprisingly constant) over the lifetime of the survey.
The first thing to note is that significant global events have undoubtedly had an impact on golf clubs.
The effects of the financial crisis of 2008/09 were reflected in a downturn in golf club membership and financial results. However, although the Covid pandemic of 2019/20 was challenging for everyone, golf clubs experienced a notable increase in membership during this period, reversing the decline observed in previous years. Some clubs achieved substantial surpluses, as members continued to pay full subscriptions while operational costs remained low due to course closures, the suspension of rates payments. These surpluses in many cases have been re-invested in the improvement of Club facilities.
However, the economic effect of the war in Ukraine can still be seen in energy prices – and particularly electricity. In 2023, clubs paid an average of £41,000 for annual electricity charges – almost three times the comparison of just £15,000 in 2012. Gas costs have also increased, but the impact has been less, with a current annual average of £12,000 compared to £9,000 in 2012.
A further significant global event has been the impact of climate change and its increasing prominence on the environmental agenda. Clubs frequently flag this when asked in the survey about the changes they expect to affect clubs in the next 5-10 years. In 2023, the need to adapt to environmental and sustainability considerations (with a knock-on financial impact) was high on the agenda for many clubs. As recently as 2018 this was barely a consideration – with clubs expressing more concern at that time about the effects of Brexit!
Total staff numbers at clubs have always been highly variable and dependent on the size and needs of each club in question. However, for much of the survey period they were around the 21-22 level, reducing significantly (to an average of 16) in the aftermath of Covid, before increasing to an average of 26 in 2023. It will be interesting to see if this increase continues or if numbers have stabilised this year.
Despite these fluctuations, the number of clubs with a PGA professional has remained consistent across the lifespan of the survey – with an average of 94% of clubs with a Pro in 2012 and again 94% in 2024. However, it is evident that the method of payment has changed significantly, with 70% being paid a commission in 2010, falling gradually over the years to just 23% in 2023.
Over the course of the survey there has been significant fluctuation in figures relating to club memberships. The number of playing members has both increased and decreased without any consistent underlying pattern. The same can be said of the numbers of joiners and leavers, social members, the number of rounds played and membership activities.
Waiting lists (the proportion of clubs with a list and the average number of people on these lists) have also fluctuated. However, while waiting list figures have fallen in recent years, they are still notably higher than in the earlier years of the survey (46% of clubs in 2023 with a waiting list, compared to just 18% in 2012). This suggests that there is clearly high demand for golf club membership.
The membership results that have remained most consistent will prove a disappointment to some clubs. Despite many actively looking to increase the proportion of younger and female members, between 2012 and 2024 the average proportion of members aged over 50 has risen from 57% to 65%. Junior members have remained at around the 10% level, and female members have remained at 18%. Clearly member diversification is ready for an alternative marketing approach to proactively encourage more females and juniors.
Whilst member referrals have consistently been (and remain) one of the most utilised marketing activities by clubs, there has been a notable decrease in the use of networking and events. Eclipsing face-to-face activities has been the use of social media as a marketing tool. In 2023, this was used by over 40% of clubs, gathering momentum over the last four years, alongside an increasing use of email marketing.
The range of facilities offered by clubs has expanded over the last 20 years and we are now seeing more clubs offering practice grounds, short game practice areas, swing studios, retail shops and even (albeit in smaller numbers) hotels, on-site accommodation, spas and gyms. One of the biggest changes noted recently has been the proportion of clubs with a driving range. While most proprietary clubs have had a driving range throughout the lifetime of the survey, just 20-40% of Members clubs had followed suit. However, in 2023, this figure had notably increased to 77%.
Fees and charges have, as would be expected, increased over the last 11 years. In 2012, just 34% of clubs had member subscriptions exceeding £1,000, compared to a majority of 80% of clubs in 2023. There have also been increases in the proportion of clubs who charge an entrance fee, but not to the same extent – rising from 59% in 2012 to 70% in 2023. Average green fees have risen from a range of £20-£54 in 2012 to £26-£86 in 2023 and consequently there has been a healthy increase in total green fee income.
The proportion of clubs generating over £60,00 in green fees has risen from 45% in 2012 to 80% in 2023. Other sources, such as society income and bar income, have increased in the same period. Bar income is particularly notable, with just 28% of clubs generating in excess of £150,000 in 2012, rising to 70% in 2023. Overall turnover has clearly reflected this, with almost 70% of clubs reporting in excess of £1 million in 2023, compared to less than 20% in 2012.
Costs have also increased during this period, and clubs have seen large rises between 2012 and 2023 in average course maintenance costs (£97,000 to £138,000), course wages (£155,000 to £256,000) and annual general insurance (5% of clubs paying over £15,000 annually rising to 64%). Despite the impact of these cost increases, the average annual surplus reported by clubs has risen from £31,000 in 2012 to £80,000 in 2023.
Let’s end this review of two decades of the golf clubs survey with a key statistic. In 2023, almost three-quarters of clubs reported growth. This continued the recent healthy trend of growth levels with more than 70% of clubs reporting growth in each of the last 3 years. Compare these figures with the 38% recorded in 2012, and the outlook appears very much brighter.
