The Yin & Yang of Price OptimizationYin and Yang is the ancient Chinese philosophy of dualism. It describes how seemingly opposite or contrary forces may actually be complementary and interconnected, giving rise to one another as they interrelate.

If having a price optimization solution at your course is the Yin, then having a dynamic distribution strategy for those optimized times is the Yang. There is truly an interplay between high-demand and lower-demand periods throughout the month and the day. And repricing inventory based on that demand is only part of the equation. Being strategic about how the repriced inventory is distributed is also key.

High-demand periods should drive pricing on primary booking channels.

Let’s take high-demand periods first. Using your golf course’s historical booking data, our TruDemand Technology can see how far in advance different hours of the day are booked. This data creates a booking curve that can be used to accurately predict when future demand for tee times will exceed supply, and by how much. Prices can then be raised throughout your primary booking channels for those periods to maximize green fee revenues.

Low-demand periods should drive sales on secondary booking channels.

Pricing low-demand periods should be handled more carefully. Displaying lower-priced inventory on a primary booking channel can dissuade golfers from booking a preferred time, potentially driving down overall prices. While inventory that is not meeting the demand forecast should be adjusted downward until it sells or until demand has picked up, it should not be done on your primary channels.

A dynamic distribution strategy is the solution.

A demand forecast may indicate that significate price reductions are necessary on several tee times to realign pace with the projected curve. But to protect overall price integrity, it should be done through dedicated channels, such as email, text clubs, and online or mobile specials engines or widgets. These channels attract more price-sensitive golfers, allowing you to insulate your primary channels from larger downward price swings.

Find a partner with an all-in-one solution.

A true demand-based pricing solution is complicated enough. When you add in the need for dynamic distribution of the repriced inventory, the solution becomes even more complex. You should consider working with a partner that has an all-in-one solution, like Sagacity Golf. Not only do we provide the most advanced demand-based pricing solutions for the golf industry—we have the Yang too.

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