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Harbor Dunes Golf Course

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Problem Statement:
Harbor Dunes Golf Course was recently honored as one of the top public golf courses in South Carolina. Harbor Dunes targets the upper end golf market and in the peak spring golfing season, charges fees of $160 per person and golf cart fees of $20 per person. Under their current plans, Harbor Dunes is able to sell a maximum of 20 afternoon tee times. Harbor Dunes was able to sell every morning tee time available for every day last spring golf season, but had trouble selling the afternoon tee times. To prevent this from happening and revenue being lost, Harbor Dunes is trying a tactic that other courses use, which is to offer foursomes that play in the morning the option to play in the afternoon at a reduced green fee of $25 plus cart fee, or $50 plus cart fee.

Quantitative Results

1. Under option #1, the average revenue that is added is $798 per afternoon, meaning a 7.8% increase in total revenue for the afternoon. Under option #2, the average revenue that is added is $905 per afternoon, meaning a 8.8% increase in total revenue for the afternoon. In 5000 trials, 3171 of them were successful versus only 1724 being successful for option #1. 2. The best replay option that I think Harbor Dunes would make the most revenue off of would be option #2. Option #2 had the most successes and also has the highest increase in revenue making it easily the best option for the golf course to choose. 3. Since option #2 produces a higher revenue approximately 65% of the time, adding $905 increased revenue per afternoon, the estimated added revenue for the 90-day spring golf season would be about $81,450. 4. I think the best way to earn the most out of the afternoon replay would be to somehow implement both options. Sometimes using option #1 when it is necessary and using option #2 when necessary. If that was to not work, I would ultimately recommend using option #2 since it generates $81,450 more than Harbor Dunes had before they implemented the afternoon replay option.

With Harbor Dunes earning $10,420 in revenue from the afternoon tee times before adding the replay option, it is clear that they needed to do something to boost that total. With the afternoon replay options, Harbor Dunes would be able to increase that revenue by $81,450 if they implemented option #2 that they presented. This would allow them to keep attracting the upper end golf market while earning the most revenue possible.

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