MILLENNIALS
ARE THEY AN OPPORTUNITY
OR A THREAT TO GOLF CLUBS?
As Managers and Boards continue
to develop strategic thinking and
plan for a sustainable future, we
look over the horizon and analyse
what the next generation of golfers
believe is important.
While the demographic shift may
not impact the industry fully in the
next 3 to 5 years, the demographic
landscape will likely look very
different by 2030. The Millennials
(born 1980-1994) are coming and
the golf clubs that best position
themselves to consider how they
engage with this generation and
understand their expectations will
be well positioned to make it an
opportunity.
It is no surprise that behaviours,
expectations and perceptions vary
greatly between generations. With a
national average age of 62.4 years for
females and 54.4 for men (Source: Golf
Australia - 2016 Golf Club Participation
Report) the sport has operated
steeped in tradition, dominated by
competitions, rules and etiquette. The
Millennials values and expectations
don’t quite align with this model. There
is less interest in competitive events
with a greater focus on enjoyment,
shorter versions of the game and a
more relaxed environment.
14
I GOLF MANAGEMENT AUSTRALIA
The recent 2016 Australian Census
highlights a number of significant
changes in Australia; population
growth, ageing population, housing
affordability and greater cultural
diversity. In the United States,The
Pew Research Centre reported
in 2016 that Millennials have
surpassed Baby Boomers as the
nation’s largest living generation.
Is this good news for golf clubs
and the industry? As a member
of the X-generation I sometimes
feel wedged in the middle. The
Baby Boomers (1946-1964) which
represents 20% of the Australian
population, have ruled the fairways
and the board rooms of golf clubs
for the last 20 years (57% of the
national club golf membership
base is 55 years or older. Source:
Golf Australia - 2016 Golf Club
Participation Report) however as a
generation they are now outnumber
by the Millennials (22% of total
population in Australia - Source:
ABS. McCrindle 2017).
Bernard Salt, a self confessed
Middle Aged Moraliser and leading
demographer wrote an article in
the Weekend Australian Magazine
in October last year, titled “I belong
to a secret society and I am looking
I
SPRING EDITION 2017
for recruits”. The article highlighted
the differences in the attitudes,
behaviour and expectations of Baby
Boomers and Millennials.
Salt took aim at the Millennials in
his article criticising their beloved
hipsters cafes and their frivolous
spending patterns “smashed
avocado with crumbled feta on five
grain toasted bread at $22 a pop. I
can afford to eat this because I am
middle aged and have raised my
family. But how can young people
afford to eat like this? Shouldn’t they
be economising by eating at home?
How often are they eating out?
Twenty-two dollars several times
a week could go towards a deposit
on a house.” The reaction on social
media was immense.
So what does this mean for Golf?
Will Millennials join private clubs?
Do Millennials care about non golf
amenities? How much are Millennials
willing to pay for golf? In the private
club world these questions are
commonplace for managers, club
Boards, membership sales staff,
and anyone charged with the
duty to continuously fill the club’s
membership pipeline with ‘new
blood’.