On the problem of income distribution between Hotels and Golf Courses. Optimize your management account.

Surely many of you are familiar with this problem, especially those professionals who work as managers or commercial directors in golf resort complexes. So that the entire public can understand it, I am going to detail what is the real dilemma that exists today, and what are the possible scenarios that could be projected regarding a correct breakdown policy in these complexes composed of a Hotel and a Golf Course. Golf. Golf.

In general (although there is diversity), a “Golf Resort” complex is usually composed of the following income-generating departments:

Hotel Reception (Rooms)
Restoration
Spa
Pool
Golf

In turn, its management may be governed by the following structures:

Centralized management
Decentralized management
Outsourced asset management

Centralized management is developed from the premise of a vertical management structure, in which all departments are grouped into joint management and marketing lines, in order to achieve the budgeted objectives at a global level.

Decentralized management is governed by a synergistic administration of its assets, providing autonomy to the departments to achieve the objectives set by the property.

The management of outsourced assets is characterized by departmental management subcontracted to third-party companies or different properties, with joint marketing lines and brand policy.

Likewise, we may encounter two situations when reporting results:

A single property in the entire complex
Multiple properties within a group or business partnership, or different properties.

As we all know, the “Golf Resorts” complexes, which are made up of a Hotel + Golf Course, in addition to other departments that complete their offer, the fundamental reason why clients choose to stay in their facilities are:

Practice this sport.
Accommodation of the highest quality and service.
Chill out
Location.

I think the percentages of why customers choose these facilities are obvious. I am not willing to give figures because I am aware that they will vary depending on certain factors. However, depending on the “Core Business” that marks the property objective in its business plan, we may encounter the following scenarios when implementing the internal breakdown of the income generated between a golf course and a hotel:

SCENARIO 1:

HOTEL AND GOLF COURSE MANAGED BY THE SAME MANAGEMENT.

In this situation, and we are not saying that it occurs on all occasions, we can find scenarios of departmental discrimination, where, if we take into account that the “driving engine” of the complex is “Golf”, the percentage applicable to the breakdown of income internal is not directly proportional to the degree of interest and reason why the client chooses to visit your resort or destination. The same would happen in other departments or vice versa.

Consequences:

Inability to achieve budgeted departmental objectives. If the breakdown does not fit the “driving engine” percentage of the complex
Lack of investment and development plans for the golf course. Let us not forget that the field is a living being and needs an annual investment plan.
Loss of quality and service in the field. The lower the breakdown percentage, the lower the possibility of obtaining budget items dedicated to its development.

SCENARIO 2:

HOTEL MANAGED BY A MANAGEMENT SUBCONTRACTING THE MANAGEMENT TO A SUBSIDIARY COMPANY.

In this scenario, the hotel management decides to outsource the management of its golf course to a company specialized in it, following the guidelines although without an individualized marketing system, considering the course as an “appendix” of the hotel.

Consequences:

Lack of a joint trade policy.
Human resources management endorsed by a company with a different vision than that of the tour operator.
Loss of income due to lack of experience in income generating segments through cross-selling techniques in golf resorts.

SCENARIO 3:

HOTEL AND GOLF COURSE MANAGED BY DIFFERENT MANAGEMENTS UNDER THE UMBRELLA OF THE SAME PROPERTY.

It will all depend on where the resort property comes from. Depending on the business sector in which you operate, we will know the trend, objectives and results you wish to achieve. Generally, these types of situations generate synergy policies between both managements (of the hotel and the field), developing a conflict of interest sponsored under the roof of the autonomy they have to develop the budget plans approved by the property.

Consequences:

The balance of the “propulsion engine” is decided by the property of the complex. In your business plan you will include your main core business.
Brand identity issues.
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