Exploring the Optimal Zone in Golf's Mutual Membership Schemes
In the current trade squabble, 'reciprocal' makes you think of bilateral tariffs, but in the realm of golf, it carries a gentler history. Previously, before the emergence of extensive club management networks, reciprocal play was frequently arranged informally through pro headmasters placing calls on behalf of members.
The forerunner for contemporary reciprocity programs was Signature Gold, launched by Invited (previously known as ClubCorp) in the late '80s. This groundbreaking member advantage granted access to a network of clubs beyond the home course. Such deals were uncommon at the time, with reciprocal play generally being informal agreements between club pros. Signature Gold standardized and expanded the concept, offering consistent privileges across a growing portfolio, setting the model for subsequent programs. The long-lasting Signature Gold initiative persisted through ClubCorp's acquisition by KSL Capital Partners in 2006.
David Pillsbury, Invited's present CEO, shares an intriguing tale. While at American Golf, Pillsbury launched a private club division in 1992, offering 13 clubs. Following an acquisition spree, the division boasted 60 clubs. Pillsbury admits to borrowing Signature Gold's idea upon launch, nicknaming it Platinum. Much like Gold, Platinum focused on broadening member access beyond their home clubs, converting exclusivity into a network-wide privilege.
In response to the Great Recession, Gold underwent a facelift and transformed into ONE (One Network of Exclusive Clubs). The program married reciprocal play with a 50% discount on food at a member's home club. Per Pillsbury, this initiative combated financial strain during the crisis and boosted club-related spending.
Fast forward to the present, and Invited's modern take on reciprocal play has seen a fresh revamp. Named XLife, it presents members with extended club access across the network, shifting the focus from half-pipes to full-wedge shots. XLife currently boasts 57% member adoption, up from its initial launch in 2021, with over 100,000 rounds of reciprocal play logged in 2022.
XLife offers three tiers of reciprocity, catering to various membership levels. The entry-level provides access to clubs outside a 50-mile radius of a member's home club, including 130 Invited clubs and an extra 200 via the extended network. The next tier, XLife All Access, enables members to play clubs within the local area for a fee. Lastly, a color-coded system divides clubs into tiers, with fees adjusting based on membership level. A small fee applies for clubs higher up the chain, but lower clubs charge just a cart fee for visiting members.
As golf's popularity soars, the scarcity of surplus tee times—essential to implementing reciprocal play—tightens. Managing expectations carefully is crucial to ensuring core member privileges remain protected. Both Invited and Troon address this challenge by prioritizing club members.
Troon manages hundreds of global golf courses, with a substantial number of daily fee and resort courses. Their private club members enjoy reduced-rate bookings for themselves and up to three guests on this extensive roster via their advantage program. In addition, Troon arranges private club to private club reciprocity within their portfolio at a preferred member rate through their Troon Privé privileges platform.
Rob DeMore, Troon Privé's Executive Vice President, frames their program as an "added draw." While not a primary driver for club membership, reciprocity enhances the overall Member experience. The specifics of these reciprocal arrangements vary based on factors like club tier and seasonality. During peak seasons, higher-tier clubs charge adjusted pricing but may offer significant discounts, especially outside of peak seasons.
Balancing exclusivity with expanded member access can be a delicate art, particularly at popular clubs. Invited tackles this challenge by curtailing the number of tee times available for XLife play, allowing participating clubs to control inventory based on their availability. This ensures prized members' home clubs retain access to prime tee times while continuing to offer XLife benefits to non-local members.
- The concept of reciprocal play in golf was systematized and expanded with the launch of Signature Gold by Invited in the late '80s, offering golf member benefits to access a network of clubs beyond their home course.
- Country clubs and private clubs often participate in reciprocal play systems, allowing members to enjoy golf at different clubs within the network, such as the XLife program offered by Invited.
- Troon, a company managing hundreds of golf courses globally, offers its private club members reciprocal play benefits, allowing them to play at other private clubs within the Troon portfolio at reduced rates.
- The XLife program by Invited offers three tiers of reciprocal play, catering to different membership levels, providing extended access to Invited and network clubs for members and offering preferential rates for visiting play.
- The scarcity of tee times is a challenge for implementing reciprocal play, and both Invited and Troon prioritize their core members by managing access to ensure prime tee times are reserved for them.
- Reciprocal play is not the primary driver for country club membership, but it serves as an added benefit and enhancement to the overall Member experience, as noted by Troon Prive's Executive Vice President, Rob DeMore.
