Waitlist Woes: COVID Increased Interest, Now What?

By: JENNIFER McNALLY | club-mgmt.com
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In the wake of the COVID-19 pandemic, there has been an unprecedented surge in interest in private clubs. That interest has led to many clubs experiencing a significant increase in membership waitlists. Club Benchmarking, the provider of club-specific business intelligence tools and services data, reports that before the pandemic, about 25 percent of clubs with golf had waitlists. That percentage has now doubled to about 50 percent.

Supply and Demand Dynamics

According to Charles D. Wheeler, General Manager of Laconia Country Club, the primary reason for the surge in waitlists is a simple case of supply and demand. As people found themselves reintroduced to the world of golf during the lockdowns, the demand for private club memberships skyrocketed. Golf, known for its outdoor and socially distanced nature, became a popular recreational activity, driving a wave of interest in exclusive club access.

Golf Life Navigators and Club Benchmarking conducted a joint study in 2021 aimed at giving further insights into how clubs can navigate and maximize the opportunities presented by the surge in demand for memberships. The study was conducted with 400 private clubs and real estate buyers actively seeking new club or golf home opportunities.

In that study, 44 percent of all clubs surveyed reported having waitlists, a percentage that remained static through August, according to Jason Becker, co-founder and CEO of Golf Life Navigators. A particularly notable revelation from the study is the correlation between initiation fees and the prevalence of waitlists. Clubs with higher initiation fees reported a higher likelihood of having waitlists, with 71 percent of high-end clubs charging $90,000 or more for membership experiencing excess demand.

7 Tips to Manage a Waitlist

1. Stay Informed with Data

Regularly analyze your data to understand club trends and member dynamics. Use historical and new data to make informed decisions and plan for the future.

2. Address Unprecedented Member Interest

Acknowledge and embrace the high demand for club memberships. Let people know they are on a waitlist and communicate clearly with them.

3. Explore New Options

Consider options like partial initiation fees or refundable deposits to ease the financial burden on prospective members.

4. Diversify Membership Offerings

Provide access to club amenities, such as practice facilities and social events, for waitlisted members. Understand that golf may not be the sole motivator for joining; consider other factors like social interactions, landscaping, and weather.

5. Survey Prospective Members

Use this time to gather more data (see No. 1). Conduct surveys to gather insights from potential members on waitlist preferences. Ask about willingness to make upfront payments and their expectations during the waiting period.

6. Manage Member Expectations

Communicate clearly with members about potential wait times. Set realistic expectations regarding the waiting period and fees.

7. Plan for the Future

Develop long-term strategies to manage demand beyond the current period. Stay proactive and build pipelines to ensure a steady influx of potential members.

The study’s findings indicate a significant shift in the landscape, with the number of clubs reporting waitlist status having increased by almost 20 percent since May 2020. Even before the pandemic, upscale clubs with six-figure initiation fees were hovering around the 40 percent mark, making the current statistic of nearly half of all clubs nationwide having waitlists truly remarkable.

Keeping Waitlisted Members Engaged

To ensure that individuals on the waitlist remain engaged and connected to the club, Laconia Country Club has implemented several strategies. Waitlisted individuals are granted the opportunity to play during shoulder seasons, providing a taste of the club experience. Additionally, they are required to become social members, fostering a sense of community and connection even before full membership is granted.

“Each club needs to find how they can engage those on the waitlist in club use without giving them full access,” said Edward Graff, CCM, General Manager at TPC Potomac, Potomac, MD. “We provide the first 20 on the waitlist 10 rounds to use the course (no guests) and provide dining privileges. This allows them to experience the club and engage the membership and staff.”

Average Waitlist Timeline and Incentives

With an average waitlist timeline of three to four years, patience is key for prospective members. Laconia Country Club offers incentives to keep the waitlist engaged, such as early and late-season golf privileges and participation as substitutes in weekly leagues, Wheeler said. However, the club has opted not to offer discounts, emphasizing the exclusivity and value of full membership.

“More clubs have started or reinstituted waitlists because resignations at clubs have decreased and demand to join a club has increased,” Graff noted. “We are on a waitlist for the first time in our club’s history for two reasons: The way our existing members are using the club is greater than they did in the past. The size of the club membership was good at normal use levels, but as use increased, we had to reduce size by using a waitlist.”

For those eyeing a coveted spot on the golf course or paddleball court, the wait may be longer than anticipated. Chris Davis, director at Club Benchmarking, revealed a demographic shift that plays a significant role in this scenario. The influx of aging millennials, born around 1990, suggests a sustained interest in private club memberships through 2032. Given that the average age of a median first-time country club joiner tends to be around 42, clubs are likely to experience increasing interest well into the next decade.

Lessons Learned from the COVID-19 Era

Wheeler also highlighted some lessons the club learned during the peak of the pandemic. Facing an overwhelming waitlist of almost 300 individuals, the club took decisive action. By increasing the non-refundable deposit from $150 to $1,000, Laconia Country Club not only reduced the list by half but also ensured a more committed and genuine interest from those remaining.

In addition to golf, an unexpected player entered the arena of recreational sports during COVID—paddleball. Paddleball, a sport combining elements of tennis and racquetball, witnessed a surge in popularity during the pandemic. As players seek diverse outdoor activities, paddleball courts at private clubs are becoming coveted spaces.

Statistics show that paddleball continues to be on the rise, providing an interesting contrast to the golf boom. Private clubs, attuned to the evolving interests of their members, are beginning to invest more in paddleball facilities. Clubs overall report an increase in paddleball interest among their members.

As private clubs manage burgeoning waitlists, they are strategically incorporating paddleball and other recreational options into their offerings, catering to varying interests within their communities.

Predictions for 2024

Looking ahead to 2024, Wheeler remains optimistic about the continued growth of interest in golf and private club memberships. Laconia Country Club currently boasts 145 people on its waitlist, and Wheeler expects this number to remain steady or potentially increase by the end of 2024. The club anticipates an ongoing demand for exclusive access to their golfing amenities.

Graff concurs, saying that “higher initiation fee clubs continue to be in high demand, and I believe they will continue to be in demand in 2024. Many clubs have bylaws that set their membership size, which pushes them to continue their waitlist.” However, the thing that could change is a reduction in the amount of time someone is on the waitlist.

In conclusion, the surge in club membership waitlists reflects a broader trend in the popularity and resurgence of outdoor activities such as golf and racquet sports. As individuals seek additional outdoor recreational activities, clubs like Laconia Country Club are navigating this increased demand while maintaining the quality and exclusivity that define their offerings.