Putting You In That New Car

Upgrades that have turned mere “carts” into “cars” can provide real benefits not only for those who play golf, but those who manage the game and its courses.

by Kyle Darbyson (editor@clubandresortbusiness.com)
June 2006
 

Summing It Up The quest to enhance the golfing experience has spurred the development of a “luxury vehicle” golf cart market. High energy bills and other rising costs of operation have put renewed focus on smarter cart maintenance practices. Carts that are easier to access and operate allow older or less-mobile players to still enjoy the game. One club has saved more than $5,000 annually through a system that charges carts at lower, off-peak electric rates. Users of gas-powered carts can qualify for road fuel-tax rebates.New Carts on the Block A little competition drives a lot of innovation, especially in the golf cart industry. Manufacturers are battling for market share by developing increasingly sophisticated and luxurious models. “We’re always working to improve the quality, efficiency and reliability of our products,” says Kevin Holleran, Vice President of Sales & Marketing for EZ-GO. To this end, his company has begun production on vehicles that utilize a “Precision Drive System,” which Holleran says “allows golf course management to tailor the performance of their electric golf car fleet to match the terrain of the golf course—be it flat, hilly or whatever else.” Yamaha, meanwhile, has made a major push into the growing market for personal transportation vehicles. The company, which has been producing golf cars since 1975, recently unveiled the G-MAX PTV. According to William Scoggins, Yamaha’s Marketing and Product Planning Manager, this product makes Yamaha a pioneer in the field. “We’ve established ourselves as industry leaders,” Scoggins says, “by being the first and only company to offer an off-fairway vehicle that complies with ANSI Z135 specifications [industry standards that set minimum specs for top speed, visibility and more].” New entrants into the market are offering extraordinarily unique alternatives to conventional carts. Even Segway, famed for its gyroscopic personal transport device, has thrown its hat into the ring. Building on the original design of its scooter, the Segway GT (Golf Transporter) also offers extended battery life, traction tires, and a side-mounting bag carrier. “The agility and speed of the Segway GT allow the player to get to his or her ball quickly, speeding up the game and allowing more time to set up the shot,” explains Klee Kleeber, VP of Marketing. “It’s also great fun to ride." As for the future, Scoggins from Yamaha sees cart manufacturers capitalizing on emerging technologies as they seek to further enhance the experience for golfers. “You really have to look five, even ten years down the road when you are designing new products,“ he says. So look for things like fuel cells, alternative fuels, and composite materials to shape the next generation of golf carts. But according to EZ GO’s Holleran, one thing won’t change: “Golf cars will continue to offer a convenient, comfortable and, most importantly, fun way for golfers to enjoy their rounds.”—KD

The days of exhaust-belching, eardrum-assaulting golf carts are definitely gone. What were once just cheap ways to get from Hole A to Hole B have become miniaturized luxury vehicles that some manufacturers now refer to exclusively as “golf cars.” Fierce competition has forced manufacturers to add more and more features—from GPS technology to seat warmers—just to satisfy the golfing public’s ravenous demand for better on-course experiences.

As they’ve grown in sophistication, carts have become more important to clubs’ and resorts’ bottom lines.While they play a vital role in a significant revenue stream, the large-scale capital output needed to first assemble a fleet—and then the high costs of maintaining it—still add elements of risk to the investment. And now, spiraling energy costs have upped the ante even higher.

It all means that properties have to manage this aspect of their business more closely than ever—not only to keep costs under control, but also to provide the best possible golfing amenities for their clientele. Everything But Run on Water Most people recognize the Coeur d’Alene Resort for its meticulously maintained golf course, highlighted by its famous floating 14th green (C&RB, July 2005). But after the latest upgrades to its fleet of golf carts, guests to this Idaho destination resort might soon remember the trip between holes just as fondly as playing them.

“Our goal has always been to go above and beyond guests’ expectations,” explains Director of Operations Brendan Lenihan. “Offering little extras on our carts is just part of that.” The resort upgrades its fleet every three years, adding new features and accessories that continually raise the bar on luxury and convenience.

“The carts are custom-built for us by a company in Palm Springs,” says Lenihan. “One of our owners, Wayne Hagadon, takes considerable interest in this side of the business, and travels to [the manufacturer’s] offices to work with their designers.” That partnership has seen Coeur d’Alene’s carts grow to boast heated seats, fronttrunk storage with built-in coolers, adjustable temperature controls, and more.

“Mr. Hagadon assembles feedback from all stakeholders and relays the vision to the designers,” Lenihan adds. “They compile it all into a prototype to test feasibility, and give a cost estimate.” It’s a process with virtually no holds barred, at least initially. “We had looked at installing adjustable bucket seats,” he notes, “but the design compromises needed to accommodate them gave us almost no ground clearance.”

Instead, the latest round of enhancements added, among other things, tinted windshields and 13-inch chrome wheels. “I think the new carts look amazing,” Lenihan says. “And judging from the reactions we’ve been getting from our guests, they seem to agree.”

When it comes to maintaining this jazzed-up fleet, Coeur d’Alene’s feverish commitment to customer service gives Lenihan another advantage. The club employs 50 caddies that accompany guests as part of every greens fee, and each caddy is responsible for cleaning and detailing his or her own select group of carts. This leads to friendly rivalries that, according to Lenihan, yield extraordinary results. “There’s a real sense of pride that they get from keeping these things looking spotless, and they’re always trying to outdo each other,” he said. “The feedback they get from guests is universally positive.”

Some of that feedback also includes inquiries into whether the vehicles can be purchased from the club. “Over the course of a season, we’ll get as many as 300 requests from people who have used the carts,”Lenihan says.And the club does in fact sell the carts after their three-year rotation. Lenihan sold all 82 of the older models over the past winter. “I called guests that had expressed interest,” he explains. The club’s exceptional maintenance program allowed it to recoup a better-than average percentage on the carts while providing buyers with vehicles in superb condition. “There were a lot of happy customers,” Lenihan notes.

What’s next for Coeur d’ Alene? Lenihan says they will keep trying to take cart upgrades to the next level. “We’re looking at misting tents for our next model—and I haven’t quite given up on those bucket seats, either,” he laughs.

New User Profiles

It isn’t just a taste for luxury that’s shaping the future of golf carts. Shifting demographics are demanding that manufacturers change the way they look at cart design.

“The average golfer is getting older, and many are getting to the point where getting in and out of conventional carts just isn’t possible anymore,” explains Bill Bryant, a marketing consultant to Solorider, which specializes in producing carts for the mobility impaired.

“More and more clubs are discovering the benefits of making their courses accessible to everyone, regardless of their mobility,” says Bryant. “It’s not just about incremental increases in revenue, it’s also about providing service to clients throughout their lives.”

The jazzed-up, custom-made carts at Coeur d’Alene Resort now generate almost as much buzz as the course’s famous floating green (background, above).

Essentially hybrids of golf carts and motorized scooters, the Solorider devices are specially designed to afford riders unprecedented access to the entire course, including the greens. The swiveling seat even lets golfers who are unable to stand without support continue taking their hacks.While some superintendents may scoff at the notion of a heavy cart motoring around on their greens, Bryant explains that the engineering leaves nothing for turf managers to worry about. “The suspension and weight distribution are so precise that the car transmits less pressure per square inch than a man or woman would put on the same turf when walking,” he claims.

The bulk of sales so far have been to individual consumers, but Bryant has also noticed resort courses purchasing units, to better cater to all possible golfers. “They’re buying these simply because they want to make sure they’re doing everything they can to make the game more accessible to people who want to play,” he reports. Some private clubs, he adds, are even buying units to express appreciation to long-time members who might now need some extra assistance getting around.

The jazzed-up, custom-made carts at Coeur d’Alene Resort now generate almost as much buzz as the course’s famous floating green (background, above).

The Miser’s Touch

All of the innovation in the world, of course, isn’t going to help a club’s profitability if the cost of using carts is too high. Soaring energy prices have raised the alarm of clubs across the country—and out in California, Bruce Williams, whose duties as Superintendent at the Los Angeles Country Club (LACC) include overseeing the club’s fleet of golf carts, decided to do something about it.

“The senior managers were challenged to come up with ways to save on energy costs,” Williams explains. Obvious solutions like low-wattage light bulbs and more efficient cooling systems were implemented, but Williams still wanted to find a way to temper the rising costs associated with keeping the club’s 110 electric carts fully charged.

He found it with a Watt/Miser energy management system offered by Club Car, which supplies all of the LACC’s carts. To begin the process, an energy audit was conducted to look at the club’s fleet and how carts were stored. The analysis then factored in numbers like average annual rounds and current energy demands.

A program was then set up to take advantage of the savings offered by local energy suppliers during off-peak hours. The Watt/Miser system controls the flow of electricity and recharges the carts between 9:00 pm and 5:00 am. “Unless we have a power outage that lasts for the entire charging period, the system works flawlessly,” says Williams.

Scott Austin, an energy management specialist for Club Car, says the Watt/Miser system was first developed over 10 years ago, as customers started to become more and more concerned about controlling their operating costs. “We talked to a number of them and realized that energy costs were among their biggest expenses,” he says.

The key to the system’s success, Austin adds, is how it maximizes savings without compromising service. “This technology gives clubs complete control over their energy use,” he says, noting that the system can save clubs up to 60% on their energy bills.

At LACC,Williams says he has saved upwards of $5000 a year since implementing the system. “It will pay for itself in two and a half years,” he says. There is a fairly significant expense for equipment, he concedes, but he looks at that as an upfront investment. “The smiling people in the accounting office would probably agree with me, too,” he adds.

For the 35% of clubs that still use gas-powered carts, Austin has another trick up his sleeve: He advises them to take advantage of road fuel tax rebates from their gasoline providers. “Because fleet golf cars do not operate over public roads, they are not subject to road fuel taxes, and courses are eligible for rebates,” he notes.

With energy costs unlikely to get any lower, manufacturers will only step up their drive to make vehicles that need less of it. Solar energy looks like the most likely candidate for most of the attention in the future—and fully-contained, self-sufficient carts aren’t too far from reality.

In fact, as innovative thinking continues about better ways to make and use golf carts, we may be on the verge of science fiction-like sophistication for these once most humble means of transportation. With GPS, wireless Internet and a host of other luxurious extras coming on stream at one end, and managers finding better ways to keep costs down at the other, golf carts may be at the center of increasingly wonderful golfing experiences—even for golfers who thought they were finished with the game.

Coeur d’Alene’s Lenihan, for one, continues to look forward to the next series of upgrades. “It’s not all about sizzle,” he says. “It’s about making all aspects of the golfer’s experience truly spectacular.” C&RB