Book It: The Power of Doing Business Directly

1. Book It: The Power of Doing Business Directly Facilitator: Mike Tinkey, Deputy CEO, NGCOA John F. Davis III, Chief Executive Officer, Room Key Brad McDonald Sr. Vice President Strategic Business Initiatives, ICE Ken Guerra, Executive Vice President of Sales and Marketing, Sequoia Golf Holdings

2. NGCOA Policy Statement on 3rd Party Tee Time Resellers “The golf course should promote both individually and/or in groups, as many sales as possible directly through their own website, pro shop, call centers, or other outlets” www.ngcoa.org under advocacy

3. If the golf course, using its own independent judgment decides that it is in their businessinterest to engage the services of a Third Party Reseller, the Golf Courses should design plans and systems that position these Resellers as supporting strategies only, intended to drive incremental business and fill in times of soft demand. www.ngcoa.org under advocacy

4. Strategically working together and with allied associations to grow the game, enhance the brand of golf, and make it more stable. Today there are untapped distribution channels/customers waiting to connect Insure it is under your (best practices) terms

5. The Good Old Days Consumer or Member Internet Cloud Golf Course Tee sheet

6. Today Internet Cloud your site, 3rd party sites, switch sites Web Searching Telephone Third Party Travel Agent

9. Future of Travel Distribution “Travel distribution will have to evolve from efficiently processing transactions to carrying out meaningful conversations with customers that are rich in content, address their service issues and concerns, and finally, efficiently process the customers transactions. The goal will be to carry out ongoing conversations with targeted customers that produce profitable bookings.” - "Customer-Centric Systems for the Travel and Tourism Industry, " report, Accenture/World Travel and Tourism Council (WTTC), May 2002 Reported in eMarketer, October 2003

10. $3,000,000 for owners or $0 for owners and $57,000,000 for a reseller?

12. Maybe if we ignore him he will go away

13. Hotel Industry Internet Experience John Davis February 1, 2013

14. Online Hotel Bookings as a % of Total Hotel Bookings Source: Cowan and Company

15. Intermediary Distribution CostsEstimated 2010 and 2015 Scenarios Source: HSMAI Foundation

16. Critical Hotel Industry Decisions • June 1995 - Travel Web Introduced • Hotels refused to capitalize the company because “Brand.com’s” would be stronger than third parties. • June 2002-Travel Web Re-introduced • Third parties selling brand rooms for less than brands • January 2010 - Room Key Introduced • Drive bookings directly to brand.com sites

18. Book It: The Power of Doing Business DirectlyBridging Currency, Customers, and Business Models

19. Who is ICE? • Started in 1997 as a cruise centric company; innovative pricing and membership/package techniques drove growth • In early 2000’s expanded into resorts and leisure travel; entering into the private label servicing business • Explosive growth driven from unique private label servicing relationships with several large companies such as AMEX, USAA, Marriott Vacation Club, Wyndham , Maritz Loyalty • Expanding from Cruise, to Leisure travel into Leisure Lifestyles; including Golf, Merchandise, Wine, Spa, Activities and Attractions

20. ICE Mission To be a leading global market maker in the leisure industry by providing a unique integration of travel and worldwide leisure experiences through corporate alliance partnerships and direct to consumer marketing; exploiting proprietary delivery platforms, unique packaging and loyalty rewards/redemption.

22. Bridging Currency, Customers, and Business Models • Golf Owner Implications • Tremendous synergy exists between the leisure travel consumer and the golf industry; destination and at-home markets. • The innovative business model unlocks the value of membership and currency in a private label manner; providing the connection between points banks & member groups to the golf assets. • Airline currency to a Golf tee time • Credit card member with pre-funded gift card to Golf tee time • Large corporate incentive program currency to Golf tee time • Hotel program offering local tee times with currency during a stay • Mega entertainment companies offering alternative use with loyalty bucks • Expansion of the golf audience without discounting methodology; rewards and loyalty vs. discounting • Branded offerings behind a membership/login vs. publically available channels • Platform for partnerships; marketing channels controlled by the asset provider

23. Bridging Currency, Customers, and Business Models • How Do Owners Participate? • Consider alternative channels as incremental; not the holy grail • The larger the branded client, the longer a partnership opportunity takes. • Large customer groups have unique attributes; search for the ones most beneficial to your needs • Pick new partners who have a business model in-line with the future of the industry • Best business practices • Customer / brand focused vs. provider focused (Service orientation) • Rate integrity with flexibility; yield management methodology • Low or no entry fees; partnerships grow revenue vs. revenue grows partnerships • Pick your partners; the opportunities are there, but they are outside the box!!

24. WE BELIEVE Aggregated tee time sites operated by 3rd parties do not increase overall golf rounds. They shift distribution and extract profit. 3rd parties controlling the price of trade tee times is extremely destructive. Trade tee time prices are often set far below a course’s price floor The highly discounted rates erode consumer perception of what golf is worth

25. WE BELIEVE The problem is going to get worse as consumer demand web /mobile services increase. In the last three years, 3rd party distribution has increased from 10% to 30% + at many courses. Increased dependency on 3rd party sites is going to leave operators extremely vulnerable. Operators must act quickly to protect their business and prevent further erosion. Private Clubs are also impacted by these negative trends.

26. GGCOA INITATIVE - PLAY18 ATLANTA Founded by the GA Golf Course Owners Assoc Technology provided by Quick18 Solutions Key Objectives Help operators shift traffic to their own website and mobile app. Provide consumers with an aggregated tee time booking service where courses control all pricing. Accomplish the above in the most efficient manner possible to maximize course profits.

27. PLAY 18 ATLANTA BUSINESS MODEL Arm operators with a killer course branded website booking engine and mobile app. Course.com Provide consumers with an aggregated tee time website and mobile app. This is Play18.com. Eliminate booking fees on both channels to maximize traffic. Support marketing of aggregated channel (Play18) via a commission revenue model. 15% to 30% of two off peak tee times per day

28. DESIRED RESULT Courses drive traffic to their own site (no booking fees) reducing their dependency on 3rd party sites. Courses support an aggregated site where they control all pricing. Commissions paid by courses decrease dramatically. 100% today via 3rd party sites. Play 18 model is just 15-30%. Much more efficient.

29. PLAY 18 PROGRESS 50 Courses Participating in Atlanta Many courses have shifted substantial traffic to their own website. Best Practices include: No booking fees Best price guarantee, dynamic demand based pricing Discounts for advanced bookings Staff training and incentives Rewards program for booking online Pro-actively convert users of 3rd party sites Leverage Social Media

30. Play18 - Open Architecture Model The Play18 brand, technology and business model are available for any region to utilize. Launching simply requires a critical mass of participating courses and a method to fund start-up costs ($50k to $100k) More markets coming soon - Owners in a major market are preparing to launch. When other regions follow, all participants will benefit as the brand becomes nationally recognized.

31. Use the NGCOA Tee Time Distribution Best Practices to guide your individual and group management and marketing plans

32. Six Things To Do When You Get Home 1. Develop a distribution plan before you do anything 2. Don’t cheapen your product through TRADE 3. Re-write your agreement with any tee time distribution partner to insure you don’t have the problems outlined earlier-FOLLOW the NGCOA best practices 4. Spend 30 min every day on the internet following your comp set, see what they are doing and follow their links 5. Be sure your technologies talks to one another-USE a TEE SHEET provider that Open Travel Alliance compliant 6. Try something new and different

33. Ten Elements To Building a • Group Management/Marketing Organization • Recognize the opportunity • Identify leaders with passion and purpose • Create a structure that lasts beyond the founders • Build partnerships • Diversified funding • Know your customer . . . Your products • Commitment to building experiences and relationships • Create a unique identity and brand • Integrated marketing communications/sales • Technology, Benchmarks, Constant Improvement

34. mCall on the NGCOA for assistance k.Questions ?