Tee-time deal criticised by tour operators

The Courier, 5 March 2009

A number of golf tour operators are up in arms over the “stranglehold” given by St Andrews Links Trust to an operator that now has control over commercial trade tee times.

The trust has told several businesses their “protected” status is being removed from 2010, and that all tee times formerly allocated to them are being merged with those of the Old Course Experience.

The deal struck with Keith Prowse more than 10 years ago has been a bone of contention for golf tourism operators and local St Andrews businesses, and now there are claims of unfair competition and overpricing.

All golf tourism operators will now have to apply to Keith Prowse and the Old Course Experience for tee-times for clients, and will pay a huge premium over their existing prices.

The Courier has also learned the trust rejected a deal that would have given golf tourism businesses independence from Keith Prowse, with a profit of around £240,000 to the trust.

One operator said there could be a major effect on attempts to attract golfing visitors to the area as part of holiday packages.

“When the Keith Prowse deal for awarding tee times was first set up by the trust, it was aimed at the corporate, incentive and hospitality market.

“Now, however, Keith Prowse is acting just like any other golf tour operator, but has been given all the power over trade tee times, and is effectively controlling the size of its opposition.

” He continued, “In our previous arrangement we were allocated tee times at a cost of just under £900 for a four ball.

“In 2010 these times will have to be purchased from Keith Prowse, and if their 2009 costs remain unchanged for 2010 then we will have to pay over £1400.

“We do not know how much of the extra money is going to St Andrews but it is believed that only £15 of their present £355 charged per golfer actually goes to the links over and above the actual green fee.

“We have always passed our tee costs on to clients without adding any profit, but there will now be a huge effect on the way we do business.

“It is accepted that the protected price status given to just a few of us had to come to an end, but there is no way that the Keith Prowse deal should give such power to one operator who has the power to grant or deny our requests”

He said a number of operators suggested they should be able to bid for their own block of tee times, and had met with management.

The operators had put forward a proposal stating how many times they wanted - around 600 - and how much of a premium they would be prepared to pay for these times.

“We came with figures which would have given the Trust free profit of £100 for every customer - we were told, though, that the deal had been put to trustees, and they had rejected it.

“There seems to be no reason why the trust has to hand control of these bookings to one of our competitors.

“The days of the big corporate deals may well be numbered, and the trust would do well to consider smaller businesses like ours,” he said.

A spokesman for St Andrews Links Trust said the claims are a serious misrepresentation of the facts.

“The arrangement with the Compass Group has been extremely beneficial, enabling investment in the courses and facilities while at the same time keeping links ticket prices and visitor green fees at a comparatively low level—by any objective measurement the arrangement has been a success.

“The change to the system for the next year will affect only 10% of trade tee times, and will mean all tour operators will be able to purchase tee times in the same way and on an equal basis - something many of them have welcomed.

“The St Andrews-based Old Course Experience has successfully administered the pool of trade times for the last 13 years.”