Key points covered in this article:

  • Clubs saw a 34% increase in total income per member from FY 2021 to FY 2023, driven largely by growth in food and beverage sales and membership dues, though smaller clubs reported higher per-member income than larger ones.

  • Annual dues rose by an average of 25% post-pandemic, with smaller clubs charging higher dues and facing more turnover—up to 18%—compared to larger, more stable clubs.

  • Clubs are adapting to changing demographics and preferences through technology adoption, flexible membership types, and family-friendly amenities, aiming to boost engagement and retention amid increasing competition and economic pressures.

It’s said that springtime is the season of renewal. For clubs, springtime is more than nature’s reset; as the days get longer and the weather warmer, club owners and operators anxiously await fully booked tee times, dining rooms filled with activity, and diverse programming that’s fully booked. While Spring is the season to welcome members back to the course (or invite new ones to see what it’s all about!), the spring season is also an ideal time to prepare for the busiest months during Summer.

And because members’ experiences and expectations shape the future of our clubs, this article is dedicated to the numbers and trends behind membership revenue, growth, and engagement. Unless otherwise noted, all data referenced below is from an in-depth, independent financial benchmarking study containing nationwide club-provided data from fiscal year (FY) 2023, representing the most current (as of this printing) industry-wide information available.

Income Per Member

Total income per member increased by an average of 34% between FY 2021 and 2023, averaging $15,696 in the most recent report. Food and beverage sales and operating membership dues grew the most, respectively.

There are a variety of activities that contribute to an organization’s income per member beyond dues; food and beverage, golf, and other sports are the common categories. In FY 2023, the average food and beverage income per member increased by almost 75% to $4,428, or about 27.5% of total income per member, compared to 18-22% per member just two years prior. Even though offering robust food and beverage menus is a potentially huge contribution to club income, don’t lose sight of the members: any food and beverage amenity offering should be designed to meet the needs and standards that members expect and want.

How is your club capitalizing on the momentum of food and beverage sales to increase member value and club income?

However, the average income per member decreases as club size increases, with smaller clubs having the highest average income per member at $19,309, while larger organizations have a lower average of $15,696. This trend may reflect differences in membership structures, services offered, and pricing strategies across different club sizes.

Annual Dues

Annual dues are the biggest source of income for clubs. It makes sense, then, that as operating, labor, and capital costs are rising, clubs would look to make upward adjustments to their membership rates.

As a percentage of income, annual dues comprise anywhere between 53-59% of total income; the smaller the club, the more it may rely on dues for income. This benchmark is lower than FY 2021, indicating that clubs are diversifying their revenue mix and relying less on annual dues as a primary source of income, if only slightly.

In all regions, and across all club sizes, annual dues have increased substantially in the post-pandemic years by an average of about 25%. Yearly dues, which reflect the full member dues rate and includes capital dues, have been at an average of $11,718 – up from $9,961 just two years prior. Smaller clubs with less than 500 members tend to have the highest dues and experienced the biggest jump in rates. The largest clubs, on the other hand, have average membership dues about 18% less than their large counterparts.

Member Growth and Turnover

For most clubs, membership numbers have been holding steady or are up slightly, with an average increase of 0.4% across the board over the past few years. Smaller clubs have been more likely to experience member turnover and membership fluctuations than their larger counterparts. Membership at larger clubs tends to be more stable, with lower turnover and higher retention rates.

Some member attrition is expected and depends on club size and type. The average annual turnover rate is between 4-5%, and smaller clubs can expect a higher average than that – up to about 18%. Higher turnover has a predictably unstable effect on club financial performance and may be an area for your club to focus on this coming year.

What is your club’s member engagement strategy?  

While club size does seem to have an impact on member dynamics, clubs of all sizes have an opportunity this summer to focus on member engagement and strategies to increase revenue per member. One option to consider is how competitive member dues and guest pricing are. While dues and guest fees play substantial roles in offsetting high costs of maintenance and labor, clubs can potentially lower fees if member spending is higher in other areas, especially high-margin areas like food and beverage or merchandise sales, for clubs that offer this amenity on-site.

Another consideration if your club is among those struggling with year-over-year retention is expanding membership options. Some clubs have had success in offering different types of membership, from full family memberships to junior, corporate, social, seasonal, and other categories.

Enhancing Member Experience

Shifting demographics are changing club experiences. Interest in golf in the traditional sense of a full 18-hole course is declining; however, there are significant opportunities to reverse this trend if clubs appeal to different groups. For example, more than 800,000 women took up golf between 2020 and 2022, according to the National Golf Foundation. There are now an estimated 6.4 million female golfers in the U.S.

Additionally, junior golf participation has surged 40% since 2019, reflecting a younger, more diverse audience. Younger generations tend to have more family-centric approaches to recreation and don’t necessarily view a day at the club as an activity reserved for just the parents. Offering shorter and/or family-friendly rounds could be one way to attract this growing demographic.

On the tech front, clubs are adopting AI-powered concierge services, mobile booking systems, and digital engagement strategies that streamline reservations and enhance convenience. Many are also using data analytics to track member preferences, tailoring dining options, events, and recreational activities to better match member interests.

Automated kiosks, GPS-enabled golf carts, and virtual course simulations are also elevating the member experience. AI-driven scheduling tools are simplifying tee times, fitness reservations, and dining bookings. Clubs continue to leverage targeted social media campaigns and virtual facility tours to reach prospective members in an increasingly digital world.

Still, economic uncertainty remains a challenge. As competition grows, clubs that invest in technology, personalization, and lifestyle trends will be better positioned to attract and retain members.

Data has shown that even while club financial performance is positive – and overall revenue per member is up – smaller organizations tend to face more challenges with member retention and expense management. Whether your club is a tight-knit community where all the members know each other, your organization’s amenities are well-suited to accommodate several hundred or more members, or you’re somewhere in between, each type of club has strengths it can lean into while preparing for the busy season ahead.

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This article was featured in the May/June edition of BoardRoom magazine.