1. Increase Stadium Rent
A club owner's stadium rental income depends on the price, occupancy, and number of stadiums. When demand (the number of people wanting to book a court) is high and supply (the number of available courts) is low, raising court rental prices is an easy lever to pull. This also explains why there is a difference in court rental prices between areas where Padel is popular and areas where it is less famous.
2. Build More Padel Courts
It seems clear that building more
Padel tennis systems would have the potential to increase revenue, but it would also increase costs. As long as you make a profit on each additional pitch, there's a business reason to do it. However, the more courts there are, the harder it is to fill them all the time. It's still a balancing act between revenue and occupancy. If you have fewer pitches available than pitch rental demand, you'll miss out on additional revenue, but you'll have higher occupancy rates and a better chance of paying your bills.
On the other hand, if you have more courts than you need, you can maximize revenue, but occupancy will be lower, and recurring costs and maintenance will eat into your overall profits. Of course, there is a limit to how many pitches you can build, depending on the size of your facility.
3. Increase Occupancy Rate
Occupancy is defined as the percentage of actual courtroom rental hours compared to the maximum courtroom rental hours for a given period. As discussed, increasing occupancy allows you to increase revenue while covering costs. While there are several avenues you can take to increase occupancy, the following are good options to consider:
- Business events during quiet hours, including court rentals
- Host social events during quiet times
- Invite schools and sports clubs to play during quiet hours
- Off-Peak Rates: Offers lower court rentals during quieter hours
- Differentiate rentals and memberships across courts to optimize occupancy.
4. Sales of Food and Beverages
Playing padel requires more people than tennis (singles) or squash, which also means more people generally come to the club. Since padel ball is a social game, they also have a higher chance of grabbing a drink or snack after the game. This will increase the profitability of the courts. Of course, if you design your facility with the social aspect in mind.
5. Experience Through Arrangements and Bundling
While some people just want to rent a course and play, others just want the experience. Think of all the things people need and want before, during, and after playing Padel. For example, incorporating catering into the schedule of a business or social event can directly increase the amount people spend. In addition to stadium rentals, providing clinics and training is another way to increase revenue.
6. Use Energy-Saving Lighting
While nearly all new stadiums use LED lighting, there are cost-reduction opportunities for older facilities that don't use these energy-efficient lights. These lights provide maximum illumination immediately compared to older lights which may take some time to light up properly.
The standard for padel courts is 150W/200W LED lights, while typical halogen spotlights are 400W. Just switching to these low-wattage LED lights can save 50-60% on energy consumption.