Centre Court Centre Court is the only indoor tennis club in Fond du Lac, Wisconsin. For many years the local YMCA/YWCA

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Centre Court
Centre Court is the only indoor tennis club in Fond du Lac,Wisconsin. For many years the local YMCA/YWCA provided anindoor tennis alternative to Centre Court, but two years ago the“Y” remodeled and eliminated its tennis space. Thus, tennisplayers in the city and surrounding area can either play outdoorswhen the weather permits or at Centre Court year-round, includingat times when the outdoor temperature is warm, but conditions arerainy, windy, or otherwise not good for tennis. Besides rentingcourt space to play tennis, people can enroll for lessons at theclub and can purchase a variety of tennis supplies and clothing atthe pro shop inside Centre Court.
Brian Davis, the owner of the business, has tried to price courttime optimally, leading him to try various methods. Onemethod that was used in the past involved price differencesaccording to peak vs. off-peak demands for court space, asdescribed in the following table
Category
Price
Prime Time (Mon-Fri, 5 pm to close and all day Saturday andSunday)
$20 / hour
Non-prime Time (Mon-Fri, 8 am to 5 pm)
$16 / hour
Junior *
$14 / hour
Non-member, for all three categories above
50% higher
* Same day reservations only, no double discounts
The manager of Centre Court, Wendy Petak, noted that it could bedifficult to administer this pricing schedule. For example, how doyou charge for a group of four, consisting of two juniors, oneadult member, and one adult nonmember, who play from 4:30-6:00 pmon a weekday?
Currently, court time is priced at a flat rate of $24/hour formembers and $36/hour for non-members, no matter what the day of theweek or the time of day. Ms. Petak appreciates the simplicityof this approach and Mr. Davis thinks that it brings in morerevenue than the former schedule, but he isn’t sure. He has beenasked by several customers for a price break when playing atnon-peak times. They either remember the former pricingschedule or they notice that the courts usually aren’t very busy atthe times that they play and so they claim that they shouldn’t haveto pay the full $24/hour.
Mr. Davis has hired us to analyze indoor tennis court pricingand to make any recommendations that we can convincingly argue willhelp the business to reach its profit potential.