Private clubsrefer to membership-based social establishments offering recreational amenities, dining services or collective community spaces. They carry exclusivity connotations given their selective membership policies and private ownership structures. The global private club industry generates over $100 billion in annual revenue with the U.S. domestic market comprising the largest share (Private Club Marketing, 2024).

History of Private Clubs

Private clubs emerged as early havens for affluent individuals to congregate, socialize, and access exclusive leisure pursuits like golf, tennis, and swimming outside the home. Many cite American homegrown political clubs like the prestigious New York Society Library, formed in 1754, as forerunners to elite social clubs. Major metropolitan clubs provided comfortable spaces to dine, discuss business affairs, and host events given cramped urban living quarters in the late 19th century.

Proliferation continued into the early 20th century’s leisure and sporting boom alongside suburban expansion. Regional clubs focused on golf, yachting, and outdoor recreation. Given the plentiful opportunities for growth, the industry gained traction. This cemented the industry as a pillar of U.S. leisure pursuits and lifestyle in general. While historically dominated by upper class men, the 1970s saw diversification around age, gender and ethnicity widen access and choice.

Types of Private Clubs

A myriad of club varieties exist. They span major categories like country clubs, city-based clubs, and member-only nightlife venues. Of course, there are also more minor categories. For example, there are also clubs for furries, Dungeons and Dragons, and nearly any other pursuit. This section of the chapter will focus on the primary career pathways within the clubs industry. Yet, it should be noted that there are numerous clubs that exist.

Furry Fandom, which is a club of furries that meets annually

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Country Clubs

Country clubs offer recreational facilities, typically with a multi-sport anchor like golf or tennis alongside upscale dining and event spaces. More than 3,600 private country clubs operate in the U.S. alone. Of these clubs, 72% of global country clubs feature golf while 59% have swimming pools (York, 2002).

Normal initiation fees range from $5,000 at modest clubs to over $75,000 for premier properties, especially in affluent regions like the Northeast (Anjum, 2023; LinksDAO, n.d.). There is no cap on initiation fees in general though. Clubs have been charging more in recent years, particularly in the luxury sector of the club industry. The trend around country club initiation fees has been marked by a significant increase in recent years, driven by the growing demand for exclusive and luxurious amenities among affluent individuals. According to a report by the National Club Association (NCA), the average initiation fee for private clubs in the U.S. rose to $38,500 in 2021, a 7.8% increase from the previous year (NCA, 2022).

This surge in initiation fees is particularly evident in high-end clubs located in popular metropolitan areas and resort destinations. For instance, the Seminole Golf Club in Juno Beach, Florida, has an initiation fee of $350,000 for new members, while the Bel-Air Bay Club in Los Angeles charges a staggering $450,000 (Golf.com, 2023; Bel-Air Bay Club, n.d.). These exorbitant fees reflect the exclusivity and prestige associated with membership at such elite clubs, which offer top-notch amenities, including championship golf courses, state-of-the-art fitness facilities, and upscale dining options.

However, it’s important to note that not all country clubs have followed this trend of skyrocketing initiation fees. Many mid-tier and family-oriented clubs have maintained relatively modest fees in an effort to attract a broader demographic (Steele, 2024). Additionally, some clubs have implemented alternative membership models, such as non-equity memberships or pay-as-you-go options, to cater to those seeking more flexibility and affordability.

Initiation fees play a crucial role in the financial and operational aspects of country clubs and their membership structures. These fees, typically charged upon a new member’s entry, represent a significant source of revenue that helps maintain the high standards of facilities and services expected at these exclusive establishments. The initiation fees contribute to the club’s capital, funding improvements, expansions, and upkeep of the golf courses, tennis courts, swimming pools, and other amenities. Furthermore, they serve as a financial barrier that upholds the exclusivity and prestige of the club, ensuring that membership remains a coveted and valued status. This exclusivity not only enhances the perceived value of the club but also fosters a sense of community and belonging among members. In essence, initiation fees are more than just an entry cost; they are a fundamental part of a country club’s economic model and a key factor in preserving the quality and exclusivity that members expect and cherish.

Annual dues often represent substantial further investment beyond initiation fees, averaging $11,000 across all club types per the National Club Association (as cited in Steele, 2024).

City Clubs

City clubs, distinct from their country counterparts, offer a unique blend of social, dining, and recreational facilities, tailored to an urban setting. As of recent data, a significant number of such clubs operate across the U.S., providing an exclusive urban retreat for professionals and socialites (Club Leaders Forum, 2024). Unlike country clubs, city clubs may not always feature expansive outdoor sports facilities but often include fitness centers, elegant dining areas, and spaces for business and social gatherings.

City clubs serve professional clientele in urban areas via shared workspaces, networking events, lodging and fine dining access. The Harvard Club of New York City, for instance, provides preferential access to rooms at The New York Palace hotel. University-affiliated clubs are common like The Penn Club of New York for UPenn alumni. Meal plans, tiered fitness amenities and tiered membership levels offering different privileges are common. Global cities like London, Hong Kong and Dubai harbor concentrations of prestigious clubs bearing multi-year waitlists.

Initiation fees for city clubs vary widely. Fees are influenced by the club’s location, prestige, and the range of amenities offered. Fees generally begin in the $2,000-$4,000 range in more modest establishments. Premier clubs in major metropolitan areas like New York or San Francisco normally command fees of $50,000 on the high end. Of course, there are also outliers in what is known as the ultra-exclusive or ultra-private markets. While many clubs do not post fee structures, it is well known that some clubs are up to $400,000 in these ultra- markets. Furthermore, some clubs are so exclusive that fame or industry recognition are the only way to join the establishment. Whatever the fee structure, fees remain pivotal to the clubs’ financial health, just as the fees are in country clubs.

In addition to initiation fees, city clubs also charge annual dues, just as country clubs do. According to the National Club Association, these dues average around $7,000 to $15,000 annually (as cited in Steele, 2024), though this can vary widely based on the club’s stature and location. These dues, along with the initiation fees, form the backbone of a city club’s economic structure, enabling them to offer a blend of luxury, convenience, and exclusivity in the heart of bustling urban centers.

Night Clubs

Bars, lounges and nightclubs fall within the private club sphere when instituting strict entrance policies based on status, connections, or demographics. VIP-sections and bottle service are mainstays. Globally renowned nightclubs include Berghain in Berlin, infamously denying over half of visitors entry. Bouncers seemingly subjectively deem turned away individuals as not suitably aligning with their underground, creative ethos. Another excellent example of a vibrant nightlife due to night clubs is the city of Las Vegas. There are thousands of nightlife establishments that operate in Las Vegas alone (Davis et al., 2023), from high roller casinos to nightclubs leveraging celebrity hosts and haute couture aesthetics to attract well-heeled patrons.

Nightclubs, central to the nightlife and entertainment industry, offer a dynamic and vibrant social experience, markedly different from the serene ambiance of country clubs. The U.S. boasts a thriving nightclub scene, with a vast array of establishments catering to diverse music tastes and social preferences. These clubs are known for their lively atmosphere, featuring state-of-the-art sound systems, DJ performances, dance floors, and often, high-end bar services.

Unlike country clubs, nightclubs typically do not charge initiation fees or annual dues. Their revenue model is primarily based on cover charges, drink sales, and VIP service offerings. Cover charges vary significantly depending on the location, the popularity of the club, and the events being hosted. In major urban centers or for high-profile events, these charges can range from a nominal fee to several hundred dollars.

The financial backbone of nightclubs lies in their ability to attract a steady flow of patrons and offer exclusive services. VIP tables and bottle service, for instance, cater to a more affluent clientele and can command premium prices, often running into thousands of dollars for a single night. This exclusivity not only drives revenue but also enhances the club’s prestige and appeal.

Nightclubs also invest heavily in ambiance and experience, constantly upgrading sound and lighting systems, interior décor, and thematic elements to stay relevant and attractive to their target audience. This constant reinvention is crucial in an industry where trends and preferences change rapidly.

While nightclubs do not have a membership model akin to country clubs, their success hinges on creating a unique, memorable experience that encourages repeat visits and word-of-mouth promotion. In essence, the nightclub industry, with its focus on entertainment, exclusivity, and trendsetting, forms a vital and dynamic part of urban culture and nightlife.

Operations at Clubs

Private clubs represent expansive, member-focused operations with areas mirroring full-scale resorts. Administration handles membership processing, communications, legal and finance matters. Food and beverage comprises the dining facets while recreation manages fitness facilities, equipment and programming like leagues and lessons. Grounds oversee outdoor amenities from golf course and tennis court maintenance to landscaping, aquatics and exterior facilities care. Additional teams handle marketing plus events planning for member life cycle moments like weddings alongside third-party bookings.

Club managers regard membership and guest services as top priorities for success. Important industry texts such as CMAA’s Compensation and Benefits Reports and Annual Reports refer to KPIs around service to be integral to the organization’s effectiveness (Club Management Association of America [CMAA], 2022a). This underscores the member-centric mentality essential across departments. Staff must understand member preferences to personalize interactions and services. Marketing and communications also remain vital, leveraging platforms like mobile apps to continually engage existing members on offerings while curating targeted digital ad campaigns to attract prospective members.

Working in the private club industry, particularly in country and city clubs, offers a unique career experience characterized by long-term personal interactions and a sense of community. This industry stands apart from other hospitality sectors due to the norm of enduring relationships that professionals develop. Unlike transient interactions typical in hotels or resorts, private club employees often serve the same members for years, even decades. They also serve their families. This continuity allows for a level of personal service and familiarity that is rare in other fields (CMAA, 2022a).

In country clubs, professionals have the opportunity to engage with members in a variety of settings, from golf courses and tennis courts to dining rooms and special events. The multi-faceted nature of these clubs means that career paths can be diverse. Professionals might start in guest services, move into events coordination, and eventually advance to club management. Each role offers the chance to build lasting relationships with members, witnessing and participating in the milestones of their lives—from family celebrations to retirement parties.

City clubs, while more focused on social and business networking, also offer a platform for long-term member engagement. Yet, the environment is different in some ways. For example, getting to know your guest’s families is less likely while getting to watch how they work with others is more often.

The unique aspect of working in private clubs is the generational continuity. Employees often witness children growing up within the club, attending family events, and participating in youth programs. These children may eventually become members themselves, continuing the tradition and maintaining the relationship with the club and its staff. This generational aspect adds a layer of depth and fulfillment to working in private clubs, as employees become a part of their members’ extended families.

Moreover, this industry allows for a blend of professionalism and personalization that is hard to find elsewhere. Employees often know their members and their entire families by name, understand their lifestyle preferences, and anticipate their needs. This level of personalized service creates a warm and welcoming atmosphere, making the club a home away from home for its members.

A career in the private club industry, be it in country or city clubs, is an opportunity to be part of a community that includes lifelong relationships with guests as a norm of the working environment. The satisfaction derived from seeing the direct impact of one’s work on members’ lives, coupled with the diverse career pathways available, makes working in private clubs a unique experience in hospitality and tourism.

Golf and Clubs

Golf, as an industry, has experienced a notable growth in recent years. This growth may be driven by various factors including changing demographics, technological advancements, and evolving consumer preferences. This resurgence is reflected in both the economic impact of the sport and the diverse career opportunities it presents, spanning public and private courses. Yet, it is the COVID-19 pandemic that may have most contributed to the growth of golf in recent years.

The early 2020s witnessed an enormous growth of interest in golf. This has been attributed to its perception as a safe, outdoor activity during the COVID-19 pandemic. According to the National Golf Foundation (n.d.), the number of rounds played in the U.S. saw a significant increase, with a 13.9% rise in 2020 compared to 2019, the largest year-over-year increase since 1997 when golf experienced the Tiger Woods effect. The “Tiger Woods effect” refers to the significant surge in popularity and participation in golf that occurred following Tiger Woods’ emergence and success in the sport during the late 1990s.This uptick was not just limited to play but also extended to equipment sales and memberships, signaling a robust revival for the industry. For instance, the sale of golf equipment in the U.S. surged to $2.81 billion in 2020, a remarkable 10% increase from the previous year (Tighe, 2024).

The differentiation between public and private golf courses is a key aspect of the industry. Public golf courses, which are open to the general public, constitute the majority of golf courses in the U.S. According to the National Golf Foundation (n.d.), approximately 75% of the 16,000 golf facilities in the U.S. are public courses. These courses are more accessible and typically cater to a broader audience, including casual and beginner golfers. The revenue model for public courses relies heavily on green fees, golf cart rentals, and range sales, along with income from pro shops and on-site food and beverage services.

Private golf courses, on the other hand, are exclusive to members and their guests. Private clubs offer a more exclusive experience, often with additional amenities like dining, event space, tennis courts, and swimming pools. The appeal of private courses lies in their exclusivity, personalized service, and community aspects.

The growth of the golf industry has also expanded career opportunities. Careers in golf go beyond the traditional roles of golf pros and caddie masters. Golf course management and maintenance is a significant career field, with roles such as golf course superintendents, who are responsible for maintaining the golf course grounds and ensuring optimal playing conditions. These roles require expertise in agronomy, environmental management, and the use of sophisticated maintenance equipment.

Additionally, the golf industry offers careers in hospitality and event management, especially in private clubs where hosting tournaments and events is common. Professionals in these roles manage logistics, coordinate with sponsors, and ensure a high-quality experience for participants and spectators. Sales and marketing careers are also vital in promoting golf courses and driving membership and visitor rounds. This includes digital marketing, which has become increasingly important as golf courses and clubs seek to attract younger demographics through online platforms.

The advent of golf technology companies has opened up new career paths in areas like equipment design, manufacturing, and sales. The rise of golf simulators and digital coaching tools has also created opportunities in software development and data analytics.

Golf tourism is another growing segment, with careers in travel planning and resort management. This sector capitalizes on the appeal of iconic golf destinations, offering packages that combine golf with lodging and other leisure activities.

The growth of the Private Club Industry

Private clubs as an industry have demonstrated marked growth in recent years, driven by rising participation in golf, tennis and fitness overall alongside increasing population densities constricting private space. Fifty-five percent of clubs witnessed membership expansion during COVID, with average club size also ticking upward (as cited in Barron, 2023). Seventy percent of clubs are actively pursuing development projects to expand amenities. Median annual club revenue reached $7.37 million in 2022, with median net membership growth of 3% signifying sustained momentum.

This upward trajectory is projected to continue. The CMAA’s Finance and Operations Report (2022b) identified a strong rebound for the industry post-COVID with $27.2 billion spent at country clubs in 2022, which constitutes a nearly 25% growth over 2021. Of course, COVID caused decline (Capstone Hospitality, 2022). IBIS World (2024) does not forecast this type of exponential post-COVID growth to continue, yet they do forecast a consistent 2.2% annualized growth in the coming decade, which includes 1.5% annual growth in the number of clubs. This growth remains concentrated across North America which represents 47% of the global club market (CMAA, 2022). India, China, Argentina and Australia also seem to show substantial development pipelines as populations grow though. This is in alignment with rises in consumer spending. There is also an idea at global conferences such as CMAA and NCA that now that golf has secured Olympic status, there will be a boost in international participation.

Attributions

1. Figure 10.6: FBL 2018 FURSUIT GROUP PHOTO by Mecanautes is released under CC BY-SA 4.0
2. Figure 10.7: Total U.S. Golf Participation by Ezra Leigh, for WA Open ProfTech, © SBCTC, CC BY 4.0
3. Figure 10.8: 1-2020 08 30 Cromarty Tennis Club 02 by Ken Heaton is released under CC BY-SA 4.0