The International Health, Racquet & Sportsclub Association is the fitness industry's only global trade association representing over 10,000 for profit health and fitness facilities and over 600 supplier companies in 75 countries.

 

 



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Thursday
Oct092014

Profiles of Success Shows How You Stack Up

Being in the red or black is a good way to gauge how your company is faring financially. But sometimes that does not give you a full and clear picture.

Another way to see where you stand is comparisons to your peers. Those numbers will show you where clubs stand in certain areas, and see where you are in relation to them.

In the health and fitness industry one of the best ways to do just that is IHRSA Profiles of Success. Culled from data from the 33rd annual Industry Data Survey, Profiles of Success provides benchmarks and operational and financial data from leading clubs. The report provides a detailed analysis of the annual performance of health and fitness clubs, including results in key metrics such as revenue and membership growth, payroll, member retention, non-dues revenue, and EBITDA.

This report is designed to allow clubs to compare their operations with their peers to determine strengths, weaknesses, and improvement opportunities. The data has been aggregated in four categories: all clubs; club type (multipurpose vs. fitness-only); club management (multi-club/chain vs. independent); and club size.

“By actively participating in the IHRSA Profiles of Success, it guides me in better understanding the industry as a whole,” said Lisa Gorsline, president and general manger of Corpus Christi Athletic Club in Corpus Christi, Texas. “The survey provides me with the helpful detailed information about the clubs benchmarks and other aspects of club performances. The data and information helps me run my club more successfully.”

This year’s IDS results show how IHRSA clubs have managed growth. Responding clubs reported improvements of 5% and 4% in revenue and membership, respectively. As this report will show, club performance results varied by segment.

Additional key findings:

  • Fitness-only clubs posted greater net membership growth (+6.2%) than multipurpose clubs (+0.8%).
  • Smaller clubs generated less revenue per individual member ($630.80) in comparison with larger clubs ($876.10).
  • Total payroll claims a median 41.7% of total revenue for all responding clubs.
  • Clubs reinvest nearly 2% of total revenue into fitness equipment.

"Survey results indicate that leading clubs are continuing to record growth and improvements in revenue, membership, and operational metrics," said Jay Ablondi, IHRSA's executive vice president of global products.

The profit center section that includes revenue streams from areas such as personal and small group training, racquet sports, spas, pro shop/retail, food & beverage, children's/youth programs, and aquatics/pool,

"Although all clubs offered a variety of ancillary services for additional fees, over 90 percent of the responding clubs offer group exercise at no additional cost beyond membership dues,” said Melissa Rodriguez, IHRSA senior research manager. “Recent research findings as well as anecdotal data from club operators support the important role group exercise plays in retaining members.”

The Industry Data Survey is housed on the IHRSA Research Portal at ihrsaresearch.com. An e-mail with a link to the form was sent to IHRSA members in April 2014. A total of 186 firms representing 6,819 clubs completed the form. Nearly 59% of the respondents were multipurpose clubs and the remaining were fitness-only clubs. More than half (55.2%) of the respondents reported being part of a multi-club group or chain while the remaining reported as independent, single club operators.

Profiles of Success may be purchased in full or in sections at ihrsa.org/profiles. The entire PDF can be purchased for $499.95 (or only $249.95 for IHRSA members). The three separate parts are available for $159.95 (or $89.95 for IHRSA members) each.

For more information or questions, contact IHRSA Research at research@ihrsa.org, or call + 1-617-951-0055.

 

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