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Entries in Industry Data Survey (12)

Wednesday
Apr122017

3 Compelling Reasons to Partake in IHRSA’s Industry Data Survey

Did you know that health club membership grew by 2.4% in 2015 for leading operators? Or that those same clubs saw an average of 4.1% revenue growth and generated $816.30 per member?

You would have known that and so much more if you’d read IHRSA’s 2016 Profiles of Success, published last fall, which provides a wealth of industry analysis based on data compiled from more than 4,865 facilities. 

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IHRSA has produced this report annually since 1983, on the basis of the results of our annual Industry Data Survey (IDS). The deadline to participate in this year’s IDS survey is April 28. 

If you haven’t taken it yet, here are three reasons why you should. 

Continue reading "3 Compelling Reasons to Partake in IHRSA’s Industry Data Survey."

Click to read more ...

Monday
Nov072016

IHRSA Report: Health Clubs Posted 4.1% Revenue Growth from 2014 to 2015

Health club operators that allocated nearly 22% of total revenue to club reinvestment—including fitness equipment, office, and facility and grounds—outperformed the overall sample in terms of net membership growth, retention, and revenue growth, according to IHRSA’s latest Industry Data Survey, and the accompanying publication, IHRSA Profiles of Success.

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"IHRSA's annual industry data survey results show how leading club operators stand out, posting strong performance in financial and membership indicators,” says Jay Ablondi, IHRSA's executive vice president of global products.

Data from 90 Companies and 4,800 Locations

Of the 90 participating companies, clubs posted revenue growth of 4.1 percent from 2014 to 2015. Member retention and net membership growth were recorded at 71.4% and 2.4%, respectively.

As a whole, participating clubs indicated reinvesting 5.6% of total revenue. Top performers, who typically reinvested 21.5% of total revenue, posted revenue growth of 4.9%, net membership growth, 6.2%, and member retention rate of 77.8%.

Performance Analysis for 8 Profit Centers

Profiles of Success also provides performance analysis for eight health club profit centers. Key profit center findings: 

  • All clubs reported generating a median of 8.4% of total revenue from personal training and 1.1% of total revenue from small group training.
  • Including personal and small group training, the top performing profit centers among all responding clubs are racquet, spa, and pro-shop/retail. 
  • Multipurpose clubs generated 4.8% of total revenue from racquet.
  • Spa services accounted for 2.8% of total revenue at fitness-only clubs.
  • Fitness-only clubs generated a greater percentage of total revenue from pro-shop/retail than multipurpose clubs (2.6% vs. 1.5%). 

Learn more about IHRSA Profiles of Success.

Monday
May162016

IHRSA Report: Health Clubs Saw 5.3% Revenue Growth from 2013 to 2014

This feature is brought to you by the IHRSA Store spring sale. Now through June 30, save 25% on reports, webinars, and all other resources in the IHRSA Store by using promo code 2016SALE at checkout. 

Overall, health clubs posted revenue growth of 5.3% from 2013 to 2014, according to our 2015 Profiles of Success report. 

Multipurpose and independent clubs reported median retention rates of 69% and 79%, respectively. Fitness-only clubs reported a median net membership growth of 4.2%, while clubs part of a chain achieved a median net membership growth of 9.4%—the highest among all segments observed. 

"IHRSA's annual industry data survey results indicate that leading club operators continue to play to their strengths as respondents recorded improvements in key financial and membership metrics," said Jay Ablondi, IHRSA's executive vice president of global products. “This year’s results show multipurpose and independent club reported strong retention results in 2014, while fitness-only and chain facilities posted high net membership growth. All segments increased revenue on a year-over-year basis.” 

The report provides a detailed analysis of the annual performance of leading health and fitness clubs, including key performance metrics such as revenue and membership growth, payroll, member retention, non-dues revenue, and EBITDA. Profit center analysis as well as income statement and balance sheet data are also provided. 

Additional key findings include:  

  • Fitness-only clubs reported the greatest revenue growth across all segments by club type (+8.9%). 
  • Multipurpose clubs generated the greatest revenue per individual member ($810.80). 
  • Smaller clubs generated less revenue per individual member ($637.50) in comparison with larger clubs ($1,298.60), but achieved greater gross revenue growth (8.2% vs. 3.5%).
  • Total payroll claims a median 39% of total revenue for all responding clubs. 
  • Clubs reinvested roughly 3% of total revenue into fitness equipment.
Monday
Apr252016

3 Reasons to Participate in IHRSA’s Industry Data Survey

Did you know that the average revenue for a health club grew by 5.3% between 2013 and 2014, but that, during the same period, average revenue-per-member fell from $753.60 to $702.70? 

You would have known that and so much more if you’d read IHRSA’s 2015 Profiles of Success, published last fall, which synthesizes, and makes sense of, data compiled from more than 5,759 facilities. 

IHRSA has produced this report annually since 1983, on the basis of the results of our annual Industry Data Survey (IDS). The deadline to participate in this year’s IDS survey is May 26. 

If you haven’t taken it yet, here are three reasons why you should. 

1.  Contribute to Valuable Industry Benchmarking 

It’s hard to summarize the wealth of information that Profiles provides. 

There are comprehensive findings on critical club benchmarks and other aspects of club performance, including membership growth, club utilization, facility reinvestment, etc. The report also provides an overview of the U.S. industry; a revealing snapshot of member demographics; and a profit-center-section analysis of the revenues and profit margins of racquet sports, spa, pro shop/retail, food and beverage, and children’s/youth programs. 

As if that weren’t enough, the report also serves up Key Performance Indicators (KPI) for clubs of different sizes and in different categories, including single facility, multi-club, fitness only, and multipurpose. 

2. Receive a Free Copy of this Year’s Profiles of Success 

IHRSA member clubs that participate in the IDS receive a complimentary copy of Profiles, a $249.95 value. Club owners are always looking for cost-effective resources to help them increase profitability—and, well, it just doesn’t get any more cost-effective than free

Not only is Profiles the most valuable industry benchmarking tool available anywhere; it’s also the only one that requires an investment of just a short amount of time to complete the survey. 

3. Receive a Free Copy of the 2015 Edition of Profiles 

Need a little further incentive? Happy to oblige! 

Complete the 2016 survey by the May 26 deadline, and we’ll also send you a PDF of the 2015 edition—for free

Participate in This Year’s IDS Survey 

If you’re interested in participating in this year’s IDS survey, visit the IHRSA Research Portal by May 26. If you have any questions, contact research@ihrsa.org

As always, an independent third party administers the IDS, so that the identity and information provided by individual participants is protected and held strictly confidential. 

Friday
Feb052016

Health Clubs Report Membership Growth in New IHRSA Survey

Health clubs are growing membership and improving retention, according to IHRSA’s newly released Industry Data Survey, and the accompanying publication, IHRSA Profiles of Success.

The comprehensive, 71-page report provides a detailed analysis of the annual performance of leading IHRSA clubs, providing benchmarks for factors such as retention, nondues revenue, and EBITDA (earnings before interest, taxes, depreciation, and amortization).

The current issue of Profiles is based upon membership and financial data for 2013 and 2014 provided voluntarily by 124 club companies, representing 5,759 facilities. It provides performance indicators for several club types, including fitness-only, multipurpose, independent, and multi-club facilities. There are also breakouts by club size, and by the monthly dues they charge.

Overall, the results are pretty remarkable. 

“IHRSA’s annual Industry Data Survey results indicate that leading club operators continue to play to their strengths, as the respondents recorded improvements in key financial and membership metrics,” said Jay Ablondi, IHRSA’s executive vice president of global products. “This year’s results show that multipurpose and independent clubs reported strong retention results in 2014, while fitness-only and chain facilities posted high net membership growth. Revenue increased for all segments on a year-over-year basis.” 

Here’s a small sampling of the wealth of data contained in Profiles of Success:

  • Membership: The survey respondents reported a net membership growth of 3.7% for 2014, after an annual increase of roughly 3% per year from 2010 to 2013. While revenues per club member fell from $753.60 in 2013 to $702.70 in 2014, overall revenue grew 5.3% for 2014.
  • EBITDA: This metric rose from 15.9% of total revenue for 2013 to 16.6% of total revenue for 2014. Pretax earnings as a percentage of revenue jumped from 6.8% in 2013 to 8.1% for 2014.
  • Retention: Multipurpose and independent clubs reported median retention rates of 69% and 79%, respectively.
  • Net membership growth: Fitness-only clubs reported a median net membership growth of 4.2%, while clubs that are part of a chain achieved a median net membership growth of 9.4%, the highest among all segments.
  • Revenue growth: Fitness-only clubs reported the greatest revenue growth (+8.9%). Multipurpose clubs generated the greatest revenue per individual member ($810.80). Smaller clubs generated less revenue per individual member ($637.50) in comparison with larger clubs ($1,298.60), but achieved greater gross revenue growth (8.2% vs. 3.5%).
  • Enrollment fees and dues: Clubs in the survey reported charging a median of $49 for enrollment fees and $69 for monthly dues. A club member paid a median of $828 in annual dues last year. This annual dues figure represents an increase over the $780 reported for 2013, and is well above the $720 reported for 2012.

Read the full "The State of the Industry" article in the February issue of CBI.

Tuesday
Apr142015

IHRSA Members Act Now To Receive Your Free IHRSA Profiles of Success

As the operator of a successful club company, your participation is valuable as the Industry Data Survey results are aggregated and analyzed to establish club financial and operating benchmarks.

Results will be reported in IHRSA Profiles of Success (2015 edition), an important publication used by club operators, analysts, and investors worldwide as the standards to measure club performance. 

To complete this survey you will need:

  • 2013 & 2014 Financial Statements
  • 2013 & 2014 Membership Activity Information

(If you participated last year, the form will be pre-populated with the 2013 information you supplied last year.)

As a thank you for participating, IHRSA members will receive a free PDF of IHRSA Profiles of Success (2015 edition)!

Log on to the IHRSA Research Portal to participate. Deadline: April 24

Friday
Nov072014

Investing Revenues Back into Your Club

It is time for the third key stat every gym owner and manager should be aware of. IHRSA blogged about the first two - culled from information from Profiles of Success - earlier this week

Key Stat #3: The top-performing health clubs invest a median of 17.1% of total revenue in club facilities and equipment. 

Overall, clubs that participated in the Industry Data Survey reported investing a median of 5.4% of total revenues back into the club. Investing in capital expenditures not only maintains the club, it can also contribute to an increase in revenues and the bottom line. 

Profiles of Success highlights that profitable clubs reinvest more into facilities and equipment that less profitable facilities. Clubs that reinvested a median of 17.1% of total revenue into fitness equipment, grounds & facility, and office equipment were among the top 25% performers. These clubs reported the following results:

  • Revenue growth of 6.5%, compared with 1.5% for the bottom 25% (who reinvested a median of 1.7% of total revenue).
  • Rate of member retention of 78.5% compared with retention rate of 68.1% for the bottom 25%.
  • Net membership growth of 4.6%, in comparison with 2% for the bottom 25%. 

PREVIOUS BLOG ENTRIES

Key Stat #1 - Lifetime value of a member

Key Stat #2 - Sales and marketing cost per new membership

It’s clear that clubs who invest back into their facilities and equipment perform better than those who do not. New and innovative equipment and programs can play a key role in keeping members engaged and looking forward to what’s next at their club!

For more on IHRSA Profiles of Success, visit ihrsa.org/profiles. Contact research@ihrsa.org.

Wednesday
Nov052014

Second Performance Stat Operators Should Track

IHRSA is able to provide many different metrics via Profiles of Success. Using the Industry Data Survey (IDS), key club performance indicators like revenue, membership, traffic, and payroll, as well as income statement data are compiled, analyzed and tracked.

Earlier this week we blogged about the first of three key stats that operators should be aware of for a successful business. Here, as promised, is the second:

Key Stat #2: Leading club operators spend a median of $118.65 in sales and marketing costs per new membership account.

The IDS also tracks sales and marketing costs per new membership account. This metric is often used to estimate how much it would cost to replace a member. However, some clubs consider the cost per new membership account in calculating the lifetime value of a member. 

Based on participating clubs, the sales and marketing costs per new membership account is $118.65. (This number excludes expenses related to sales and marketing staff and contractor.) That being said, sales and marketing costs vary by club type. For example, fitness-only clubs reported spending a median of $84.59 in sales and marketing per new membership account, while multipurpose clubs indicated spending $138.36.

For more on IHRSA Profiles of Success, visit ihrsa.org/profiles, or e-mail research@ihrsa.org.

Monday
Nov032014

Club Performance Stats All Leading Operators Should Track

For more than 30 years, IHRSA has conducted a comprehensive Industry Data Survey (IDS), a study that tracks key club performance indicators. Metrics related to revenue, membership traffic, and payroll as well as income statement data are compiled, analyzed, and reported in IHRSA’s Profiles of Success.

Thanks to the participation of 186 IHRSA clubs, representing more than 6,800 facilities, this year’s Profiles of Success sheds light on key statistics club operators track. Here is the first of three:

Key Stat #1: Leading club operators generate a median of $793.40 in annual revenue per member. 

What is the lifetime value of a member? Tracking revenue generated per member can help determine lifetime value. 

In the IHRSA Member Retention Report (Volume 2, Issue 2), lifetime value is defined as the average length of time a member stays and therefore how much they pay in membership fees. Any recurring non-dues fees can also be considered when calculating the lifetime value of a member, which is included in the median annual revenue per member reported by leading club companies in Profiles of Success. 

Based on clubs who participated in the IDS, the median annual revenue generated per member was $793.40 in 2013.

So, for example, if we take the median annual revenue generated per member from Profiles and say the typical length of time a member says is two years, then the lifetime value of the member would be 2 x $793.40 or $1,586.80.

Keep in mind the lifetime value of a member will vary depending on the club type and model, membership pricing, non-dues fees, and membership tenure. The key takeaway is the importance of tracking the lifetime value of a member at your club on an ongoing basis in order to observe and address any changes.

Thursday
May012014

Moore: participation in Industry Data Survey benefits everyone

A study is only as good as the participants. The more people that take part, and the more accurate their information is, the better the metrics that come out of it.

That is why it is imperative that as many health club operators take part in IHRSA's annual Industry Data Survey. The results are used, among other places, in Profiles of Success, the comprehensive IHRSA publication.

IDS collects information like revenue growth, member retention, club reinvestment, earning before taxes, depreciation and amortization (EBITDA) and much more. The metrics culled from the survey can assist club owners on business decisions down the road.

The deadline to participate has been extended until May 23.

Read IHRSA President and CEO Joe Moore's editorial in CBI for more on IDS.