Friday
Mar042011

For Select Health Clubs, 2010 Performance Results Exceed 2009 Indicators

BOSTON, MA - March 4, 2011 - The International Health, Racquet and Sportsclub Association (IHRSA) announced the results of its November and December Monthly Trends Surveys. Survey results show that participating companies, representing more than 300 club locations, significantly improved performance in 2010 relative to 2009. The IHRSA Monthly Performance Index reached 105.7 and 105.1 in November and December, respectively, indicating an expansionary business environment.*   
 
"With the economy posting positive growth in the fourth quarter, these leading clubs saw improved business conditions," said Jay Ablondi, executive vice president of global products at IHRSA. "Responding clubs reported improved performance in revenue and membership traffic, finishing 2010 on a strong note."

For the year-to-date (YTD) as of December 31, 2010, nearly two-thirds (66.3 percent) of responding clubs posted increased total revenue. Membership dues/fees were up for nearly the same percentage (65.7 percent) of respondents. Non-dues/fees revenue improved for over half of the respondents (56.4 percent). Additionally, over three-fourths of the respondents reported that EBITDA** and EBITDAR*** were about the same or up for the year-to-date vs. the prior year.
 
Membership traffic steadily increased among participating clubs in both November and December. The number of membership accounts added in November 2010 vs. November 2009 increased for over half of the respondents (53.9 percent) with slightly over a quarter of participants (27 percent) reporting an increase in the number of membership accounts dropped. In December, two-thirds of clubs (66.7 percent) indicated an increase in number of membership accounts added in 2010 vs. 2009. Only six percent of clubs reported an increase in the number of accounts dropped. In November and December, 90 percent of clubs experienced a comparable to increased number of total visits.

Overall, participating club operators remain optimistic, with a few skeptical of improving business conditions. "Overall, [we] have seen a strong year, which surprised us," commented one participant. "Most of our clubs are ahead of budget." Another commented on the challenges of increased competition: "It's a tough market for us. Unemployment has risen in our town, new clubs are being built and the pie is getting split more ways."

Looking ahead, a vast majority (80.8 percent) of December respondents anticipate increased revenues in the next three months. Nearly three-quarters (73.1 percent) expect to make capital expenditures for equipment over the same time period.

IHRSA's February survey is currently open, and it takes only five minutes to complete. All interested club operators should participate by visiting the IHRSA Research Portal at ihrsa.org/research, where you can access more results and analysis on the IHRSA Monthly Trends Study. Subscribers to the IHRSA Research Portal can download current and archived quarterly and monthly results for readily accessible, up-to-date club operations research data.

Year-to-Date November 30, 2010 vs. Year-to-Date November 30, 2009
 
Down
About the Same
Up
Total Revenue
27%
7.7%
65.4%
Membership Dues Revenue
30.7%
15.4%
53.9%
Non-Dues Revenue
23.1%
3.9%
73%
Total Survey Responses, n= 25 (representing 313 clubs)
 
Month-end November 2010 vs. November 2009
 
Down
About the Same
Up
Total Revenue
19.3%
15.4%
65.3%
Membership Dues Revenue
30.7%
11.5%
57.7%
Non-Dues Revenue
26.9%
3.9%
69.2%
Total Survey Responses, n= 25 (representing 313 clubs)
 
Year-to-Date December 31, 2010 vs. Year-to-Date December 31, 2009
 
Down
About the Same
Up
Total Revenue
24.3%
9.1%
66.3%
Membership Dues Revenue
25.1%
9.4%
65.7%
Non-Dues Revenue
21.9%
21.9%
56.4%
Total Survey Responses, n=33 (representing 318 clubs)
 
Month-end December 2010 vs. December 2009
 
Down
About the Same
Up
Total Revenue
18.2%
21.2%
60.6%
Membership Dues Revenue
42.3%
15.6%
42.3%
Non-Dues Revenue
38.6%
15.9%
45.5%
Total Survey Responses, n=33 (representing 318 clubs)
 
*The IHRSA Monthly Performance Index is calculated based on four current monthly business conditions indicators (revenue, number of membership accounts, number of employees, and capital expenditures on equipment) as well as three expectation indicators for the next three months (revenue, number of employees, and capital expenditures on equipment). An Index of over 100 denotes an expansionary environment, representing favorable business conditions for industry growth based on these indicators.

**EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)

***EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization and Rent)     
About IHRSA  
The International Health, Racquet & Sportsclub Association (IHRSA) is the trade association representing health and fitness facilities, gyms, spas, racquet and sports clubs, and suppliers worldwide. IHRSA and its members are dedicated to making the world healthier through regular exercise and fitness promotion. IHRSA and the health club industry will convene in San Francisco, California from March 16-19 for IHRSA's 30th Anniversary International Convention & Trade Show. Find an IHRSA club at healthclubs.com.
 

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