The following—to whet your interest—are the 10 key findings from the report:
Responding clubs reported a median revenue growth of 4.3% between 2017 and 2018, though the figure varied by club type. Facilities that were part of a chain reported greater revenue growth (+7.1%) than independent ones (+3%).
Overall, the respondents indicated a median retention rate of 65.8%. Independent clubs managed 73.2%, while clubs that were part of a chain posted a 62.3% rate.
3. Revenue Per Member
The median annual revenue per member was $753.80 in 2018. The figure for the large-club segment (60,000-plus square feet) was $1,134.80, while, for the smallest clubs (under 20,000 square feet), it was $523.50.
4. Membership Growth
The month of January produced the highest percentage (10.3%) of all new accounts acquired during 2018. December, at 9.1%, wasn’t too far behind.
5. Membership Costs
Median sales and marketing costs per member were $123.59 in 2018—a 20.4% increase over 2017, when clubs spent $102.61.
6. Labor Costs
Clubs, overall, spent 41.9% of total revenue on payroll in 2018. Multipurpose clubs spent 44.5%, and fitness-only facilities spent 34.1%.
7. Capital Expenditures
Clubs, overall, reported reinvesting a median of 5.6% of total revenue ($284,000) in their business in 2018. A median of 1.3% of total revenue ($66,795) was spent on fitness equipment.
8. Nondues Revenue
Of the seven profit centers analyzed, personal training was No. 1 with respect to sales volume, producing 8.3% of total revenue in 2018.
Small-group training (SGT) was the most profitable department among the seven profit centers analyzed, producing a margin of 43.7%.
10. Facility Costs
Approximately 8.5% of total revenue was allocated to building expenses and land rental in 2018. Real estate and property taxes consumed a median of 1.8% of total revenue.
I’d like to extend my special thanks to the 115 club companies, representing a total of 12,289 facilities, that responded to IHRSA’s latest IDS; each received a complimentary copy of the report. Visit the IHRSA research page to learn how you can participate in future IHRSA research surveys.
Finally: best wishes for a happy, healthy, and prosperous New Year!