Zimmer MedizinSysteme GmbH / icelab
Zimmer MedizinSysteme GmbH / icelab
Zimmer MedizinSysteme GmbH / icelab
Health Club Management

Health Club Management

Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
UNITING THE WORLD OF FITNESS
Get the latest news, jobs and features in your inbox
Health Club Management

Health Club Management

features

IHRSA Update: The numbers are in

Kristen Walsh takes a look inside IHRSA’s latest Profiles of Success report

By Kristen Walsh, IHRSA | Published in Health Club Management 2020 issue 2
Private sector health and fitness clubs have maintained strong performance over the past two years / PHOTO: SHUTTERSTOCK/GORODENKOFF
Private sector health and fitness clubs have maintained strong performance over the past two years / PHOTO: SHUTTERSTOCK/GORODENKOFF

IHRSA has released its annual Industry Data Survey (IDS) results and the accompanying publication, 2019 IHRSA Profiles of Success. The report provides a detailed analysis of the annual performance of US private sector health and fitness clubs in areas such as revenue, membership growth and retention, traffic, payroll, non-dues revenue and EBITDA.

“2019 Profiles of Success shows US clubs have maintained strong performance over the past two years,” says Jay Ablondi, IHRSA’s executive VP of global products. “Overall, clubs reported favourable indicators in revenue, membership, and operations. The report provides benchmarks for club operators to compare their performance against, along with analyses by club type and size.”

Profit centre analysis
Multipurpose clubs reported that 7.7 per cent of total revenues are coming from PT services, 5.7 per cent from racquet sports, 4.3 per cent from spa services, 3.9 per cent from F&B, and 1.9 per cent from children and youth programmes.

For fitness-only clubs, fitness offerings accounted for a large portion of non-dues revenues, with PT accounting for 15.5 per cent of total revenues.

Although fitness-only clubs and multipurpose clubs can operate similar department/profit centres, profit margins for the various departments vary depending on how the department is operated. For example, some multipurpose clubs operate these departments more as a volume business or as value-adds to their core membership. They may even operate some as loss leaders to differentiate their clubs as an experience, rather than simply a destination.

Change by month
As consumers set health and fitness resolutions in the new year, member accounts added versus those accounts dropped are significantly higher from January to March and in 2017-18, the difference in percentage added versus the percentage dropped in January was positive and the largest it has been in the last five years.

July and August are typically months in which the number of dropped accounts outpace the number of accounts added. Respondents also reported a higher percentage of dropped accounts in September and October, but November and December reported a higher positive percentage.

Retention and visits
Clubs in the sample reported slightly lower retention rates, but still managed to retain nearly seven out of 10 members in 2018.

This varied by club type and club size. Multipurpose clubs reported a stronger membership retention rate when compared to fitness-only clubs (73.9 per cent, versus 58.4 per cent) and independent clubs reported a significantly higher membership retention rate compared to clubs that are part of a multi-club group or chain (75.8 per cent, versus 62.3 per cent).

When analysed based on the size of the clubs, those with 60,000sq ft or more reported the highest member retention rate at 76.3 per cent.

In 2018, all clubs reported a median of 57 visits per member per year, up slightly from the 54 visits reported for 2017.

Multipurpose clubs and fitness-only clubs reported 55 and 61 visits per member, respectively. Clubs that are part of a multi-club group or chain reported 56 visits per member versus 57 visits per member at independent clubs.

Clubs with 35,000-59,999sq ft reported only 52 visits per member while clubs with over 60,000sq ft reported 59 visits per member.

Net membership growth
Net membership growth was mixed across the numerous reporting segments, but the overall trend was that of continued growth – albeit at a slower pace than 2017.

Overall, clubs in this sample reported membership gains of 2.7 per cent between 2017 and 2018. Fitness-only clubs experienced higher membership growth than the multipurpose clubs, growing at 2.2 per cent in 2018, against 1.7 per cent in 2017.

It’s important to bear in mind that some of this change is due to results from smaller-scale fitness-only clubs, where a small increase in number of members has a greater impact from a percentage point of view.

Smaller clubs with less than 20,000sq ft reported the highest percentage increase in the total number of members added in 2018, at 11.5 per cent.

While a constant stream of new members is the lifeblood of a health club, the number of new accounts is also an important metric. IHRSA defined membership accounts in this year’s survey to include both family and individual memberships.

The typical chain club added 810 accounts over 2018. The typical independent club, on the other hand, added 1,000 accounts. When comparing clubs by type, multipurpose clubs added more accounts than smaller, fitness-only clubs. The typical multipurpose club added 1,031 accounts last year, while the typical fitness-only clubs added 648 accounts.

In 2018, all types of clubs were about even in terms of account replacement. The member account replacement ratio for 2018 was nearly 1.07, meaning that for every 107 accounts sold, 100 accounts closed. This metric is worth monitoring, as this is a drop when compared to 2017.

Additionally, this is below the range logged in recent years of 1.10 to 1.20. For context, this ratio was 1.29 pre-2009.

Jay Ablondi
"Overall, clubs reported favourable indicators in revenue, membership, and operations" - Jay Ablondi, IHRSA
10 key findings
Get the report

The 2019 IHRSA Profiles of Success is available for purchase at ihrsa.org/profiles or via email to [email protected] US$249.95 for IHRSA members, US$499.95 for non-members.

Small group training was the most profitable area for clubs in 2018
Small group training was the most profitable area for clubs in 2018
http://www.leisureopportunities.com/images/imagesX/294322_569988.jpg
'The 2019 Profiles of Success report shows US clubs have maintained strong performance over the past two years' – says IHRSA's Jay Ablondi
Kristen Walsh, IHRSA,Kristen Walsh, IHRSA, annual Industry Data Survey, 2019 IHRSA Profiles of Success,
People
We’ve launched a virtual fitness club, on our website and social media. The idea is that patients can share their stories to inspire each other to be active, and we can signpost people towards local activity opportunites
People
Gyrotonic has continued to grow via word of mouth. I quickly had people from all sorts of backgrounds and all kinds of disabilities coming to me who the medical community couldn’t help. As I came across different people with different problems and limitations, I started to adapt the technique
People
HCM people

Amanda Daley

Professor of behavioural medicine, Loughborough University
PACE labelling would be a simple, user-friendly way of informing people, at a glance, of the amount of physical activity required for the food they are considering eating
Features
feature
HCM talks to Fraser Smith about founding his studio and why he picked miha bodytec as his supplier and EMS training for his USP
Features
feature
Technogym is helping Odyssey Health Club launch new gym floor formats that enhance the member experience
Features
HCM research
You could help members reduce feelings of sadness, conquer binge-eating and improve self-control, using learnings from the Journal of Consumer Psychology, reports Megan Whitby
Features
Design
Third Space sold its boutique brand, Another Space, and launched its sixth full-service club in the space of a few weeks, signalling its intention to consoldidate its position at the top end of the market
Features
Supplier showcase
Class Boutique Fitness has collaborated with Physical Company to create a boutique studio offering that’s as inclusive as it is effective
Features
Myzone
Steve Mellor, owner of AMP Athletic, has installed Myzone to drive his business. We find out how it’s enabling him to deliver great service to his members
Features
Research
New research from Mintel reveals private health and fitness clubs had a record breaking year in 2019. Mintel’s Lauren Ryan gives us the highlights
Features
Latest News
The number of people in the US with a health club membership has increased by ...
Latest News
DW Fitness First has extended its partnership with corporate fitness sales specialist Gympass, to increase ...
Latest News
A global touch study has been launched to “explore our attitudes towards the physical experience ...
Latest News
Food labelling that shows the amount of exercise needed to burn off the calories in ...
Latest News
The team at unusually named studio //3877 has created a boxing gym in Washington, D.C., ...
Latest News
Boutique fitness operator Barry's is entering the indoor cycling market with Barry's Ride – a ...
Latest News
Getting fit together could be the secret for a long happy relationship. A new study ...
Latest News
Not-for profit leisure operator Circadian Trust is partnering with NHS GP surgeries in Gloucestershire to ...
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Speedflex enters new partnership with Gateshead Council
HIIT specialist, Speedflex, is set to launch a new studio at Gateshead International Stadium in partnership with Gateshead Council.
Featured supplier news
Featured supplier: Training provider explains how a partnership with Fisikal transformed their business
Drummond Health & Fitness Education Academy has been providing quality health and fitness training and education for more than 35 years.
Video Gallery
How to use the MZ-Bodyscan
MyZone
The Best Product for the Best Clubs Read more
More videos:
Company profiles
Company profile: Fisikal Limited
Fisikal helps fitness professionals, operators and education organisations improve efficiencies and service through its online ...
Company profiles
Company profile: Jordan Fitness
Jordan Fitness have been at the forefront of premium gym design, with a strong reputation ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Direct debit solutions
Debit Finance Collections: Direct debit solutions
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Exercise equipment
Power Plate: Exercise equipment
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Locking solutions
Monster Padlocks: Locking solutions
Gym flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Gym flooring
Wearable technology solutions
MyZone: Wearable technology solutions
Professional services
Deloitte UK: Professional services
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Property & Tenders
Derby City Council
Property & Tenders
Diary dates
06-07 Mar 2020
Palazzo del Ghiaccio, Milan, Italy
Diary dates
23-25 Mar 2020
Hilton, Barcelona, Spain
Diary dates
25 Mar 2020
Executive Boardroom, Middlesex University, London, United Kingdom
Diary dates
25-26 Mar 2020
Eastwood Hall, Nottingham, United Kingdom
Diary dates
26-29 Mar 2020
The Winter Gardens Blackpool, Blackpool , United Kingdom
Diary dates
27-29 Mar 2020
TeatroGoya Multiespacio, Madrid, Spain
Diary dates
19-24 Apr 2020
tbc, Beijing, China
Diary dates
04 Jun 2020
Marriott Forest of Arden Hotel & Country Club, Birmingham, United Kingdom
Diary dates
13 Jun 2020
Worldwide, Various,
Diary dates
17-18 Jun 2020
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2020
Loews Coronado Bay Resort, Coronado, United States
Diary dates
17-23 Oct 2020
Pinggu, Beijing, China
Diary dates
30-31 Oct 2020
NEC, Birmingham, United Kingdom
Diary dates
27-28 Nov 2020
Athena, Leicester, United Kingdom
Diary dates

features

IHRSA Update: The numbers are in

Kristen Walsh takes a look inside IHRSA’s latest Profiles of Success report

By Kristen Walsh, IHRSA | Published in Health Club Management 2020 issue 2
Private sector health and fitness clubs have maintained strong performance over the past two years / PHOTO: SHUTTERSTOCK/GORODENKOFF
Private sector health and fitness clubs have maintained strong performance over the past two years / PHOTO: SHUTTERSTOCK/GORODENKOFF

IHRSA has released its annual Industry Data Survey (IDS) results and the accompanying publication, 2019 IHRSA Profiles of Success. The report provides a detailed analysis of the annual performance of US private sector health and fitness clubs in areas such as revenue, membership growth and retention, traffic, payroll, non-dues revenue and EBITDA.

“2019 Profiles of Success shows US clubs have maintained strong performance over the past two years,” says Jay Ablondi, IHRSA’s executive VP of global products. “Overall, clubs reported favourable indicators in revenue, membership, and operations. The report provides benchmarks for club operators to compare their performance against, along with analyses by club type and size.”

Profit centre analysis
Multipurpose clubs reported that 7.7 per cent of total revenues are coming from PT services, 5.7 per cent from racquet sports, 4.3 per cent from spa services, 3.9 per cent from F&B, and 1.9 per cent from children and youth programmes.

For fitness-only clubs, fitness offerings accounted for a large portion of non-dues revenues, with PT accounting for 15.5 per cent of total revenues.

Although fitness-only clubs and multipurpose clubs can operate similar department/profit centres, profit margins for the various departments vary depending on how the department is operated. For example, some multipurpose clubs operate these departments more as a volume business or as value-adds to their core membership. They may even operate some as loss leaders to differentiate their clubs as an experience, rather than simply a destination.

Change by month
As consumers set health and fitness resolutions in the new year, member accounts added versus those accounts dropped are significantly higher from January to March and in 2017-18, the difference in percentage added versus the percentage dropped in January was positive and the largest it has been in the last five years.

July and August are typically months in which the number of dropped accounts outpace the number of accounts added. Respondents also reported a higher percentage of dropped accounts in September and October, but November and December reported a higher positive percentage.

Retention and visits
Clubs in the sample reported slightly lower retention rates, but still managed to retain nearly seven out of 10 members in 2018.

This varied by club type and club size. Multipurpose clubs reported a stronger membership retention rate when compared to fitness-only clubs (73.9 per cent, versus 58.4 per cent) and independent clubs reported a significantly higher membership retention rate compared to clubs that are part of a multi-club group or chain (75.8 per cent, versus 62.3 per cent).

When analysed based on the size of the clubs, those with 60,000sq ft or more reported the highest member retention rate at 76.3 per cent.

In 2018, all clubs reported a median of 57 visits per member per year, up slightly from the 54 visits reported for 2017.

Multipurpose clubs and fitness-only clubs reported 55 and 61 visits per member, respectively. Clubs that are part of a multi-club group or chain reported 56 visits per member versus 57 visits per member at independent clubs.

Clubs with 35,000-59,999sq ft reported only 52 visits per member while clubs with over 60,000sq ft reported 59 visits per member.

Net membership growth
Net membership growth was mixed across the numerous reporting segments, but the overall trend was that of continued growth – albeit at a slower pace than 2017.

Overall, clubs in this sample reported membership gains of 2.7 per cent between 2017 and 2018. Fitness-only clubs experienced higher membership growth than the multipurpose clubs, growing at 2.2 per cent in 2018, against 1.7 per cent in 2017.

It’s important to bear in mind that some of this change is due to results from smaller-scale fitness-only clubs, where a small increase in number of members has a greater impact from a percentage point of view.

Smaller clubs with less than 20,000sq ft reported the highest percentage increase in the total number of members added in 2018, at 11.5 per cent.

While a constant stream of new members is the lifeblood of a health club, the number of new accounts is also an important metric. IHRSA defined membership accounts in this year’s survey to include both family and individual memberships.

The typical chain club added 810 accounts over 2018. The typical independent club, on the other hand, added 1,000 accounts. When comparing clubs by type, multipurpose clubs added more accounts than smaller, fitness-only clubs. The typical multipurpose club added 1,031 accounts last year, while the typical fitness-only clubs added 648 accounts.

In 2018, all types of clubs were about even in terms of account replacement. The member account replacement ratio for 2018 was nearly 1.07, meaning that for every 107 accounts sold, 100 accounts closed. This metric is worth monitoring, as this is a drop when compared to 2017.

Additionally, this is below the range logged in recent years of 1.10 to 1.20. For context, this ratio was 1.29 pre-2009.

Jay Ablondi
"Overall, clubs reported favourable indicators in revenue, membership, and operations" - Jay Ablondi, IHRSA
10 key findings
Get the report

The 2019 IHRSA Profiles of Success is available for purchase at ihrsa.org/profiles or via email to [email protected] US$249.95 for IHRSA members, US$499.95 for non-members.

Small group training was the most profitable area for clubs in 2018
Small group training was the most profitable area for clubs in 2018
http://www.leisureopportunities.com/images/imagesX/294322_569988.jpg
'The 2019 Profiles of Success report shows US clubs have maintained strong performance over the past two years' – says IHRSA's Jay Ablondi
Kristen Walsh, IHRSA,Kristen Walsh, IHRSA, annual Industry Data Survey, 2019 IHRSA Profiles of Success,
Latest News
The number of people in the US with a health club membership has increased by ...
Latest News
DW Fitness First has extended its partnership with corporate fitness sales specialist Gympass, to increase ...
Latest News
A global touch study has been launched to “explore our attitudes towards the physical experience ...
Latest News
Food labelling that shows the amount of exercise needed to burn off the calories in ...
Latest News
The team at unusually named studio //3877 has created a boxing gym in Washington, D.C., ...
Latest News
Boutique fitness operator Barry's is entering the indoor cycling market with Barry's Ride – a ...
Latest News
Getting fit together could be the secret for a long happy relationship. A new study ...
Latest News
Not-for profit leisure operator Circadian Trust is partnering with NHS GP surgeries in Gloucestershire to ...
Latest News
ukactive has launched two major new reports as part of its Business Intelligence service. The ...
Latest News
The annual Sweat event kicks off in London today (20 February), offering the UK's fitness ...
Latest News
Boutique boxing gym brand BXR London has revealed plans to open its second site at ...
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Speedflex enters new partnership with Gateshead Council
HIIT specialist, Speedflex, is set to launch a new studio at Gateshead International Stadium in partnership with Gateshead Council.
Featured supplier news
Featured supplier: Training provider explains how a partnership with Fisikal transformed their business
Drummond Health & Fitness Education Academy has been providing quality health and fitness training and education for more than 35 years.
Video Gallery
How to use the MZ-Bodyscan
MyZone
The Best Product for the Best Clubs Read more
More videos:
Company profiles
Company profile: Fisikal Limited
Fisikal helps fitness professionals, operators and education organisations improve efficiencies and service through its online ...
Company profiles
Company profile: Jordan Fitness
Jordan Fitness have been at the forefront of premium gym design, with a strong reputation ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Direct debit solutions
Debit Finance Collections: Direct debit solutions
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Exercise equipment
Power Plate: Exercise equipment
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Locking solutions
Monster Padlocks: Locking solutions
Gym flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Gym flooring
Wearable technology solutions
MyZone: Wearable technology solutions
Professional services
Deloitte UK: Professional services
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Property & Tenders
Derby City Council
Property & Tenders
Diary dates
06-07 Mar 2020
Palazzo del Ghiaccio, Milan, Italy
Diary dates
23-25 Mar 2020
Hilton, Barcelona, Spain
Diary dates
25 Mar 2020
Executive Boardroom, Middlesex University, London, United Kingdom
Diary dates
25-26 Mar 2020
Eastwood Hall, Nottingham, United Kingdom
Diary dates
26-29 Mar 2020
The Winter Gardens Blackpool, Blackpool , United Kingdom
Diary dates
27-29 Mar 2020
TeatroGoya Multiespacio, Madrid, Spain
Diary dates
19-24 Apr 2020
tbc, Beijing, China
Diary dates
04 Jun 2020
Marriott Forest of Arden Hotel & Country Club, Birmingham, United Kingdom
Diary dates
13 Jun 2020
Worldwide, Various,
Diary dates
17-18 Jun 2020
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2020
Loews Coronado Bay Resort, Coronado, United States
Diary dates
17-23 Oct 2020
Pinggu, Beijing, China
Diary dates
30-31 Oct 2020
NEC, Birmingham, United Kingdom
Diary dates
27-28 Nov 2020
Athena, Leicester, United Kingdom
Diary dates
Search news, features & products:
Find a supplier:
Zimmer MedizinSysteme GmbH / icelab
Zimmer MedizinSysteme GmbH / icelab