GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window
FreeMotion Fitness
FreeMotion Fitness
FreeMotion Fitness
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
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.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Small group training was the most profitable area for clubs in 2018
Small group training was the most profitable area for clubs in 2018
https://www.leisureopportunities.co.uk/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,
HCM magazine
How have consumers responded to the end of lockdowns? Cesar Carvalho shares some bounceback numbers with HCM
HCM magazine
Booming membership sales, busy suburban clubs and members visiting during the working day. Operators are reporting it’s good to be back. Kath Hudson finds out what business has been like since the re-set button was pressed
HCM magazine
The Gym Group has taken its digital hybrid strategy full circle, piloting in-gym workout pods and studios with its home workout delivery partner, Fiit. HCM talks to the team driving the project
HCM Magazine
Letters
We’re asking the music industry to reinstate the Online Music Fitness Licence and to simplify music licencing arrangements
HCM Magazine
Sponsored
Andy Janes and Jamie Whisken explain the vision behind R1SE Bournemouth, and why Technogym was their choice of partner in delivering their unique fusion boutique
HCM Magazine
Policy
Generations rarely have the opportunity to reset public opinion and effect behaviour change for good, but post-pandemic two unequal movements with a lot in common will be the focus of governments, says David Minton
HCM Magazine
Supplier launch
Life Fitness introduces Integrity SL, the next-generation LED console with intuitive functionality and digital connectivity
HCM Magazine
Sponsored
Les Mills is launching a new digital network called Les Mills Connect to help clubs build back better and emerge from the pandemic with a stronger business
HCM Magazine
Editor's letter
The appetite for health clubs is strong among consumers and investors – to take advantage of this, operators must figure out how to meet key challenges in operationally sustainable ways
HCM Magazine
Sponsored
Active IQ is launching courses to upskill fitness professionals to work in social prescribing, extending the reach of the industry
HCM Magazine
Latest News
Temporary measures brought in to support businesses in the UK from insolvency during the pandemic ...
Latest News
Nadine Dorries has replaced Oliver Dowden as the Secretary of State for Digital, Media, Culture ...
Latest News
In a major move against the gym market, Apple has revealed a number of upgrades ...
Latest News
Physical activity professionals in England will soon be able to access free, one-to-one learning with ...
Latest News
Fitness equipment giant Nautilus has acquired VAY, a firm specialising in AI and motion technology. ...
Latest News
An award celebrating outstanding individuals in the fitness sector is to be named in honour ...
Latest News
David Lloyd Leisure (DLL) has reorganised its top team in order to expand its estate ...
Latest News
Downtown Miami’s upcoming mixed-use development Legacy Hotel & Residences has signed a joint venture deal ...
Featured supplier news
Featured supplier news: EMS personal training: shockingly simple
People's fitness goals are extremely diverse – ranging from an elite athlete focused on the next goal to someone who dislikes all activity due to chronic back pain.
Featured supplier news
Featured supplier news: Life Fitness introduces Integrity SL, the next generation LED console
Life Fitness has unveiled the new Integrity SL, its connected LED console designed for the Integrity Series cardio portfolio.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operator news
Featured operator news: Everyone Active generates £342m in social value
Award-winning leisure operator Everyone Active generated £342million in social value at its sites across the country in 2019/20.
Company profiles
Company profile: Life Fitness
The Life Fitness family of brands offers an unrivalled product portfolio, providing customers with access ...
Company profiles
Company profile: Safe Space Lockers
Safe Space have over 25 years of experience in the UK leisure and fitness industry, ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Exercise equipment
Power Plate: Exercise equipment
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Wearable technology solutions
MyZone: Wearable technology solutions
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Uniforms
Service Sport: Uniforms
Management software
Premier Software Solutions: Management software
Skincare
Sothys: Skincare
Fitness equipment
Precor: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
13-14 Oct 2021
Online,
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
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.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Small group training was the most profitable area for clubs in 2018
Small group training was the most profitable area for clubs in 2018
https://www.leisureopportunities.co.uk/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
Temporary measures brought in to support businesses in the UK from insolvency during the pandemic ...
Latest News
Nadine Dorries has replaced Oliver Dowden as the Secretary of State for Digital, Media, Culture ...
Latest News
In a major move against the gym market, Apple has revealed a number of upgrades ...
Latest News
Physical activity professionals in England will soon be able to access free, one-to-one learning with ...
Latest News
Fitness equipment giant Nautilus has acquired VAY, a firm specialising in AI and motion technology. ...
Latest News
An award celebrating outstanding individuals in the fitness sector is to be named in honour ...
Latest News
David Lloyd Leisure (DLL) has reorganised its top team in order to expand its estate ...
Latest News
Downtown Miami’s upcoming mixed-use development Legacy Hotel & Residences has signed a joint venture deal ...
Latest News
Colin Waggett has revealed that the recent deal, which saw KSL Capital Partners acquire a ...
Latest News
3d Leisure has acquired franchised studio operator Yourzone45 from Elms Fitness Group for an undisclosed ...
Latest News
A new, one-day conference will create a platform for a debate on how the global ...
Featured supplier news
Featured supplier news: EMS personal training: shockingly simple
People's fitness goals are extremely diverse – ranging from an elite athlete focused on the next goal to someone who dislikes all activity due to chronic back pain.
Featured supplier news
Featured supplier news: Life Fitness introduces Integrity SL, the next generation LED console
Life Fitness has unveiled the new Integrity SL, its connected LED console designed for the Integrity Series cardio portfolio.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operator news
Featured operator news: Everyone Active generates £342m in social value
Award-winning leisure operator Everyone Active generated £342million in social value at its sites across the country in 2019/20.
Company profiles
Company profile: Life Fitness
The Life Fitness family of brands offers an unrivalled product portfolio, providing customers with access ...
Company profiles
Company profile: Safe Space Lockers
Safe Space have over 25 years of experience in the UK leisure and fitness industry, ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Exercise equipment
Power Plate: Exercise equipment
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Wearable technology solutions
MyZone: Wearable technology solutions
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Uniforms
Service Sport: Uniforms
Management software
Premier Software Solutions: Management software
Skincare
Sothys: Skincare
Fitness equipment
Precor: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
13-14 Oct 2021
Online,
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
Search news, features & products:
Find a supplier:
FreeMotion Fitness
FreeMotion Fitness