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
Fundamentally, customers don’t want choice, they just want exactly what they want Pine & Gilmore
People
HCM people

Aaron Brooks-Thornett

Freely Given PT: founder
A donation-based payment system creates a non-discriminatory environment and empowers people to give what they think the service is worth. This also challenges me to keep service levels high
People
I don’t see any reason why we couldn’t double the size of our European portfolio of david lloyd clubs over the next four years
Features
Policy
CIMSPA and UK Coaching are combining REPs and the CIMSPA Exercise and Fitness Directory. Tara Dillon, CEO of CIMSPA and Mark Gannon, CEO of UK Coaching, explain what it means for exercise professionals and employers
Features
Promotional feature
With a longstanding professional career in the fitness industry, we talk to Dawn Falkner Clark to find out more about her background and what the future holds for Be Fit Be You
Features
feature
Consumers are seeking varied, effective workouts. It’s time to take a new approach to designing fitness areas, as Physical Company’s James Anderson explains
Features
Research
A new study by Decathlon looks at the most popular types of physical activity by region and time of year, revealing some interesting insights into the health and fitness industry
Features
Insight
The CEO of Basic-Fit shared insights into the workings of the company at the Virtuagym FitNation conference in Amsterdam. Megan Whitby was there for HCM
Features
Supplier showcase
DiR Clubs – the largest fitness operator in Spain – appointed fisikal as its digital partner in 2019, with a 12 month plan for integration. As phase one comes to an end, we talk to Jordi Forns, co-director of fitness clubs at DiR, about why the brand committed to such a fundamental change
Features
HCM research
Researchers say obesity ‘should be considered as premature ageing’, with some negative effects on the immune system being permanent and not reversible by weight loss
Features
Latest News
Physical activity sector bodies have welcomed the government's measures to help the UK's self-employed workers ...
Latest News
Hollywood star Chris Hemsworth is making his online fitness programme Centrfit available for free for ...
Latest News
American Council on Exercise (ACE) has urged US policymakers to not leave the fitness sector's ...
Latest News
Humphrey Cobbold, CEO of Pure Gym, appeared on BBC Question Time last night (26 March ...
Latest News
A new national campaign has been launched to encourage people to stay physically active at ...
Latest News
ClassPass will begin offering its partners the opportunity to live-stream classes through its app and ...
Latest News
Gym operators are pivoting to digital in a stampede to engage with members during the ...
Latest News
Leading organisations in the physical activity sector have urged chancellor Rishi Sunak to provide urgent ...
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: RLSS UK - First choice for all aquatic rescue, pool management, first aid qualifications and training
The Royal Life Saving Society UK (RLSS UK) is proud to be the industry leader in water-related safety qualifications and training. More than 40,000 pool lifeguards qualify with a RLSS UK National Pool Lifeguard Qualification (NPLQ) every year.
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.
Opinion
promotion
The modern training gym champions functional fitness in a small group personal training model, with a premium service experience at its heart
Opinion: Overcome membership attrition with this surprising new industry trend: the modern training gym
Video Gallery
Wattbike AtomX
Wattbike
Join our tribe. Become powered by Wattbike. Read more
More videos:
Company profiles
Company profile: Pavigym
PAVIGYM is the premier innovator of flooring and interactive solutions for the global fitness industry....
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
Locking solutions
Ojmar: Locking solutions
Fitness equipment
Healthcheck Services Ltd: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Exercise equipment
Star Trac / Core Health & Fitness: Exercise equipment
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Trade associations
International SPA Association - iSPA: Trade associations
Lockers/interior design
Fitlockers: Lockers/interior design
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Wearable technology solutions
MyZone: Wearable technology solutions
Direct debit solutions
Harlands Group: Direct debit solutions
Property & Tenders
Greywell, Hampshire
Barnsgrove Health and Wellness Club
Property & Tenders
Derby City Council
Property & Tenders
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
06-07 Jul 2020
Eastwood Hall, Nottingham, 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
Physical activity sector bodies have welcomed the government's measures to help the UK's self-employed workers ...
Latest News
Hollywood star Chris Hemsworth is making his online fitness programme Centrfit available for free for ...
Latest News
American Council on Exercise (ACE) has urged US policymakers to not leave the fitness sector's ...
Latest News
Humphrey Cobbold, CEO of Pure Gym, appeared on BBC Question Time last night (26 March ...
Latest News
A new national campaign has been launched to encourage people to stay physically active at ...
Latest News
ClassPass will begin offering its partners the opportunity to live-stream classes through its app and ...
Latest News
Gym operators are pivoting to digital in a stampede to engage with members during the ...
Latest News
Leading organisations in the physical activity sector have urged chancellor Rishi Sunak to provide urgent ...
Latest News
Fitness giant Technogym will enable club operators to offer at-home training and coaching services to ...
Latest News
Be Military Fit with Bear Grylls (BMF) will activate its network of ex-armed forces personnel ...
Latest News
Boutique fitness brand Frame has launched an 'online studio', offering a selection of virtual exercise ...
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: RLSS UK - First choice for all aquatic rescue, pool management, first aid qualifications and training
The Royal Life Saving Society UK (RLSS UK) is proud to be the industry leader in water-related safety qualifications and training. More than 40,000 pool lifeguards qualify with a RLSS UK National Pool Lifeguard Qualification (NPLQ) every year.
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.
Opinion
promotion
The modern training gym champions functional fitness in a small group personal training model, with a premium service experience at its heart
Opinion: Overcome membership attrition with this surprising new industry trend: the modern training gym
Video Gallery
Wattbike AtomX
Wattbike
Join our tribe. Become powered by Wattbike. Read more
More videos:
Company profiles
Company profile: Pavigym
PAVIGYM is the premier innovator of flooring and interactive solutions for the global fitness industry....
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
Locking solutions
Ojmar: Locking solutions
Fitness equipment
Healthcheck Services Ltd: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Exercise equipment
Star Trac / Core Health & Fitness: Exercise equipment
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Trade associations
International SPA Association - iSPA: Trade associations
Lockers/interior design
Fitlockers: Lockers/interior design
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Wearable technology solutions
MyZone: Wearable technology solutions
Direct debit solutions
Harlands Group: Direct debit solutions
Property & Tenders
Greywell, Hampshire
Barnsgrove Health and Wellness Club
Property & Tenders
Derby City Council
Property & Tenders
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
06-07 Jul 2020
Eastwood Hall, Nottingham, 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