IHRSA Releases 2016 Profiles of Success
Posted: November 2, 2016 in IHRSA
2016 Profiles of Success
BOSTON, MA – The International Health, Racquet & Sportsclub Association (IHRSA) released its annual Industry Data Survey (IDS) results and the accompanying publication, IHRSA Profiles of Success. The report provides a detailed analysis of the annual performance of leading health and fitness clubs, including results in key metrics such as revenue, membership growth and retention, traffic, payroll, non-dues revenue and EBITDA. Club reinvestment and profit center analysis as well as income statement and balance sheet data are also provided.
“IHRSA’s annual Industry Data Survey results show how leading club operators stand out, posting strong performance in financial and membership indicators,” said Jay Ablondi, IHRSA’s executive vice president of global products. “According to the latest survey, club operators who allocated nearly 22% of total revenue to club reinvestment, including fitness equipment, office, and facility & grounds, outperformed the overall sample in terms of net membership growth, retention, and revenue growth.”
Ninety club companies, representing more than 4,800 locations, participated in the IDS. Overall, clubs posted revenue growth of 4.1% from 2014 to 2015. Member retention and net membership growth were recorded at 71.4% and 2.4%, respectively. As a whole, participating clubs indicated reinvesting 5.6% of total revenue. Top performers, who typically reinvested 21.5% of total revenue, posted revenue growth of 4.9%, net membership growth of 6.2%, and had a member retention rate of 77.8%.
Profiles of Success also provides performance analysis for eight health club profit centers. Key profit center findings include:
- All clubs reported generating a median of 8.4% of total revenue from personal training and 1.1% of total revenue from small group training.
- In addition to personal and small group training, the top performing profit centers among all responding clubs are racquet, spa, and pro-shop/retail.
- Multipurpose clubs generated 4.8% of total revenue from racquet.
- Fitness-only clubs generated a greater percentage of total revenue from pro-shop/retail than multipurpose clubs (2.6% vs. 1.5%).
“With Profiles of Success, club operators can compare their performance results across profit centers, membership growth and traffic as well as income and expense categories,” said Melissa Rodriguez, IHRSA’s senior research manager. “Along with The IHRSA Health Club Consumer Report, Profiles is an annual must-have publication for any club operator seeking to better understand health club performance, improve insights on fitness consumers, and, ultimately, grow their business.”
Profiles of Success is based upon membership and financial data for 2015 and 2014, provided voluntarily by 90 club companies, representing 4,865 facilities. The report provides key performance indicators for several club types: fitness-only, multipurpose, independent, and multi-chain facilities as well as breakouts by club size and monthly dues. A snapshot of health club consumer participation and demographics are also included. In addition, the publication contains a profit center section that analyzes revenue streams from personal and small group training, racquet sports, spas, pro shop/retail, food & beverage, children’s/youth programs, and aquatics/pool.
The report is also available in three parts for those who don’t need the full publication:
- Part 1: Executive Summary and Industry Outlook;
- Part 2: Membership Pricing, Payroll, and Facilities;
- Part 3: Financial and Operating Performance.
Profiles of Success may be purchased at ihrsa.org/profiles. The entire PDF can be purchased for $499.95 ($249.95 for IHRSA members). The three separate parts are available for $179.95 each ($89.95 each for IHRSA members).
The IHRSA Health Club Consumer Report is available at ihrsa.org/consumer-report for $199.95 ($99.95 for IHRSA members).
For more information or questions, contact IHRSA Research, research@ihrsa.org, or call (617) 951 – 0055.
