Latest IHRSA Profiles of Success Reports Revenue Growth of 5.3% for Leading Health Clubs
Posted: October 21, 2015 in IHRSA
IHRSA Profiles of Success
BOSTON, MA – The International Health, Racquet, and 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 key performance metrics such as revenue and membership growth, payroll, member retention, non-dues revenue, and EBITDA. Profit center analysis as well as income statement and balance sheet data are also provided.
“IHRSA’s annual industry data survey results indicate that leading club operators continue to play to their strengths as respondents recorded improvements in key financial and membership metrics,” said Jay Ablondi, IHRSA’s executive vice president of global products. “This year’s results show multipurpose and independent club reported strong retention results in 2014, while fitness-only and chain facilities posted high net membership growth. All segments increased revenue on a year-over-year basis.”
Overall, clubs posted revenue growth of 5.3 percent from 2013 to 2014. Multipurpose and independent clubs reported median retention rates of 69 percent and 79 percent, respectively. Fitness-only clubs reported a median net membership growth of 4.2 percent, while clubs part of a chain achieved a median net membership growth of 9.4 percent, the highest among all segments observed.
Additional key findings:
- Fitness-only clubs reported the greatest revenue growth across all segments by club type (+8.9 percent).
- Multipurpose clubs generated the greatest revenue per individual member ($810.80).
- Smaller clubs generated less revenue per individual member ($637.50) in comparison with larger clubs ($1,298.60), but achieved greater gross revenue growth (8.2 percent vs. 3.5 percent).
- Total payroll claims a median 39 percent of total revenue for all responding clubs.
- Clubs reinvested roughly 3 percent of total revenue into fitness equipment.
“Profiles of Success provides results and analyses for managers to measure their club’s progress against, increase membership retention, and expand on the existing consumer base that regularly utilize health clubs,” said Melissa Rodriguez, IHRSA’s senior research manager. “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 2013 and 2012, provided voluntarily by 124 club companies, representing 6,819 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:
- 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 in full or in sections at www.ihrsa.org/profiles. The entire PDF can be purchased for $499.95 (or only $249.95 for IHRSA members). The three separate parts are available for $179.95 (or $89.95 for IHRSA members) each.
