11 For IHRSA ’11!


Frannie DiNatale, general manager/COO, The Arena Club, Bel Air, Maryland


DiNatale couldn’t have better news: Last year was the best one ever for The Arena Club. “In seven years, this business has never produced the


membership numbers, revenue, or EBITDA (earnings before interest, taxes, depreciation, and amortization) that it did in 2010. At the close of the third quarter, we were holding at 20% EBITDA, a 9% growth in member- ship, and a 75% retention rate. Our EBITDA was up 3.5% compared with the same period in 2009, which was also a strong year for us.” Why the stellar performance? Two-and-a-half years ago,


DiNatale began implementing a plan to automate her sys- tems and eliminate redundancies. She also cut her payroll by hiring fewer, more qualified managers at a slightly higher wage. She emphasized service training, and reinvested in her fitness and aquatics facilities. “We’re commit- ted to reinvesting 5% of revenue in our facility annually.” This year, DiNatale intends to


focus on providing the best service possible. She projects a 5% increase in revenue, and will strive to main- tain a 20% EBITDA margin. “Our goal for 2011 is a 5%-9% growth in membership.” She hopes to be at the IHRSA convention if attending


doesn’t conflict with the marathon she’s planning to run. “I look to IHRSA for new industry ideas and trends that are a good fit for what we’re doing.”


Barry Walsh, managing director, Health Escape, Dublin, Ireland


Barry Walsh has managed exceedingly well, despite an Irish economy that’s still plagued by sagging consumer confidence, a 13% unemployment rate, and higher government taxes. “The outlook isn’t likely to improve in 2011,” he observes. Still, his membership dues were stable in 2010. “Our EBITDA actually grew, thanks to our cost-control


efforts, and because we were able to negotiate a reduction in our rent and service charges.” Walsh has also expanded his club by 10%, taking it to 33,000 square feet, by leasing the building


next door. “Now, we’re one of the largest, as well as one of the most expensive, clubs in Dublin. Our annual dues are i900 ($1,239), and our monthly dues, i79 ($109).” While Walsh is being challenged by “low-cost” club business models, he says their impact has


been minimal. “They demonstrate to consumers how professional and focused we are. We’ve always maintained a strong customer focus and are constantly training our team of professionals.” Walsh plans to grow his membership by 8% in 2011, and by 25% by 2014, providing the economy


improves. “We’ll continue to innovate and identify ways to improve on what we deliver—inspired by what we learn at the IHRSA European Congress and IHRSA’s upcoming annual convention and trade show.”


Leslie Shinners, general manager, Freedom Aquatics & Fitness Center, Manassas, Virginia


Shinners has promising news to share, as well. “Between mid- 2007 and March 2010, our mem- bership declined by about 15%. However, since then, our num- bers have been increasing slowly, but steadily, which is very encouraging. Our profit centers— personal and group training, instructional programs, and sum- mer camps—have been attract- ing increased participation. The revenue from them has kept us


afloat, and, as a result, we’ve been able to maintain sat- isfactory profitability for the last three years. “We’re rebuilding our membership numbers by


increasing our focus on retention from the moment a person joins. We’re projecting a 5% increase in member- ships in fiscal 2011, over fiscal 2010.” Now that things are improving at her club, Shinners


is looking beyond 2011, to the IHRSA convention and trade show in 2012. “Going to IHRSA reenergizes our staff and gives us new ideas. That’s true of all our employees—even those who don’t attend. We look to IHRSA, in particular, to learn about best practices and new retention strategies.”


50 Club Business Internat ional


|


JANUARY 2011 |


www. ihrsa.org


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