Fitness Business Canada January/February 2013

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Happenings IHRSA Profi les of Success

IHRSA Profiles of Success Shows

More than 3,000 Facilities Grow Revenue & Membership; Leading Club Operators Successfully Weather the New Economic Environment

The International Health, Racquet,

More than 3,000 Facilities Grow Revenue & Membership; Leading Club Operators Successfully Weather the New Economic Environment

The International Health, Racquet, and Sportsclub Association (IHRSA) has released the 31st edition of its annual Industry Data Survery (IDS) results and the accompany- ing publication, the 2012 IHRSA Profi les of in. The report provides a detailed anal- HRSA's Executive Vice President of Global Products. "Although not al club segments fared th same, the ov rall ample reported growth in revenue and m mbership by 3.6 percent and 3.1 per- nt, respectively."

and Sportsclub Association (IHRSA) has released the 31st edition of its an- nual Industry Data Survey (IDS) results and the accompanying publication, the 2012 IHRSA Profiles of Success . The re- port provides a detailed analysis of the annual performance of leading health and fitness clubs, including results in key metrics such as revenue and mem- bership growth, payroll, member reten- tion, non-dues revenue, and EBITDA. Profit centre analysis as well as income statement and balance sheet data are also provided. "IHRSA's annual industry data sur- vey shows nearly 100 companies, rep- esenting more than 3,000 facilities, post s rong p rformance indicators

Success a new economy" said Jay Ablondi, ysis o If the annual performance of leading health and fi tness clubs, including results in key metrics such as revenue and mem- bershi sp growth, payroll, member retention, non-dues revenue, and EBITDA. Profi t cen- tre ancaelysis as well as income statement and balance sheet data are also provided. f member retention of 71.9 pe c nt, a modest increase from a 70 percent member retention rate reported by the 2011 sample. Additional key findings: • Fitness-only clubs reported a reten- ion rate of 82 percent, the highest for any club segment.

Overall, clubs posted a median rate “IH oRSA's annual industry data survey shows nearly 100 companies, representing more than 3,000 facilities, post st ong per- formance indicators in a new economy,” says Jay Ablondi, executive vice president of glob al protducts. “Although not all club segments fared the same, the overall sample reported growth i •n revenue and membersh p by 3.6 percent and 3.1 percent, respectively.”

All clubs reported a median of 59 visits, up from the 2011 samp e, which

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8 Fitness Business Canada January/February 2013 stock image

Overall, clubs posted a median rate of member retention of 71.9 percent, a modest increase from a 70 percent member retention rate reported by the member, more than $1,000 was gener- r individual membe at ind

reported 54 visits. • All clubs reported a median of $867.50 in r venue per individual 2011 sample. Additional key fi ndings: ate•d Fi pteness-only clubs reported a re- tention rate of 82 percent, the highest square feet or more).

pendent nd large clubs (with 60,000 for any club segment.

• All clubs reported a median of 59 Nearly one-third of all revenue was

derived from non-dues sources. • Roughly 5 percent of all revenue is derived from spa services at multipur- $867.50 in revenue per individual me"mber, more than $1,000 was gen r- balancing re enue improvements with expense management," said Melissa Rodrigu z, IHRSA senior research ma •n Nearly one-third of all revenue was of increased revenue, clubs showed a ll revenue is

visits, up from the 2011 sample, which reported 54 visits. • All clubs reported a median of

pose clubs.

Leading clubs again demonstrated ated per individual member at inde- pendent and large clubs (with 60,000 square feet or more).

lingness to invest in staff and re- derived from spa services at multipur- slight increase in payroll cost as a per- “Leading clubs again demonstrated balancing revenue improvements with percent of tot

ager. "Aft r two consecutive years derived from non-dues sources. wil• Roughly 5 percent of

ward loyal employ es, indicated by a pose clubs.

cent of total revenue."

In 2011, payroll consist d of 43.5 expense managementu,” says Melissa Rodriguez, IHRSA senior research Howev

l rev e, while thi

figu e stood at 42.2 percent in 2010. manager. “After two consecutive years of increased revenue, clubs showed a to the report, club managers may have increased pay and implemented

, staffing levels decreased

slightly for sample clubs. According willingness to invest in staff and re- ward loyal employees, indicated by a slight increase in payroll cost as a per- cent of total revenue.”

canfitpro Personal Training, Group Fitness and Aquafitness Conference and Trade Show February 7 – 10, 2013 Fairmont The Queen Elizabeth – Grand Salon, Montréal

• Over 100 sessions with the latest in personal training, group fitness, aquafitness, cycling, mind- body, nutrition and more • CPR Level A and AED onsite • pre-conference workshops available • 7,000+ square foot trade show For details and to register, visit www.canfitpro. com.

canfitpro Toronto One-Day Event Saturday, March 2, 2013 Marriott Downtown Eaton Centre Hotel

Featured presenter - Dr. Natasha Turner

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The 2012 IHRSA Profi les of Success may be purchased in full or in sections at ihrsa.org/profi les.

canfitpro Toronto One Day Event Saturday, March 2, 2013 Marriott Downtown Eaton Centre Hotel Featured presenter - Dr. Natasha Turner

Visit canfitpro.com/toronto- oneday for more information.

incentives for loyal employees. In The Future is Bright, a separate IHRSA publication, several sources forecast growth in employment for fitness workers in the health club industry. "Increased profitability may have also favorably affected capital ex- penditures from club operators," said Ablondi. "Clubs spent roughly 5 per- mented incentives fornue on fitness & of- fi locyeal employees. In The Future is Bright, a sepa-

nue in such expenditures. Clubs can consider reinvestment as well as for fi tness workers in the

ndicated devot ng 4 percent of total several sources forecast growth in employment

rks for which to measure their city may have also favor-

lub's fin ncial results against."

ably affected capital expenditur ies from upon membership and fi ancial data for 2011 and 2010, provided voluntari- by 99 IHRSA members, represent- ng 3,256 facilities. The report provides key performance ndicators for several lub types: fitn ss-only, multipurpose, ndependent, and multi-chain facili- ties. Performance is also presented and analyzed by club size. A snapshot of h alth club consumer participation and demographics is also i cluded in th The 2012 Profi les of Success is based a profit centre section that analyzes revenue streams from racquet sports, pas, pro shop/retail, food & bev rage, nd children's/youth programs.

The 2012 Profiles of Success s based club operators,” says Ablondi. “Clubs spent roughly 5 percent of total revenue l oyn fi tness & offi ce equipment as well i as grounds, up slightly from last year's sample, which indicated devoting 4 per- cent of total revenue in such expendi- itures. Clubs can consider reinvestment as well as other cost and revenue indi- cators reported in Profi les of Success as benchmarks for which to measure their club's fi nancial results against."

e report. The report also contains upon membership and fi nancial data for 2011 and 2010, provided voluntari- sly by 99 IHRSA members, represent- aing 3,256 facilities. The report provides key performance indicators for several club types: fi tness-only, multipurpose, Th independent, and multi-chain facili- purchased in full or in sections at ihrsa.org/ profi es.

e 2012 IHRSA Profiles of Su cess m y be ties. Performance is also presented and analyzed by club size. A snapshot of health club consumer participation and demographics is also included in the report. The report also contains a profi t centre section that analyzes revenue streams from racquet sports, spas, pro shop/retail, food & beverage, and children's/youth programs.

In 2011, payroll consisted of 43.5 percent of total revenue, while this fi gure stood at 42.2 percent in 2010. However, staffi ng levels decreased slightly for sample clubs. According to the report, club managers may have in- creased pay and imple- cent of total re

equipment as well as grounds, up slightly from last year's sample, which irate IHRSA publication, re

other cost and revenue indicators re- health club industry.

ported in Profiles of Success as bench- ma“Increased profi tabil-

8 Happenings | 14 Conference | 16 Q&A 18 Training | 20 What’s New

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