Health Club Management January 09

ihrsa
review
back to basics
Kate Cracknell highlights the key themes emerging from this
year’s IHRSA European Congress, and summarises the
fi ndings of the IHRSA European Market Report 2008
he eighth annual IHRSA in the world, but the largest airline full “Today’s consumer is very savvy, using
T
European Congress took stop. The company aims to achieve this by the internet to compare deals. There’s
place in Lisbon, Portugal, focusing on its core offering and delivering no middleman any more. The consumer
from 23–26 October this consistently well. People don’t is king, and becomes loyal almost
2008, and attracted more need gimmicks when fl ying, said Ryan, subconsciously through experience.
than 400 attendees from 25 countries. they need punctuality, modern aircraft, Other airlines might sometimes have a
The event, which offers a combination professional staff and consistently low cheaper fl ight than us, but people always
of presentations, seminars and fares. By offering this – “a simple model in come to us fi rst to check.”
networking, was held in conjunction with a complex fi eld” – he believes Ryanair has Industry consultant Rod Hill picked
the launch of the 2008 IHRSA European redefi ned value and service. up on a number of points made by
Market Report (see our summary on p56). “You have to remain true to your core Ryan when he spoke about the greatest
The Congress keynote by Kell Ryan, co- business and not try to be all things to opportunities and threats facing the
founder of Ryanair, was followed by two all people,” Ryan continued. “If you want health and fi tness industry today. “In
days of thought-provoking presentations, to eat, go to a restaurant. If you want to recessions, people think about their
many of which revolved around common fl y, go to Ryanair.” health more than at other times,” he said,
themes – leadership, member service, staff Believing in the potential of your staff suggesting that, as they realise they may
motivation – and, says IHRSA director of is also key, he continued, as is securing have to work later into life than expected
Europe Hans Muench, “provided valuable their buy-in and sense of ownership of – and that they need to stay healthy to do
strategic and operational insights into the business – “passion drives a business”. so – they will keep exercising. He drew a
growing in diffi cult times”. He said that Ryanair staff are highly comparison with the hospitality industry
paid compared to other airlines and all by quoting hotelier Horst Schultz: “I will
passion drives proﬁ t have share options, ensuring it’s in each not accept the explanation of a recession
In his keynote speech, entitled Leading a and every one of their interests for the negatively affecting the business. There
Business Revolution, Ryan spoke about business to do well. are still people travelling. We just have to
entering uncharted waters and Ryan also encouraged delegates to get them to stay in our hotel.”
redefi ning business models. embrace the internet, which he said has Price matters, continued Hill, picking
The aim for Ryanair, he said, is for it to transformed Ryanair’s business – 96 per up on a key theme of Ryan’s speech – and
become not just the largest budget airline cent of all bookings are now made online. the mid-market is under attack. However,
Hill sees commoditisation as the biggest
threat: “People can always build a club
cheaper than yours”. We must build
a brand, selling on emotional benefi ts
rather than price, he continued. Fitness is
about making people look and feel better.
It’s about combating illness. “We should
be able to build a brand around this.”
Key to this theory is going back
to basics – to hands-on passion and
getting service right. “We’re not in the
coffee business serving people. We’re
in the people business serving coffee,” a
Starbucks employee once famously said.
Fitness should also be approached from
Keynote speaker Kell Ryan
(centre), co-founder of Ryanair,
talks to delegates at the
IHRSA European Congress
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