IHRSA EUROPE UPDATE
For select health clubs, 2010 performance results exceeded 2009 indicators. Jay Ablondi reports
I
n March, IHRSA announced the results of its November and December Monthly Trends Surveys.
Survey results show that participating companies – a sample that encompasses 318 club locations around the world – significantly improved performance in 2010 relative to 2009. The IHRSA Monthly Performance Index reached 105.7 and 105.1 in November and December respectively, indicating an expansionary business environment.*
upward trends “With the economy posting positive growth in the fourth quarter, these leading clubs saw improved business conditions,” says Jay Ablondi, executive vice president of global products at IHRSA. “Responding clubs reported improved performance in revenue and membership traffi c, fi nishing 2010 on a strong note.” For the year-to-date at 31 December
2010, two-thirds (66.3 per cent) of responding clubs posted increased total revenue. Revenue from membership fees was up for 65.7 per cent of respondents, while secondary revenue improved for over half of respondents (56.4 per cent). Additionally, over three-quarters
NEWS expansionary environment
A positive note: Overall, operators participating in the survey remain optimistic
of respondents reported that EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) and EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortisation and Rent) were about the same or up for the year to date versus the previous year. Membership traffi c steadily increased
among participating clubs in both November and December. The number of membership accounts added in November 2010 versus November 2009 increased for over half of the respondents (53.9 per cent) with slightly over a quarter of participants (27 per cent) reporting an increase in the number of cancelled memberships. In December, two-thirds of clubs (66.7
per cent) indicated an increase in the number of membership accounts added in 2010 compared to 2009. Only six per cent of clubs reported an increase in the number of cancelled memberships. In November and December, 90 per
cent of clubs experienced a comparable or increased number of total visits.
Total Revenue
Membership Dues Revenue Non-Dues Revenue
Year-on-year, the majority of clubs signed up more new members
looking forward Overall, participating club operators remain optimistic, with just a few skeptical of improving business conditions. “Overall, we’ve seen a strong year, which surprised us,” comments one survey participant. “Most of our clubs are ahead of budget.” Another commented on the challenges
of increased competition: “It’s a tough market for us. Unemployment has risen in our town, new clubs are being built and the pie is getting split more ways.” Looking ahead, a vast majority (80.8 per
cent) of December respondents anticipate increased revenues in the next three months. Nearly three-quarters (73.1 per cent) expect to make capital expenditures for equipment over the same time period.
IHRSA’s monthly surveys take only fi ve minutes to complete. All interested club operators can participate by visiting the IHRSA Research Portal at www.
ihrsaresearch.com. Contact research@
ihrsa.org with any questions.
Year-to-Date December 31, 2010 vs. Year-to-Date December 31, 2009 Down About the same Up
24.3% 25.1% 21.9%
Total Survey Responses, n=33 (representing 318 clubs)
*The IHRSA Monthly Performance Index is calculated based on four current monthly business conditions indicators (revenue, number of membership accounts, number of employees, and capital expenditures on equipment) as well as three expectation indicators for the next three months (revenue, number of employees, and capital expenditures on equipment). An index of over 100 denotes an expansionary environment, representing favourable business conditions for industry growth based on these indicators.
20 Read Health Club Management online at
healthclubmanagement.co.uk/digital may 2011 © cybertrek 2011
9.1% 9.4%
21.9%
66.3% 65.7% 56.4%
PICTURE:
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PICTURE:
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