Revenue Improved for Health Clubs in 2010, IHRSA Says

Article Tools




Interact With Us



Best of 2011

Top Stories of 2011

The most popular stories of 2011. Did your favorites make our list?

View our Top 12 list here

Resource Center

Buyers Guide

Find industry businesses by product or service categories, view company profiles and more.

View our Buyers Guide

Club Industry Trade Show

Club Industry Show and Conference, held each October, is the premier event for fitness and wellness professionals. Find out more about Exhibitors, Events, and Education.

View our Trade Show

Industry Events & Trade Shows

The industry-wide calendar features listings for educational events, trade shows and more.

View our Events Calendar

Classifieds

View classified ads for health club equipment and services, plus business opportunities and job postings.

View Classifieds

Current Issue

Read stories from the latest print issue of Club Industry magazine.

View the Current Issue

E-Newsletter Signup

Breaking news on the industry, people on the move, mergers and acquisitions and much more. Delivered weekly.

Clubs participating in the International Health, Racquet and Sportsclub Association’s (IHRSA) annual financial index reported improved performance in revenue, membership dues revenue, non-dues revenue and EBITDAR for 2010, according to IHRSA.

The 16 companies represented in the industry were described by IHRSA as “leading” clubs representing 498 facilities.

Total revenue in 2010 for these clubs increased by 5.9 percent over 2009. Membership dues revenue increased by 3.5 percent. Non-dues sales improved by 11.8 percent. EBITDAR improved by 4.9 percent.

“Even though the year started with performance comparable to 2009 indicators, the quarterly index participants finished the year with strong fourth quarter results, relying on the success of non-dues programs,” said Melissa Rodriguez, manager of IHRSA research.

In fourth quarter 2010, non-dues revenue had the greatest increase at 13.4 percent over fourth quarter 2009. Clubs also posted increases in total revenue (6.4 percent) and membership dues revenue (3.7 percent) for the quarter. EBITDAR nearly reached a double-digit improvement at 9.1 percent, which was the greatest improvement the index posted for EBITDAR in 2010.

Same-store club performance was steady with some slight improvements for the fourth quarter and full year. On a quarter-to-quarter basis, same-store total revenue increased slightly by 0.9 percent. Membership dues revenue and non-dues revenue were up by 1.0 percent and 0.8 percent, respectively. Same-store performance was better on a yearly basis in comparison with quarter-to-quarter results. Over the year, same-store revenue increased by 1.8 percent, membership dues revenue by 1.5 percent and non-dues revenue by 1.8 percent.

“Index results are consistent with other recent IHRSA research findings,” says Jay Ablondi, executive vice president of global products for IHRSA. “IHRSA regularly tracks CPI (consumer price index) for fees for club dues and instruction such as personal training. We have found that the CPI for fees for instruction slightly increased in 2010, indicating consumer demand for non-dues services such as personal training.”

Results from IHRSA’s monthly survey also show improved performance indicators for select clubs. Survey results show that participating companies, representing more than 300 club locations, significantly improved performance in 2010 relative to 2009. Year-to-date as of Dec. 31, 2010, 66.3 percent of participating clubs reported increases in total revenue, while 56.3 percent of the same group indicated increases in non-dues revenue. Membership dues revenue was up for 65.7 percent of participating clubs.

Want to use this article? Click here for options!
© 2012 Penton Media Inc.

Sponsored Content

Cardio and Strength Trends
Sponsored by Life Fitness

Core Strength Conditioning
Sponsored by The AB Coaster Company

Group Exercise
Sponsored by LesMills

Technology Resource Center
Sponsored by ABC Financial

Videos

1st Annual Fitness Industry Summit 2011: Introduction

Jay Del Vecchio, World Instructor Training Schools President and CEO

Star Trac 2012 Photo Shoot: Behind the Scenes

Making of Star Trac Lifestyle Images Video.

Elevation Series iPod Compatibility

Watch the newest informative video from Life Fitness.



More Video

E-Newsletter

Newsbeat

Delivered once a week, this timely e-newsletter features breaking news, people on the move, mergers and acquisitions, supplier news, industry trends and more.

Subscribe

Most Popular

Most Recent

Insights into what high-level club executives think about their business and industry trends.

View Executive Insights

Practical Internet strategies to help you build customer relationships, increase revenues and lower costs.

View Web Savvy

In This Issue: May 2012 View All Past Issues

Cover Story

The Business of Corporate Fitness

Focusing on the corporate fitness market can present a revenue opportunity.



View the full issue
| View the digital edition

Subscribe To Club Industry Magazine

In Print and Online

Subscribe today to get the news you need and information you want from our print or digital edition as well as in our e-newsletters.

Subscribe Today!