IHRSA Report Shows Steady to Improved Performances
BOSTON – A new tends survey from The International Health, Racquet and Sportsclub Association (IHRSA) shows that for the month of July 2009 relative to July 2008, 67 participating U.S. IHRSA clubs indicated comparable or improved performance in several key areas of business. Although many clubs reported declines in membership dues (45%), membership accounts (42%) and non-dues revenue (37%), the majority reported similar or improved performance. Over half of respondents indicated steady or increased membership dues/fees revenue (55%) and number of membership accounts (58%). Six out of 10 participants (62%) indicated comparable or increased revenue from non-dues services.
Respondents also reported favourable performance in other aspects of operations. Nearly half (49%) of participants acknowledged that overall member and non-member visits were up for the first seven months of 2009 compared to the same time span in 2008. While 40% of respondents indicated declines in EBITDAR (earnings before income tax, depreciation, amortization and rent), nearly six out of 10 (59%) reported the same or better EBITDAR.
Revenue improvements and expense management may be helping club owners and managers stay on track with plans to make capital expenditures in equipment, expansion or remodeling. Approximately two-thirds (66%) of respondents indicated plans to make such investments over the next three months. Over half indicated making such expenditures for equipment in the last three months. “In spite of economic conditions, clubs are committed to adding value to memberships by planning for expenditures to improve operations and enhance club offerings,” said Rodriguez.
Participants remain optimistic regarding business operations as nearly 79% anticipate equal or increased revenue over the next three months.
For more information on IHRSA research, visit IHRSA.org/research.
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