IHRSA Monthly Performance Index Signals Market Growth; Club Operators Expect Favorable Business Conditions Ahead
BOSTON, MA - August 12, 2010 - The International Health, Racquet and Sportsclub Association (IHRSA) announced the results of IHRSA’s Monthly Trends Survey, which indicates that U.S. health clubs improved their performance in May 2010 compared to May 2009.
Year-to-date total revenue, month-end total, and non-dues revenue were about the same or better for most respondents. Total revenue year-to-date increased for 40.5 percent of respondents, while total month-end and non-dues revenue increased for 44.4 percent of participating clubs. Overall, the IHRSA Monthly Performance Index reached an index of 104.2, signaling an expansionary club market.
“IHRSA’s May Index shows that club operators have achieved performance growth and nearly 90 percent of respondents are optimistic about future revenue,” said Jay Ablondi, executive vice president of global products at IHRSA. “Non-dues programs at participating clubs have been particularly profitable, contributing to overall increased revenue.”
Membership dues revenue was up for 37.8 percent of respondents in May 2010 relative to May 2009. Nearly four out of 10 (37.8 percent) club operators reported an increase in the number of accounts added, while one out of four (25.0 percent) respondents indicated an increase in the number of account dropped. Member and non-member club visits were about the same or up for a majority of responding clubs (77.1 percent). Total number of tours were up for 34.3 percent of clubs and down for 42.9 percent of facilities.
“Club operators appear to be engaging current members as evident by consistent club and non-dues spending,” said Melissa Rodriguez, research manager at IHRSA. “To continue growing, managers may need to seek opportunities to increase tours in efforts to bolster membership.”
Respondents are optimistic towards the next few months of business as an overwhelming majority made capital expenditures for equipment over the last three months and plan to continue to reinvest into their clubs. Nearly nine out of 10 respondents (89.2 percent) anticipate consistent or improved revenues over the next three months.
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).
IHRSA’s July survey is currently open, and it takes only five minutes to complete. All interested club operators should participate by visiting the IHRSA Research Portal at ihrsa.org/research, where you can access more results and analysis on the IHRSA Monthly Trends Study. Subscribers to the IHRSA Research Portal can also download current and archived quarterly and monthly results for readily accessible, up-to-date club operations research data.
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