IHRSA Index Attests to Industry Strength
The International Health, Racquet & Sportsclub Association (IHRSA) announced the release of the IHRSA Index results for 2010, which demonstrates the financial performance of the commercial health club industry.
“Our survey of 16 leading U.S. health and sports club companies, representing a total of 498 facilities, shows that performance was robust among commercial health clubs in 2010,” said Jay Ablondi, executive vice president of global products for IHRSA. Improved performance indicators were also reported for the quarter ending December 31, 2010 relative to the quarter ending December 31, 2009. Same-store performance varied from consistent to slightly improved for the fourth quarter and full year 2010.
For the full year ending December 31, 2010, the IHRSA Annual Financial Index improved performance in revenue, membership dues revenue, non-dues revenue, and EBITDAR. Total revenue increased by 5.9 percent over 2009. Membership dues revenue increased by 3.5 percent, and non-dues sales improved by 11.8 percent. EBITDAR also 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.
Non-dues revenue saw the greatest increase in the fourth quarter of 2010, increasing by 13.4 percent over the fourth quarter of 2009. Clubs also posted increases in total revenue (6.4 percent) and membership dues revenue (3.7 percent). 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,” explained Ablondi. “IHRSA regularly tracks CPI 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 December 31, 2010, roughly two-thirds (66.3 percent) of participating clubs reported increases in total revenue, while over half (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.
For more results and analysis on the IHRSA Quarterly Index Study and Monthly Trends Study, visit the IHRSA Research Portal at www.ihrsa.org/research. Subscribers to the IHRSA Research Portal are able to download current and archived quarterly and monthly results for readily accessible, up-to-date club operations research data.
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