Leading health clubs demonstrated balancing revenue improvements with expense management in 2011, according to The 2012 Profiles of Success, which was recently published by IHRSA. After two consecutive years of increased revenue, clubs showed a willingness to invest in staff and reward loyal employees, indicated by a slight increase in payroll cost as a percent of total revenue.
In 2011, payroll consisted of 43.5% of total revenue, while this figure stood at 42.2% in 2010. However, staffing levels decreased slightly for sample clubs. The typical club reported employing about 43 part-time staff and 17 full-time staff in 2010, compared with 37 part-time and 15 full-time in 2011. In addition, the typical respondent reported revenues of $78,400 per full-time equivalent employee.
Profiles of Success provides a detailed analysis of the annual performance of leading health clubs, including results in key metrics such as revenue and membership growth, payroll, member retention, non-dues revenue, and EBITDA. Profit center analysis as well as income statement and balance sheet data are also provided.
Although not all club segments fared the same in 2011, the overall sample reported growth in revenue and membership by 3.6% and 3.1%, respectively. Clubs posted a median member retention rate of 71.9%, a modest increase from the 70% reported by the 2011 sample. Additional key findings:
• Fitness-only clubs reported a retention rate of 82%, the highest for any club segment;
• All clubs reported a median of 59 visits, up from 54 visits in 2011;
• All clubs reported a median of $867.50 in revenue per individual member, and more than $1,000 was generated per individual member at independent and large clubs (with 60,000 square feet or more);
• Nearly one-third of all revenue was derived from non-dues sources; and
• Roughly 5% of all revenue is derived from spa services at multipurpose clubs.
The 2012 Profiles of Success (available at ihrsa.org/profiles) is based upon membership and financial data for 2011 and 2010, provided voluntarily by 99 IHRSA members, representing 3,256 facilities.
Melissa Rodriguez received her B.A. in English and B.A. in Biology from Atlantic Union College in Lancaster, Massachusetts and her M.B.A. in Financial Management from La Sierra University in Riverside, California. She holds a certified personal training certification through NASM and a certified strength and conditioning specialist designation from the NSCA. Her experience as a personal trainer and research specialist grants her valuable insight into fitness consumer behavior and club operations.
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