Club Industry is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Revenue Improved for Health Clubs in 2010, IHRSA Says

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.

TAGS: News
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.