operations, at 66.7%. In terms of
club size, larger facilities generated
significantly more revenue per
member per year (US$975.30) than
smaller ones (US$479.70). as well, which is reasonable, since
facilities with more space can
offer more activities, services, and
amenities, which consumers are
willing to pay for.
The respondents also reported that,
in 2017, US$3 out of every US$10 of
income came from non-dues
related services, i.e., personal
training, Pilates, nutritional
counselling, spa services, and other
offerings. “That’s a valuable statistic
because, historically, non-dues
revenues has not only contributed to
the bottom line, but also has been
linked to higher retention,” Rodriguez
points out. “The industry axiom, ‘The
more they pay, the longer they stay,’
remains valid.” Predictably, multipurpose clubs
reported that they were able to
assess significantly higher initiation
fees and monthly dues 66% greater
than those changed by fitness-only
facilities.
The fact that the clubs
encompassed by the study continue
to hold onto seven out of 10 of their
members testifies to their success
in creating a strong, symbiotic
relationship with them, she stresses.
High retention is critical in that it
allows clubs to spend less money
and staff time on recruiting new
members.
It’s important to note that, while the
sales and marketing costs
associated with new accounts
had been declining for three
consecutive years—from a high of
US$118 in 2013, to a low of US$66 in
2016—that figure jumped to US$98 in
2017. It’s a clear indication that the
competition for new members has
been heating up.
Fees and Dues
What about prices? In the past,
they’ve tended to vary greatly, and
2017 was no exception.
As a club’s total indoor square
footage increases, prices increase
The median figure for all clubs
was US$74 for enrolment fees and
US$61 for monthly dues. The US$74
enrolment represents an increase of
nearly 14% over the US$65 charged
in 2016. Over the course of a year,
club members paid a median of
US$732 in annual dues, an increase
over the US$720 reported in 2016.
Such increases could be an
indication that, given a stronger
economy in 2017, some consumers
may be becoming a little less price-
sensitive.
Also, 16% of the respondents
indicated that they levied no
enrolment or initiation fee, a slight
drop from 17% in 2016, and well
below the 23% reported in 2014.
“Such variations in price might be
difficult for consumers to reconcile,”
Rodriguez concedes. “However, the
variety of pricing options ensures
that each consumer is able to find
the price point that’s right for them.
However, the issue of pricing will
continue to be very important going
forward, as concerns about inflation
and interest rate hikes weigh on both
clubs and consumers.”
expense for clubs, one that
operators follow closely and attempt
to control, and, in 2017, the survey
respondents were largely successful
in doing so. Staff levels and expenses
remained relatively flat.
For the most part, employee levels
have stabilised since many clubs
“right-sized” in 2009, following the
severe economic slump of 2008, In
2010, some began hiring when the
economy began to improve, but
others discovered that they were
able to “do more with less” without
compromising member service. That
seems to remain a viable strategy.
Today, according to Profiles, the
typical club employs about 13
full-time and 45 part-time staff.
Employee head counts were
relatively stable for most types of
facilities. Many clubs employ part-
timers to ramp up, or down, as
needed, and, balancing the scales,
when the number of part-timers falls,
the number of full-timers tends to
rise.
Similarly, payroll as a percent of
revenue was nearly constant, at
43.4% in 2017 vs. 43.7% in 2016. Each
full-time equivalent employee
generated an average of US$97,810
for their employer for the year.
Obtaining the Report
The 2018 IHRSA Profiles of Success is
the most accurate and up-to-date
industry benchmarking resource
available. To purchase the complete
report, log on to ihrsa.org/profiles
or call +1 617-951-0055; the cost is
AU$249.95 for IHRSA members and
AU$499.95 for non-members.
Staffing and Payroll
Labour is always a substantial
WHAT’S NEW IN FITNESS - SUMME 2018
ABOUT IHRSA
Founded in 1981, IHRSA – International
Health, Racquet & Sportsclub
Association – is the industry’s global
trade association, representing more
than 10,000 health and fitness facilities
and suppliers worldwide. Locate an
IHRSA club at www.healthclubs.com.
To learn how IHRSA can help your
business thrive, visit www.ihrsa.org. John
Holsinger, IHRSA’s Director, Asia Pacific,
can be contacted at [email protected] or
on mobile 0437 393 369.
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