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| The 2005 Edition of Profiles of Success Available Today |
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BOSTON - November 29, 2005 - The International Health, Racquet & Sportsclub Association (IHRSA) announced today the release of the 2005 edition of Profiles of Success, IHRSA's industry data survey of the health and fitness industry.
Profiles of Success provides detailed information about health and sportsclub operations, including data for club revenues, expenses, pricing, equipment purchasing and more.
“The data in Profiles of Success supports the idea that club operators have found a way to successfully grow their businesses, while at the same time maintaining their expenses,” said Kathleen Rollauer, IHRSA's senior manager of research.
In 2004, the average IHRSA member club reported total revenues of $2.17 million, a 4.5 percent increase over the previous year. Clubs increased their earnings (EBITDA) by 8.6 percentage points from 8.0 percent of total revenues in 2003 to 16.6 percent of total revenues in 2004. Overall, industry revenue jumped to $14.8 billion in 2004 from $14.1 billion in 2003.
In 2004, industry growth was fueled by an increase in both members and clubs. The number of health club members in the U.S. grew by 4.8 percent over the previous year to 41.3 million and an additional 25.4 million Americans used health clubs as non-members. The number of health clubs in the U.S. grew 14 percent over the previous year to 26,830 clubs as of January 2005.
“The data in Profiles of Success suggests that club operators are increasingly focusing their operations on retention - both of members and staff - and reinvestment - both in facilities redevelopment and professional development,” continued Rollauer, “and those that do have experienced great success.”
In 2004, clubs reported that they reinvested approximately 4 percent of their total revenues back into the club, improvements that resonated with their members. Clubs that reinvested reported a 69 percent member retention ratio.
Making a commitment to improve and retain staff, clubs increased their professional development spending by 48.9 percent over last year. In addition, clubs maintained their largest expense, club payroll, despite increases in health care costs.
“Club operators seem to recognize the tangible benefits, such as low staff turnover, from providing competitive salaries and advanced job training,” continued Rollauer. “Attempts to retain and educate quality staff add value to the club member's experience, helping to keep member retention high.”
The 2005 edition of Profiles of Success, as well as additional publications, including IHRSA's 2005 Global Report on the State of the Health Club Industry and IHRSA's Guide to Membership Retention can be purchased at www.ihrsastore.com or by contacting IHRSA at (800) 228-4772. IHRSA members can purchase a print copy of Profiles of Success for $240 (U.S.) or $215 (U.S.) for a PDF version. Non-members can purchase the publication for $550 (U.S.) print or $525 (U.S.) for the PDF.
About Profiles of Success
This report is a joint effort between IHRSA and Industry Insights, Inc. This study is based upon a detailed eight-page survey of IHRSA member clubs in the U.S. and Canada. A total of 196 IHRSA member companies representing approximately 1,000 clubs completed the survey from March - April 2005.
About Industry Insights
Based in Columbus, Ohio, Industry Insights has been in business since 1980 and specializes in conducting industry performance research for industry trade associations and professional organizations. For the purposes of this study, Industry Insights consulted on survey development, and managed returned surveys, data entry, data cleaning, and data processing.
About IHRSA
The International Health, Racquet & Sportsclub Association (IHRSA) is proud to celebrate its 25th anniversary in 2005-2006. Over the past quarter of a century, the not-for-profit association has established itself as the voice of quality and innovation for the global health, racquet, and sportsclub industry representing over 6,500 clubs in 67 countries, along with over 600 industry suppliers.
As it looks to the future, IHRSA is committed to taking a leadership role in advancing physical activity, which is critical to America's health and the battle against obesity and disease. IHRSA supports effective national initiatives to promote more active lifestyles and is working to pass laws that will help affect societal changes toward a more fit America.
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