2008 The IHRSA PROFILES OF SUCCESS The Annual Industry Data Survey of the Health and Fitness Club Industry Compiled by The International Health, Racquet & Sportsclub Association, and Industry Insights, Inc. ® IHRSA’s Industry Data Survey of the Health and Fitness Club Industry Compiled by The International Health, Racquet & Sportsclub Association, and Industry Insights, Inc. International Health, Racquet & Sportsclub Association 70 Fargo Street Boston, MA 02210 +1-617-951-0055 +1-617-951-0056 fax 800-228-4772 (U.S. & Canada) www.ihrsa.org Copyright 2008 International Health, Racquet & Sportsclub Association All rights reserved. No part of this report may be reprinted, reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, or otherwise — without the express written consent of IHRSA. The International Health, Racquet & Sportsclub Association is a non-profit trade organization serving the commercial club industry. To order copies of this report or other IHRSA publications, visit www.ihrsastore.com. CONTENTS | INTRODUCTION 3 METHODOLOGY 4 INDUSTRY IN REVIEW 6 The 2008 IHRSA INDUSTRY AT A GLANCE 10 Profiles of Success U.S. Health, Racquet, and Sportsclubs U.S. Health Club Membership is divided into three U.S. Health Club Patronage parts. To learn more U.S. Health Club “Core” Members and to order Profiles U.S. Health Club Industry Revenue in its entirety, visit U.S. Health Club Member Market Share www.ihrsastore.com. CLUB MEMBER DEMOGRAPHICS 13 Gender Age Annual Household Income Region State City CLUB MEMBER PARTICIPATION BY EQUIPMENT AND GROUP EXERCISE 19 CLUB OPERATING BENCHMARKS 22 Club Type Club Size CLUB MEMBERSHIP GROWTH & TRAFFIC 26 Club Type Club Size CLUB PRICES 29 Club Type Club Size CLUB PAYROLL AND STAFFING 31 Club Type Revenue per Full-Time Equivalents CLUB FACILITIES AND PROGRAMMING 32 Facility Reinvestment Most Commonly offered Facilities Most Commonly offered Programs 2007 INCOME STATEMENT AND BALANCE SHEET DATA 36 WORKBOOK 46 ACKNOWLEDGEMENTS | Katie Rollauer, Senior Manager, IHRSA, who served as project manager for the report, performed data analysis, and wrote this report. Melissa Rodriguez, Manager, IHRSA, who performed data analysis and contributed to this report. Greg Manns, Vice President of Industry Insights, Inc. who supervised survey development, survey execution, data management, data analysis, and contributed to this report. Richard M. Caro, Jr., President of Management Vision, Inc., who provided advice on the report. Jay Ablondi, IHRSA Vice President of Publishing HM Studios, which developed the design and layout of this report. In particular, the 138 IHRSA members who contributed their time and effort in order to complete the 2008 Industry Data Survey. INTRODUCTION | I HRSA is pleased to present the 27th edition of the annual Industry Data Survey (IDS) and the accompanying publication, Profiles of Success. As it approaches the end of its third decade, the commercial fitness club industry continues to develop and evolve in serving a public increasingly concerned with its health. The industry in Canada and the United States is a dynamic one composed of large multi-chain clubs and smaller, independently-owned studios—all seeking to improve their operations and differentiate their services to meet the needs of a changing population. A PROMISING AND DYNAMIC INDUSTRY The North American health club industry continues to hold well for future growth in the fitness club industry. Recent a solid position: more than 29,000 clubs serve 41.5 million research shows that regular physical activity enhances members, generating revenues totaling to $18.67 billion in overall quality of life, lessens the effects of aging, increases 2007. Although membership dipped by about 3% in 2007, life expectancy, helps to prevent diabetes and cardiovascular total industry revenue increased by 5%, highlighting the disease, improves mood and energy levels, and can help treat industry’s ability to encourage consumers to invest in their cancer and osteoporosis. Most recently, experts have found health through club programs such as personal training, child that intense aerobic interval training staves off metabolic care, and spa services. Membership growth over the past five syndrome, and walking on a treadmill helps improve brain years amounted to 5%, while the CAGR for industry revenues function in stroke survivors. totaled 1% during the same period. In the United States, two innovative and practical programs In recent years, new club models and demographic are under active consideration in Congress and have received segments have emerged in the fitness club industry, which broad support from numerous business and health promotion have in turn led to both market growth and fragmentation. organizations. The Workforce Health Improvement Program Multi-purpose and fitness-only clubs still thrive in the (WHIP) Act would enable employers to provide subsidies marketplace, but a diverse U.S. public has made way for to employees to enroll in fitness programs—without that niche clubs. Franchises that focus on particular market subsidy being taxed as additional income to the employee. segments have prospered in recent years, targeting, for The Personal Health Investment Today (PHIT) Act would example, women, budget-conscious consumers, and young allow taxpayers to use up to $1,000 a year from pre- exercisers. Similarly, the growing population of retirees tax accounts (similar to flexible spending accounts for calls for “soft” fitness programs, and club companies have other employee benefits) to pay for fitness clubs, YMCA responded to this market segment’s needs. memberships, or home fitness equipment. Medical research findings and public policy initiatives have encouraged people to exercise regularly, which bodes IHRSA Profiles of Success 2008 | 3 INDUSTRY DATA SURVEY | Methodology T his 2008 Profiles of Success The data and findings contained report is the result of a joint within Profiles of Success do not effort between the International present an absolute standard for any Health, Racquet & Sportsclub individual company’s performance. Association (IHRSA) and Industry Instead, the report provides a median Insights, Inc. This study is based upon financial and operating performance a detailed survey of IHRSA member metrics for several types of commercial clubs in the United States and Canada. health and sports clubs. The North Unless otherwise noted, data reflects American health club industry remains the median value for each individual very entrepreneurial, and, local market set of responses to a question. The conditions, owners’ preferences, and median represents the mid-point for unique business models may well cause a given data set: it is determined first substantial variation among performance by rank ordering a series of numerical reported in this study and what readers values (from highest to lowest) and have seen in their own business. then by selecting the value that falls Accordingly, readers should use this About Industry Insights, Inc. exactly in the middle—that is, with report more as a source of information one-half of the values above it and on how others have performed than as Based in Columbus, OH, Industry one-half below. Unlike the mean—the a set of explicit targets. Insights has been in business since 1980 arithmetic average—the median is less We at IHRSA welcome your comments and specializes in conducting industry likely to be distorted by a small number and questions on the methodology, data performance research for industry trade of unusually high or low values that collection, and analysis in this report associations and professional organizations. may occur in a sample. Each median and would be pleased to hear from you. For the purposes of this study, Industry and mean was independently identified Please contact firstname.lastname@example.org with for each individual set or subset of your feedback. Insights consulted on survey development, responses to a given question. As a In an effort to allow comparison of and managed returned surveys, data entry, result, component values often do not financial data across companies and data cleaning, and data processing. total 100%. segments, questions were adapted to To provide additional insight into conform to the Uniform System of the data, the 2008 edition of Profiles Accounts for the Health, Racquet, and of Success presents the middle Sportsclub Industry. range for values of some important Data attributed to American Sports measurements. This middle range Data was published in the IHRSA/ consists of the span of the middle 50% American Sports Data Health Club of the reported values—that is, the span Trend Report, which is sponsored by of the values that did not fall within IHRSA. This data is derived from a the lowest quartile (the bottom 25% survey of 30,000 U.S. households, and of all values) and the highest quartile represents demographic findings for (the top 25% of all values). Americans over the age of six. Smallest “Lower Figure” Typical “Upper Figure” Largest Number Reported Number Reported Lower 25% of Middle 50% of Reported Figures Upper 25% of Reported Figures (or Middle Range) Reported Figures Median 4 | IHRSA Profiles of Success 2008 INDUSTRY DATA SURVEY | Sample Characteristics SAMPLE CHARACTERISTICS AND Figure 1: Club Type Figure 2: Company Type DEFINITION OF CLUB TYPES A total of 138 IHRSA member companies completed the comprehensive Industry Data Survey (IDS) on which this report is based. They came from the following categories: 68% 32% 68% 32% Multipurpose (68% of respondents): These clubs have fitness facilities— either an aerobics/dance exercise studio, and/or fitness center—and typically racquet sport courts. They may, or may not, have additional facilities, such as a gymnasium, swimming pool, etc. ! Multipurpose Clubs ! Individual Facility Fitness-only (32% of respondents): ! Fitness-only Clubs ! Multi-club Operation These clubs have fitness facilities—either an aerobics/dance exercise studio, and/ or fitness center—but they do not have racquet sport courts. They may, or may Figure 3: Club Size not, have additional facilities, such as a gymnasium, swimming pool, etc. Multi-club Operation (32% of respondents): 12% These clubs may be multipurpose, fitness-only, or tennis-only clubs, but 15% 40% they share a common ownership or management with at least one other club. 34% ! Less than 20,000 sq. ft. ! 20,000 to 34,999 sq. ft. ! 35,000 to 59,999 sq. ft. ! 60,000 sq. ft. or more Table 1: Multi-club Company Growth (median number of clubs per company) Year No. of Clubs December: 1990 1 December: 1995 2 December: 2000 2 December: 2005 3 December: 2006 4 December: 2007 4 IHRSA Profiles of Success 2008 | 5 INDUSTRY IN REVIEW | INDUSTRY CLIMATE Another notable leading player, Gold’s Gym International, has come a long way from its beginning in bodybuilding Leading Club Companies products and services during the mid-1960s. In response to Despite flat or slow growth in total health club membership the evolving consumer market for fitness clubs, Gold’s has in recent years, several companies have maintained strong expanded its offerings to include group exercise, personal business models and developed promising new ones that training, spinning, Pilates, and yoga. Gold’s strategy to diver- have fueled growth. In many respects, these organizations are sify services while staying true to its weight-lifting roots has industry leaders that other club developers can consider as paid off: after 40 years, Gold’s Gym is one of the leading com- they seek to develop successful, growing companies. Listed panies in memberships with 3 million members. Reporting below are the top North American club companies in IHRSA’s revenues exceeding $120 million in 2006, the Texas-based Global 25, ranked by revenue along with their market niches.1 company is also one of the early pioneers of the fitness club From Club Corp’s focus on fitness and country club man- franchise model, others of which will be examined later on in agement to Fitness Together’s emphasis on private training, this report. these leading club companies portray the dynamic nature of A noteworthy forerunner to the franchise model in the fitness industry leaders. Industry forerunners are paving the budget sector is Planet Fitness, which serves more than one way for growth with solid business models, sound operational million members with a very basic fitness-only model. With methods, and a clear focus on their respective target markets. monthly dues as low as $10 per month, members have access Other companies warrant mention among leading players to essential cardio-training and strength-training equipment for their innovative and nimble business strategies. Once a for a basic workout. This model has worked well for Planet fitness-only company, 24 Hour Fitness has emerged as one Fitness, as it reported $48.8 million in revenue in 2007. of the top U.S. fitness chains with a reported $1.3 billion in revenue during 2006. The company has fueled its growth by PUBLICLY TRADED FIRMS expanding its club portfolio to include six models, each with In the United States, there are three publicly traded fit- a distinct specialization in fitness-only, multi-purpose, cir- ness companies: LifeTime Fitness (NYSE:LTM), Town cuit-training, and spa services. In the past 15 years, 24 Hour Sports International (NASDAQ:CLUB), and Health Fitness Fitness has grown from a 35-club California chain to a fitness Corporation (OTC: HFIC). empire of 425 domestic and international locations. Since 2000, LifeTime Fitness has expanded operations from Table 2: Leading Club Companies the central states of the U.S. into the Midwest, Southwest, the Mid-Atlantic and the South. With four distinctive 2Club Company Niche Revenue (2007) club models, LifeTime Fitness has more than 70 multi-purpose clubs, Curves Women-only franchise $2 billion and in 2007, the company generated Club Corp Fitness center/golf and country club $950 million over $656 million in revenue and management served nearly 500,000 members. LifeTime Fitness Multi-purpose, multi-chain clubs $869 million Similarly, Town Sports International (TSI) has grown from Town Sports Urban/suburban fitness-only clubs $473 million an 11-club operation in 1989 to International (TSI) nearly 150 units throughout New Bally Total Fitness Fitness-only, multi-chain $469 million England, the Mid-Atlantic, and the GoodLife Fitness Fitness-only clubs with corporate $167 million South. TSI sales were $472 million wellness component in 2007; membership has grown from 42,000 in 1993 to 486,000 Millennium Upscale fitness-only clubs with $112 million in 2007. Partners Sports spa services Also publicly traded, albeit with Club Co. a less traditional business model, Lifestyle Family Family-oriented fitness-only clubs $101 million Health Fitness Corporation manages Fitness more than 400 clubs with corpo- Western Regional multi-purpose club chain $97 million rate fitness, health assessment, and Athletic Clubs screening programs and services. Founded in 1993, Health Fitness is Spectrum Clubs, Inc. Luxurious, regional fitness-only clubs $94 million a leader in corporate fitness man- Fitness Together Personal training only franchise $92 million agement, having served 225,000 Franchise Corp. members and generated $70 million in sales in 2007. 1 IHRSA’s Global 25 provides basic, unaudited information on some leading club companies as of December 31, 2007. Several companies that should appear on this list are not mentioned because they did not participate in or provide information in time for Club Business International’s (CBI) deadline for IHRSA’s Global 25 feature. 6 | IHRSA Profiles of Success 2008 INDUSTRY IN REVIEW | EMERGING FRANCHISES Leading the budget club sector are Snap Fitness and Anytime Fitness, franchises with 626 and 608 units, respectively. Open The mid-90s and onward spurred on the growth of fran- 24-hours a day, Snap Fitness and Anytime Fitness cater to the chise models led by Curves, the circuit training operation consumer looking for a convenient, basic workout with few frills. for women only. After a decade, several other franchises have emerged to serve demographic niches. Once the most dominant player in the women’s fitness market, Curves now MERGERS & ACQUISITIONS ACTIVITY shares the market with Contours Express, Jazzercise, and Private equity investors are attracted to fitness companies by Stroller Strides. Of these three relatively new franchise play- the top-line growth rates achieved by operators and by the pros- ers, Contours Express is the only one with a circuit-training pect of profit improvement through professional management, women-only model. Stroller Strides offers pre- and postnatal organization discipline, and operational efficiency. The follow- exercise programs for mothers, while Jazzercise delivers ing table (Table 3) gives an extract of some of the major recent total-body conditioning programs through dance for a co-ed financial transactions dating back to the beginning of 2007. population. Although women-only franchises target a market similar to that of Curves, they have yet to generate revenue HEALTH CLUB MEMBERSHIP comparable to the pioneer in the women’s fitness market, Attendance which reported revenues of $2 billion in 2007. The Blitz Total Fitness leads the men’s fitness segment Health club membership data indicates that the industry con- with more than 300 franchise locations in the United States,tinues to make firm believers out of health club patrons, as Canada, and Ireland. Based in Florida, The Blitz Total the share of health club members to total patrons has risen Fitness operates on a franchise model that offers an intensein the last decade. See Table 8; Figures 6 and 7. In 1998, 55% 20-minute circuit-training program designed for weight loss,of patrons were members, while 67% were in 2007. In 2007, strength, and overall fitness. members used the club an average of 90 days, up from 84 in 1997. In addition, the health club industry has done an excel- lent job recruiting and retaining Table 3: Recent Mergers, Acquisitions and Business Transactions core/frequent participants—those who use a club 100 or more times a year or at least twice Nature of Type of per week. This segment of heavy Date Target Bidder/Investor Buyer Transaction users increased by 137% between January 2007 Slender Lady Healthy Fitness club Merger 1990 and 2007. There are more Inspirations company than 16 million core users in the United States, approximately 39% April 2007 Six Bally Clubs in Falconhead Private Purchase/ of the total healthclub member- Toronto, Canada Capital, LLC equity firm re-branding ship population. October 2007 Alaska Club Lincolnshire Private Purchase Casual attendees, defined Management equity firm as patrons who visit a club 25 October 2007 Bally’s Total Harbinger Private Purchase or fewer times per year, grew Fitness Capital Partners equity firm 52% between 1990 and 2007. Nonetheless, neither core nor January 2008 Six Gold’s Gyms Titan Fitness Fitness Club Purchase (with total health club attendance has in Virginia Company funding secured grown substantially since 2004. from WestView The National Sporting Goods Capital Partners) Association has also shown March 2008 WAC KSL Capital Private Purchase through its own research that equity firm the number of fitness consum- March 2008 World North Castle Private Purchase ers working out at a club has Health Club Partners equity firm remained statistically the same since 2005. See Table 4. Table 4: Club Attendance from 1990-2007 Date 1990 1995 2000 2004 2005 2006 2007 Workout at a Club 20.3 22.0 24.1 31.8 34.7 34.9 33.8 at least six times per year (in millions) Source: National Sporting Goods Association Annual Sports Participation Study 2008 IHRSA Profiles of Success 2008 | 7 INDUSTRY IN REVIEW | Demographics: Gender Demographics: Geography Health club members are as diverse as the leading and emerg- City ing club companies that serve them. Women still out-number Membership penetration rates for many large cities continue men, 54% (22.5 million) to 46% (19 million), in health club to exceed the U.S. average. See Figure 19. Minneapolis and membership. See Figure 10. From 1990 to 2007, female gym Milwaukee lead all U.S. cities in penetration rates at 29.5% membership increased by 117%, while gym membership and 26.9%, respectively. In the southeastern states, Atlanta among men increased by 84%. See Figure 11. Over the past and Miami have the nation’s third and fourth highest city five years, female and male membership have achieved a penetration rates at 25.2% and 25.0%. Opportunities for club compound annual growth rate (CAGR) of 1.45% and 0.62%, and membership growth exist in Las Vegas and Sacramento respectively. Club membership among men declined nearly where only ten out of 100 residents are health club members. 5% from 2006 to 2007, while female health club membership experienced no significant change from the previous year. State and Region The Atlantic seaboard is home to the states with the highest Demographics: Age penetration rates: Connecticut, North Carolina, and Maryland. See Figure 18. In fact, eleven of the 23 states with the penetra- The adult population continues to dominate health club tion rates exceeding the U.S. average are located along the East membership. See Figure 12. Consumers between the ages coast. This coincides with penetration rates attributable to the of 18 and 54 make up two-thirds of all health club members. Northeast and South regions of the United States where a total These consumers typically used a fitness club about of 33 out of every 100 residents are members of a health club. 90 days last year. The smallest age demographic consisted of Opportunities for club growth exist in West Virginia, younger consumers of 6-11 and 12-17 years of age, who used Oklahoma, and Alabama, where the penetration rate is less the club 42 and 67 days, respectively. Consumers under 18 than half the U.S. average. In non-metropolitan areas of all make up approximately 9% of total health club membership. southern states, the penetration rate is as low as 6.7%. Non- Membership among health club patrons over the age of 55 metropolitan areas in the North Central region also have a very grew more than any other segment last year. With an average low penetration rate, at 8.4%. These areas represent markets of usage of 98 days last year, the 55+ age group has increased in opportunity for a club operator with the right business model. membership by 411% since 1990. At 7.78%, this group’s 5-year CAGR from 2003 to 2007 is low relative to the astounding long-term growth it has achieved, but in the past year alone, club membership in this age cohort increased by 16.45%. See Figure 13. Table 6: Lifestyle Segments with High Although this growth in older members may be a product of general demographic changes—by 2020 there will be an Membership Penetration Rates increase of 14 million people over the age of 65—these con- sumers have different fitness goals and exercise limitations and Lifestyle Segment Penetration Rate their needs will affect club offerings for years to come. Age: 25-44; HHI: $100,000+ 35.2% Incentives and exercise rewards such as raffles and com- plimentary merchandise are seldom of interest to this group, HHI: $150,000 33.1% which suggests that older adults are most driven by intrinsic Education: Advanced Degree 32.3% motivation such as becoming stronger and more fit so they can remain independent and healthy. See Table 5. Marital Status: Single; Income: $75,000 29.5% Geographical location: Metro with 28.5% pop. 2,000,000+; Income: $100,000 Table 5 Marital Status: Both householders 28.3% employed, no kids; Age: Each <45 Common Club Preferences of Older Adults Age: 18-34; Education: Current, 27.7% Availability of certified personal trainers full-time student Options for individual and group exercise Age: 55+; Income: $100,000+ 24.1% Safe and clean exercise environment Age: Both 45+, no kids; 23% Friendly atmosphere Income: $75,000 Convenient and accessible location Geographical location: California 22.3% residents; Age: 12-34 Affordable Gender: Female; Age: 18-34 21% Source: IHRSA/George Washington University, OLDER ADULTS’ EVALUATION OF Source: IHRSA/American Sports Data, The Health Club Trend Report 2007 HEALTH CLUB FEATURES, Spring 2008 8 | IHRSA Profiles of Success 2008 INDUSTRY IN REVIEW | Table 7: Lifestyle Segments with Low On the other hand, the lifestyle segments with the lowest penetration rates are typically composed of people who reside Membership Penetration Rates in non-urban areas, have low incomes, and are particularly young or old. The segment with the lowest penetration rate Lifestyle Segment Penetration Rate (3.8%) consists of Americans residing in rural, non-metro areas with an annual income less than $25,000. Only six out Geographical location: 3.8% of 100 people over the age of 55 who made less than $15,000 Non-metro area; HHI: <$25,000 last year were health club members. Americans between the Age: 55+; HHI: <$15,000 6.4% ages of 6-11 and residents of the non-metropolitan areas of the Geographical location: 6.7% Southern region of the United States each had a low penetra- Southern region, non-metro area tion rate of less than 7%. Less than 8% of pre-teen and high school males were members of health clubs last year. Age: 6-11 6.7% Gender: Male; Age: 12-17 7.9% CONSUMER PARTICIPATION Geographical location: 8.4% For the past two decades, health club consumers have North Central region, non-metro area used three primary pieces of fitness equipment: resistance Gender: Female; Age: 65+; 9.3% machines, treadmills, and free weights. See Figure 20. Marital Status: Unmarried Resistance machines and treadmills have been more popular for use at sports club facilities, while free weights and the Age: 12-17 9.5% treadmill have been more widely used at home. A little over a Gender: Male; Age: 65+; 10.2% decade ago, the elliptical trainer was introduced. The number Marital Status: Unmarried of users of elliptical trainers grew sevenfold from 1997 to 2007. Health club patrons consistently used cycling and Marital Status: Both Married; 10.3% rowing equipment throughout the years, although in smaller Age: <30 numbers in comparison to the top three. Age: 75+ 10.7% Unlike fitness equipment usage, group exercise participation has varied within the same time frame. From 1987 to 1997, group exercise consumers largely participated in step and high- Source: IHRSA/American Sports Data, The Health Club Trend Report 2007 and low-impact aerobics. As step and high-impact aerobics participation decreased, consumers began participating more LIFESTYLE SEGMENTS often in softer fitness programs inside and outside of fitness Examining membership rates according to demographic clubs such as yoga, Pilates, low-impact aerobics, and walking. groups, or lifestyle segments, reveals relationships between membership and household income (HHI) and membership and education level. See Tables 6 and 7. Noteworthy lifestyle segments include 35% of Americans between the ages of 25 and 44 with annual incomes exceeding $100,000 belong to a health club. Approximately one-third of Americans with household incomes of $150,000 or more belonged to a health club, and nearly one-third with advanced degrees carried health club memberships. Approximately 30% of single, unmarried Americans with annual earnings of $75,000 are health club members. Nearly three out of 10 Americans who reside in large metropolitan areas (with a population of 2,000,000 or more) and earned at least $100,000 last year were members of a health club. Below are listed the top 10 lifestyle segments in terms of health club membership. See Table 6. IHRSA Profiles of Success 2008 | 9 INDUSTRY AT A GLANCE | Figure 4: U.S. Health, Racquet, and Sportsclubs 29,069 29,357 29,636 26,830 23,497 The health club industry has remained stable in number of facilities and 2003 2004 2005 2006 2007 memberships. In 2007 the total number of Source: InfoUSA, Inc. fitness centers in the U.S. Note: Figures reflect the number of businesses listed in Yellow Page directories under industry SIC code 7991. increased by 279 to a total of 29,636 facilities. U.S. health club membership Figure 5: U.S. Club Membership (millions) continued to grow since 2003, albeit more slowly, reaching a record 42.7 million Americans in 2006. 42.7 41.5 41.3 41.3 39.4 Over the past five years, total U.S. health club membership has increased by 5.3%. 2003 2004 2005 2006 2007 Source: IHRSA/American Sports Data Health Club Trend Report Note: Survey results represent membership numbers for a broad range of facilities, including park & recreation centers, hospital fitness centers, YMCAs, college & university centers, and commercial clubs. 10 | IHRSA Profiles of Success 2008 INDUSTRY AT A GLANCE | Table 8: U.S. Health Club Patronage (millions) 2003 2004 2005 2006 2007 Health Club Members 39.4 41.3 41.3 42.7 41.5 Non-member Patrons 28 25.5 23.6 26.6 20.4 Total 67.4 66.8 64.9 69.3 61.9 Source: IHRSA/American Sports Data Health Club Trend Report. Note: Survey results represent membership numbers for a broad range of facilities, including park & recreation centers, hospital fitness centers, YMCAs, college & university centers, and commercial clubs. Health club utilization Figure 6: Growth in the Number of “Core” Members (Members who used the club 100+ days per year, in millions) continues to signal a healthy demand for the industry and 17.4 17.6 17.4 its services. 15.7 16.2 A total of 20.4 million Americans who were non-members of clubs indicated that they visited a health club in 2007. The number of “core” health club users reached an all-time high of 17.6 in 2005. 2003 2004 2005 2006 2007 Americans continue Source: IHRSA/American Sports Data Health Club Trend Report. to visit their health clubs an average of Figure 7: Health Club Attendance 90 days per year. (Average number of days per year) 91 92 90 90 90 2003 2004 2005 2006 2007 Source: IHRSA/American Sports Data Health Club Trend Report. IHRSA Profiles of Success 2008 | 11 INDUSTRY AT A GLANCE | Figure 8: U.S. Health Club Industry Revenue (billions) 18.7 17.6 15.9 14.1 14.8 Total U.S. health club industry revenues reflects the industry’s steady growth over the 2003 2004 2005 2006 2007 past decade. Source: IHRSA Estimates. The 10-year CAGR for industry revenues from 1998-2007 was 14.3%. Revenue grew by 6.25% from 2006-2007. Figure 9: Commercial Club and Miscellaneous For-Profit Club Market Share: Percentage of total U.S. health club membership 13% ! Commercial ! Not-for-profit ! Miscellaneous Commercial 47% 40% Source: IHRSA/American Sports Data Healh Club Trend Report. 12 | IHRSA Profiles of Success 2008 CLUB MEMBER DEMOGRAPHICS | by Gender Figure 10: Club Membership ! Women ! Men 46% 54% American women represent a majority Source: IHRSA/American Sports Data Health Club Trend Report. of all U.S. health club members. The 5-year CAGR for women from 2003-2007 was 1.45%. The 5-year Compound Figure 11: Club Membership by Gender (millions) Annual Growth Rate (CAGR) for men from 2003-2007 was 0.62%. 23,566 22,660 22,501 20,943 21,563 19,775 20,025 19,040 18,462 17,770 2003 2004 2005 2006 2007 Source: IHRSA/American Sports Data Health Club Trend Report. ! Women ! Men IHRSA Profiles of Success 2008 | 13 This is a sample of the 2008 Profiles of Success. The complete version includes over 50 pages of research and useful information. You can purchase the entire publication on IHRSAStore.com.
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