Sweat Equity According to the International, Health, Racquet & Sportsclub Association (IHRSA), 2015 industry revenues increased 6.1%, to $25.8 billion.

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Presentation transcript:

Sweat Equity According to the International, Health, Racquet & Sportsclub Association (IHRSA), 2015 industry revenues increased 6.1%, to $25.8 billion. More than 64 million Americans utilized the services of a health club at least once during 2015, the largest total since 1987, and individual members, or those who visited an average of 104 days, increased 2.2%, to 55.3 million. The IHRSA also reported that 2015 global membership was 151.5 million, which generated $81.0 billion in global industry revenues. Germany was second to the US in the number of members, 9.5 million, and revenues, $5.4 billion.

A Stronger Core According to IHRSA research, the number of health & fitness clubs in the US increased 4.8%, or a total of 36,180. In addition, an average of 16% of health club members have memberships at more than one club. From the latest data available, the IHRSA reported that 15.0% of health club members and 15.4% of non-members engaged in at least one personal training session during 2014, an 11% increase over 2013. The top 5 US for-profit health & fitness clubs remained the same for 2015: LA Fitness, 24 Hour Fitness, Life Time Fitness, ClubCorp and Equinox; however, ClubCorp moved to the 4th position replacing Equinox, which was #5.

There’s a Need, Indeed According to the 2016 Physical Activity Council Report, 56% of Americans 6 years of age and older participated in at least one high caloric burning activity during 2015. The share of Americans 6 years of age and younger who were considered inactive during 2015 was 27.7 million, compared to 28.3 million for 2014. The total inactive Americans decreased slightly to 81.6 million, but still a huge market for health & fitness clubs. Fitness sports continued to have the highest share of participation of all physical activities measured, at 61.5%; followed by outdoor sports, 48.4%; individual sports, 34.8%; team sports, 23.1%; and water sports, 14.2%.

Fitness Fanatics 2015–2016 data from The Media Audit’s cross-section of markets, representing almost 48 million Americans, reveal that 23.3% of those Americans exercised 12 times+ at a health club during the past 12 months. Somewhat surprising is that the share of adults 18–44, at 53.4%, is not that much larger than adults, 45+, at 46.6%, and those 55–64 within that older age range had the largest share, at 13.5%. The data is very clear, however, that Americans in this category are overwhelming high income – 63.3% $75,000+, and 43%, $75,000–$150,000 – and highly educated – 61.8% with a college degree or advanced degree.

Expanded Offerings Many health & fitness clubs are discovering ancillary revenue streams, including an outdoors obstacle course, partnering with a local meal delivery service to promote and provide members with nutritious meals and “house parties” at a member’s home. 2016 IHRSA research found that cardio equipment has the largest share of space allocation, at 20.1%, in the clubs surveyed; followed by traditional strength, 15.7%; group exercise, 12.1%; and functional training, 8.2%. According to the J.D. Power 2016 Health and Fitness Center Satisfaction Report, members’ satisfaction with their center increased substantially from a score of 813 for 2015 to a score of 826 for 2016 (on a 1,000-point scale).

Advertising Strategies Based on the data on the Profiler’s Additional Analysis page, a club could provide a free, noon and onsite stretching session at a business with many clerical/sales personnel, with the business paying the trainer and participants receiving discounted intro memberships. Partnering with a local meal delivery service is certainly a good promotion for a club. In a TV commercial, the club owner could explain the importance of nutrition and offer a free delivery after 5 paid deliveries. Clubs can use the chart at the bottom of page 2 of the Profiler to promote an evening or session for each generation and provide them with an introductory program highlighting each of the fitness activities that that generation typically prefers.

New Media Strategies Advertising on your station’s Website is another channel for a club to promote its partnership with a local meal delivery service. The ad could include a live link to the delivery service’s ordering page, with featured meals specially selected by the club. Social media polls or surveys would help a club understand what members are trying to achieve and what programs and amenities they would like at the club. All participants could be offered a free, intro personal training session to promote that service. A live-streaming event, using Periscope or any of the other streaming apps, is perfect for a health & fitness clubs. The event could highlight equipment and training and exercise sessions and the benefits of each, plus testimonials from members during a workout.