Industry Facts

What is the average length of membership at a health club?
The average number of years a member stays at a health club is 4.7 years. (IHRSA/ASD 2005 Health Club Trend Report)

In regards to travel time, how long will a person travel to commute to a club?
In suburban markets, in which the automobile is the primary means of commuting to a club, the primary trading area for clubs in competitive markets extends no more than 10-12 minutes travel time from the club, which translates into no more than five miles from the club site. (IHRSA's Guide to the Health Club Industry for Lenders & Investors)

All of the below information has been obtained from IHRSA (International Health, Racquet and Sports club Association). IHRSA is a trade organization serving the health and fitness industry. Their mission is to grow, protect and promote the health and fitness industry, and to provide its members with benefits that will help them become more successful. For more information on IHRSA, please visit www.ihrsa.org.

It has become a convenience business. Because workout frequency is crucial to reaping the rewards of regular exercise, clubs need to be convenient. This means that they need to be as close as possible either to where members work or to where they live. An axiom of this business is "Closer is always better."

It is difficult to overstate the important of convenience. For most consumers, convenience trumps price. A health club member will pay $10 to $50 more per month to belong to a club that is convenient as opposed to one that may be less expensive, but is also less convenient.

Because convenience is such a fundamental factor in club success, site selection is of paramount importance. Most successful clubs are found at the center of upscale marketplaces that have both residential and commercial components.

Convenience implies more than proximity. It also entails accessibility. A club can be-as the crow flies-incredibly close, yet, at the same time, inaccessible. Many factors contribute to inaccessibility, including traffic patterns, traffic jams, signage problems, the lack of parking, safety and security issues, dangerous access or egress, etc.

Trend Insight
Have you ever wondered if the trends you are seeing in your club are happening across the country? IHRSA's Quarterly Trend Report tracks the predominant trends affecting the industry as a whole. This quarter's trend report looks at:

BOSTON-April 25, 2007-Health club membership in the United States increased by more than three percent last year, from 41.3 million members (over the age of six) in 2005 to 42.7 million in 2006, while the total number of Americans who visited or belonged to a health club increased by more than six percent from 64.9 million people (over the age of six) in 2005 to 69.3 million in 2006, according to the International Health, Racquet & Sportsclub Association (IHRSA). This growth in health club membership represents an increase of more than twenty-five percent in just five years, while growth in health club patronage represents an increase of nearly twenty percent.

The Scope of the US Health Club Industry

• Number of US Clubs: 29,069 (as of 01/06)
• Number of US Health Club Members: 41.3 million (as of 01/06)
• Number of US IHRSA Member Clubs: 4,200 (as of 01/06)
• 2005 Total US Industry Revenues: $15.9 billion

The industry enjoys significant landlord and equipment financing. Because this is a fixed cost business, landlord financing can be a key success factor. Landlords who are looking to fill new retail malls and/or commercial buildings may be especially interested in health clubs as anchor tenants, due to the daily off-hours traffic clubs generate for retail areas and the amenity value of the club to other businesses.