Global Fitness

Industry Overview

Jay M. Ablondi
Executive Vice President, IHRSA
 About IHRSA
International Health, Racquet &
Sportsclub Association
The Global Health Club
Industry Trade Association
Non-Profit in 33rd year
HQ in Boston, MA USA
10,000+ club & industry
supplier members;
5,300+ members outside USA
CBI magazine, 78 Countries
 IHRSA Global Report 2013
Key Findings:
Industry continues to grow
Strong franchise growth
Growth in low cost clubs &
small studios (PT, cardio, etc.)
U.S. Growth: Non-Member
usage, pay for play
Latin America strongest
Europe recovering and
competition intensifying
Asia Pacific growth
2014 outlook positive
Global Market Share of Clubs
Africa & Middle
East
1%

Europe
31%
Latin America
30%

Asia-Pacific
US & Canada 14%
24%
Global Market Share of Revenue
Latin America Africa & Middle
7% East
<1%

Europe
US & Canada 44%
31%

Asia-Pacific
18%
Global Market Share of Members
Africa &
Middle East
2%

Latin
America
10%
Europe
33%

US & Canada
42%
Asia-Pacific
13%
 Global Fitness
# of Clubs +4.7%

Revenue +4.0%

Membership +1.8%

vs. Last Year

 Global Obesity Rates
40
35
30
25
20
15 Obese
10 Overweight
5
0

Source: OECD Factbook 2012

Global Fitness
Global Fitness
Global Fitness
 IHRSA European Health Club
Report
Key Findings:

European Club Industry continues

to grow despite economy
17 Countries suffered economic
decline
Germany strongest, U.K. saw
growth in low cost segment
Value Added Tax (VAT) impact on
fitness (e.g. Portugal hit hard)
Poland: Pay for Play popular
High rates of inactivity and obesity
Similar Trends to Asia: Functional
Training, Fun Group Ex and Yoga
Europe
Europe
Europe
 U.S. Health Club Members
(millions)
51.4
50.1 50.2

45.5 45.4

2008 2009 2010 2011 2012

U.S. Health Club Consumers

Average Monthly Dues

$50
$49

$47

$45
$43

2008 2009 2010 2011 2012

 Average U.S. Health Club Attendance
Members and Consumers

101 102 102

98 99

91 91
89
87 88

2008 2009 2010 2011 2012

Avg. attendance HC members Avg. attendance HC consumers
Percentage of Individuals Engaging in at Least
One Personal Training Session in Past Year

U.S. Health Club Consumers

21%
19% 19%
18% 17% 17%

All Individuals Male Female

HC Members Non-HC Members

 Personal Training Usage
Members vs. Non-Members

U.S. Health Club Consumers

48%
40%

29%
26%
21%
14% 13%
11%

1 - 3x 4 - 10x 11 - 20x >20x

Members Non-Members
 Additional Research: USA

Physical Activity Council Topline Report

showed that fitness activities remain popular
as more than 60% of Americans participated
in fitness sports in 2012.
5th consecutive year in which at least 60% of
Americans engaged in fitness activities.
 Additional Research: USA
FINDINGS
Staying healthy, flexible, Messaging and programs
looking better, and
maintaining strength are
top personal goals.
Women likely to have
personal goals of feeling
better and losing weight.
Men likely to have goals
of maintaining weight and
building muscle.
OPPORTUNITIES
focused on wellness.
Address a range of goals
by gender: weight loss &
maintenance, muscular
development, and overall
health/fitness.
Ensure variety of small
group training and group
exercise programming to
address specific goals.
 FINDINGS OPPORTUNITIES

Expense is, by far, Offering new member

the most common
trials and range of plans
reason for not
joining a health club. for different budgets.
Many believed that Ensure that new
they would feel out members feel welcome
of place at a health and understand how to
club especially navigate the clubs
women. offerings.
 Measuring Customer Feedback

The Net Promoter Score (NPS)

The Ultimate Question:

On a scale of 0-10, How likely is it

you would recommend ______
to a friend or colleague?
 How likely is it that you would
recommend this gym?

0 = Not at all Likely 10 = Extremely Likely

EXAMPLE: How a NPS is calculated from
960 customer responses
The Retention People (TRP)
NPS Survey (U.K.)
2011 2013

More than 150,700 consumer responses

More than 500 club locations
Highest individual site score of +70
Lowest individual site score of -27!

U.K. Benchmark NPS = +27

 IHRSA/TRP North American
NPS Survey 2013
More than 43,000 consumer responses
More than 230 club locations

Highest individual site score of +79

Lowest individual site score of -49!

North American Benchmark

NPS = +43
 How to utilize NPS

Make operational changes based on

member feedback
Improve staff training re: problem
areas & customer service
Learn from NPS case studies
Measure NPS at least once a year
Use it to incentivize staff goals.
IHRSA Asia Pacific 2013 Survey
Key Findings

Biggest Challenges
Asia Pacific:
Good People
Competition
Operating Costs
Club Culture & Image / Experience
IHRSA Asia Pacific 2013 Survey
Key Findings
Hottest Trends Today?
Asia Pacific:
Social Media
Functional Training
Group Ex / Small Group Training
Smaller Footprints, Longer Hours
On-line Health Info for Consumers
FUTURE IHRSA EVENTS
March 12 - 15
IHRSA 2014
33rd Annual International
Convention & Trade Show
San Diego, California USA
August 5 8
The IHRSA Institute:
Executive Education for
Club Professionals
University of North Carolina,
USA
August 28 30
15th Annual IHRSA / Fitness
Brasil Latin American
Conference & Trade Show
So Paulo, Brazil
October 16 19
14th Annual IHRSA European Congress
Amsterdam, The Netherlands
October 22-23
IHRSA Mercado Fitness Mexico City
Conference & Trade Show
Santa Fe, Mexico
November 18-21
4th Annual ChinaFit / IHRSA
China Management Forum
Guangzhou, China
March 11-14, 2015
IHRSA 2015
34th Annual International
Convention & Trade Show
Los Angeles, California. USA
 Google translation

VISIT IHRSA.ORG
Available in June 2014

ihrsa.org/research-reports/
Read: Ihrsa.org/cbidigital Subscribe: cbi@ihrsa.org
IHRSA CONTACTS:

Jay Ablondi: jma@ihrsa.org

IHRSA EVP Global Products
Based in Boston, MA USA

John Holsinger: jwh@ihrsa.org

IHRSA Director, Asia-Pacific
Based in Sydney, Australia

Melissa Rodriguez: mr@ihrsa.org

IHRSA Senior Research Manager
Based in Boston, MA USA

Thank You!