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A Muscled Market According to the International, Health, Racquet & Sportsclub Association (IHRSA), 2016 industry revenues increased 7.2%, to $27.6.

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Presentation on theme: "A Muscled Market According to the International, Health, Racquet & Sportsclub Association (IHRSA), 2016 industry revenues increased 7.2%, to $27.6."— Presentation transcript:

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2 A Muscled Market According to the International, Health, Racquet & Sportsclub Association (IHRSA), 2016 industry revenues increased 7.2%, to $27.6 billion, increasing faster than for A record-setting total of million Americans exercised in a health club during 2016; million of them as members, an increase of 3.6% from 2015, and 9.3 million as guests, an increase of 6.9% from 2015. Almost 20% of Americans aged 6 and older belong to at least one health club, and the average member visited his or her club 106 times during 2016, an all-time high.

3 Club Confidential According to IHRSA research, the number of health & fitness clubs in the US increased 1.0%, to a total of 36,540. In addition, the average retention rate of health club members is 71.4%. For additional revenue, health clubs are switching focus from personal training (used by 12% of members during 2015) to small- group training (used by 31% of members during 2015). Most (60%) are women, averaging 29 sessions/year at $32 each. The top three for-profit US health & fitness club chains, according to their 2016 revenues, were LA Fitness, Life Time Fitness and 24 Hour Fitness; however, Planet Fitness, #7, had the largest revenue increase from 2015, at 14.4%.

4 Being Physical Is Healthy
According to the 2017 Physical Activity Council Report, 52.4% of Americans 6 years of age and older participated in at least one high-caloric burning activity during 2016, a decrease from 56.1% for The share of Americans 6 years of age and older who were considered inactive during was 27.5%, compared to 27.7% for 2015; however, the percentage of Americans doing low- to medium- calorie burning activities increased to 20.1% from 16.2%. Fitness sports continued to have the highest share of participation of all physical activities measured, at 62.7%; followed by outdoor sports, 48.6%; individual sports, 34.6%; team sports, 23.6%; water sports, 13.8%; and racquet sports, 13.7%.

5 Members’ Satisfaction
According to J.D. Power, 76% of club members experienced no problems during the past year, but of those who did, it was about the equipment (59%) or locker rooms (55%). Members chose their health club based on location (64%), liking the facility (47%) and the facility’s availability and amenities (40%). More than three quarters (77%) used cardio equipment, 44% attended mind-and-body classes and 38% attended aerobics classes.

6 Membership Insights According to the 2017 IHRSA Health Club Consumer Report, education and income are the biggest predictors of health club membership. Clubs have traditionally attracted primarily professionals and less price- sensitive consumers. Nearly one-quarter of health club members are 55 and older, and membership among Baby Boomers and older people has increased by 5% since Attracting more seniors and budget-conscious members are potential growth areas. Another potential growth area is the 27% of inactive Americans; however, a study from the National Bureau of Economic Research found that participants didn’t exercise more, even when offered cash, due to lack of time, motivation and realistic expectations.

7 An Industry Always on the Move
Stability training is a growing trend, focused on preventing falls and injuries and improving strength, power and balance. It is well suited for older and sedentary people. ZUU is a high-intensity workout using animal-like movements. It develops mobility, agility, flexibility, cardio endurance and stronger muscles, joints, tendons and ligaments. Reaxing conditions the body to react safely and adjust to the unexpected. Slacklining is walking or balancing on narrow, flexible webbing that is anchored at each end. It builds core strength, balance and coordination and improves posture.

8 Advertising Strategies
To attract Baby Boomers, focus your advertising message on the warmth, helpfulness and knowledge of your facility’s staff as well as water aerobics, stability training and recumbent stationary bikes. Emphasize the camaraderie of participating in small-group training classes to appeal to Millennial and Gen X women. To attract people who are not currently active because of time constraints, offer virtual group training classes for home participation. Offer virtual personal training where trainers coach members on the phone/app and analyze member data from fitness wearable devices.

9 New Media Strategies Utilize Facebook ads to target people in your area dissatisfied with their current health club or looking to be fit or lose weight. Advertise in mobile phone apps using mobile geotargeting. Distribute digital badges to members when they reach their goals. Members can share the badges on their social media profiles with embedded links to your club or gym.

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