“Ancillary revenue.” It’s not a particularly exciting term, but if you’re a health club owner, just the thought of it can raise your heart rate well beyond your training zone.
And for good reason:
“Generally speaking, ancillary services account for a quarter of a club’s total revenues,” said Melissa Rodriguez, IHRSA’s senior research manager. “So operators need to be creative in terms of coming up with new nondues revenue services, and getting members—and nonmembers—to make use of them.”
It’s not a new notion for IHRSA clubs, and, especially in recent years, a fair number have been using them quite successfully. “Many have managed to boost their profitability to pre-recession levels—or even higher—by tapping nondues revenue sources.”
What have they been up to? Club Business International checked in with a host of operators, consultants, and industry suppliers to find out.