Health Clubs Look To Pump Up Profits In New Year

“It's a new year, and likely most Americans are on the second day of trying to make good on classic New Year's resolutions such as quitting smoking, staying organized and, of course, losing weight. The traditional winter weight loss goal has continually proven to lead to big business for health clubs in Maryland and across the country. ‘It's clearly a busy time,’ said Tim Rhode, owner of the Maryland Athletic Club, with locations in Baltimore, Hunt Valley and Timonium. ‘We see our utilization increase by about 50 percent from December to January.’ January is a always the busiest month of the year for health clubs, with about a million people joining nationwide -- 50 percent more than during any other month of the year -- according to the International Health, Racquet & Sportclub Association. About 18 percent of all Maryland residents are members of a health club. Contrary to the belief that club attendance slips after a few weeks after New Year's Day, Rhode said attendance remains steady until about May and the beginning of summer. ‘The biggest challenge is making sure the members see results,’ Rhode said. For about $100 a month, MAC members can work out in an upscale club with five exercise studios, 10,000 square feet of exercise equipment and four pools. At Gold's Gym, members can get in shape using a broad range of cardio and weight equipment for between $30 and $40 a month. Simpler gyms such as Planet Fitness provide members the fitness basics for as low as $10 a month. Some clubs offer limited trial memberships. The industry appears to be expanding at a time when consumers are pulling back on their discretionary spending. Life Time Fitness, with 85 locations in 19 states, including gyms in Columbia and Rockville, in October said third-quarter 2008 revenues grew 17 percent to $199 million and income jumped 18 percent to $21.6 million. ‘We also saw an increase in annual membership growth from the second quarter to third quarter, indicating consumer demand for our facilities and services in spite of challenging economic conditions,’ Life Time Fitness Chief Executive Officer Bahram Akradi said in a statement. Rhode said sales at the MAC were about even with last year. ‘We're happy with that. Time will tell what happens in 2009. There's certainly a lot of doom and gloom out there, but we're seeing that people don't really consider health and wellness a discretionary expense -- it's a priority.’”

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