Fitness Clubs Feeling the Pinch as Members Cut Back

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Hardbodies News 09 February, 2009 04:15:00

Danielle training at XSport Fitness in Chicago. 24-hour gyms have recently outperformed their counterparts.

The health club industry, with $18.5 billion in revenues reported in 2007, has been almost recession-proof in the past. But many health clubs have experienced a drop in membership over the past year because many consumers don't have the disposable income to spend.

February 9, 2009

Maria Ryals attends her kick-boxing class regularly, no matter how hectic her work schedule becomes each week.

"This is a great stress reliever," said Ryals, of Davie, explaining why she chooses to keep her membership at the Club Florida Fit in Cooper City at a time when many consumers are pinching every penny.

Maureen Jacobs of Miramar said she visits the fitness club three times a week to stay fit. "It's worth the money," said Jacobs.

The health club industry, with $18.5 billion in revenues reported in 2007, has been almost recession-proof in the past. But many health clubs have experienced a drop in membership over the past year because many consumers don't have the disposable income to spend.

About 41.5 million Americans belonged to health clubs nationwide in 2007, the latest year for which complete statistics are available, according to the International Health, Racquet & Sportsclub Association, a trade group based in Boston. For the first time in many years, the association is not expecting a spike in membership numbers for 2008, which have yet to be tallied.

"We certainly hope consumers continue to use their health clubs during these economic uncertain times," said Rosemary Lavery, a spokeswoman for IHRSA, noting that many medium and small clubs are struggling.

Local membership down

In South Florida, many club operators said membership numbers have dropped slightly in the past year, while some clubs closed their doors because they couldn't stay afloat. A total of 369 clubs statewide went out of business in 2008 — 41 in Broward County and 24 in Palm Beach County — up from 339 in 2007, according to the Florida Department of Agriculture and Consumer Services.

Better Business Bureau officials said complaints — mostly relating to billing issues, contract disputes and fitness clubs that closed or changed management shortly after a member joined — have jumped 90 percent in the past five years.

"The trends we're seeing in complaints against fitness clubs tell us that consumers need to read the fine print on the contract before they sign," said William White, president for the Bureau of Southeast Florida and the Caribbean. "[They need to] keep a close eye on their bank statements to make sure they are not getting billed more than they should."

Last year, consumers filed 604 complaints with the Department of Consumer Services —125 in Broward County and 65 in Palm Beach County — for poor service, billing refund disputes and cancellations not being honored.

Know your rights

Consumer advocates said it's important to know your rights before you sign a contract and avoid deals that ask for a long-term commitment, particularly in these difficult economic times. State regulations provide some protections for consumers especially if a gym goes out of business, changes locations or the member can't use the facilities for medical reasons.

For those with long-term contracts, club operators that go out of businessmust void the contract, refund a member's money or provide a way to use another facility of equal quality located within five miles. Every January fitness clubs get a membership boost as New Year's resolutions are made and corporate wellness programs kick in. Many South Florida club operators said they are offering special promotions and discounts to gain new members and keep current members.

Club promotions

Karen Sylvester, manager of Power House Gym Inc. in West Palm Beach, said the health club, which offers monthly memberships that range from $35 up to $54.95, is raffling off a cruise trip to the Caribbean, a laptop and a flat screen TV as part of a promotion that ends in March.

"We had our ups and down, but we remain competitive because we are clean and offer a good service," Sylvester said, noting the 3,000-square-feet facilityoffersfree child care, tanning and sauna facilities. "Some people feel it's a luxury, and others find it a way to relieve their stress."

Bobby Dunn, manager of Club Florida Fit in Cooper City, said the health club added a women's kick-boxing class and martial arts programs last year. The fitness club has expanded since it changed ownership nine years ago and offers free child care and personal trainers.

"We do a lot of outside promotion," Dunn said, noting that monthly memberships vary from $14 to $34. "You don't need to give any money down and can cancel any time you want with a 30-day notice. We are flexible about that."

Rosa Santana, owner of Yogarosa in Hallandale Beach, said she's seen her yoga attendance drop but she tries to make yoga accessible to clients.

"Because of the economy more people are stressed out," Santana said. "Whatever happens around the world manifests in our bodies so yoga becomes something they case use in their lives."

Source: South Florida Sun-Sentinel

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