As the economy rebounds, clubs are moving into an area of distinct opportunity, and, for the first time in a long time, some are getting the sense that better days are ahead for the industry. NCA’s most recent planning survey focused on the impact the economy has had on private clubs throughout the country. Eighty-four percent of clubs surveyed reported that the quality of their membership services continues to be very healthy in 2012. Accordingly, clubs are now looking to make capital improvements that can make members feel that their club membership is more valuable than ever.
As in years past, preventing attrition is a prime concern for many private clubs since it’s both easier and more cost-effective to retain the members that clubs have, rather than finding new ones. Fortunately, with the exception of golf, which was relatively flat, participation in all club programs seems to have increased at the majority of clubs in the past year—which is a good indicator of high levels of member engagement.
Facility Improvements
As clubs look towards the future, many recognize that maintaining updated facilities that are relevant to member needs is a key element of increasing member use of the club. With the family-focused, health-conscious outlook of the next generation of club members, this often means investing in childcare and play areas, casual dining venues, pool areas, and health and fitness facilities. According to a recent survey by McMahon, when members across the country were asked to rate the adequacy of their clubs’ facilities, the pool, health and fitness, and babysitting facilities were consistently rated as less than adequate for member needs.
In NCA’s 2010 Trends & Issues, we reported that 47 percent of clubs were deferring all facility improvements but the absolute essentials until the economy improved. Now, just two years later, that number is down to 16 percent. In that same vein, clubs across the country are returning to their capital improvement plans, with 39 percent of clubs intending to increase their capital expenditures on facility improvements in 2012.
According to another report by McGladrey, 2012 Florida Trends in Private Clubs, Florida clubs are increasing their capital improvements per member by $500 year-over-year to an average level of $2,100. Though city and athletic clubs expect to both spend more and proceed with more capital improvement projects than their golf or country club counterparts, spending estimates are, on average, increasing across the country for the upcoming year.
Post-recession club members and prospects are looking for value in their memberships, especially in terms of unique, personalized experiences and value-added services. Club that offering expanded dining choices, distinctive activities, and health and fitness options—and the new and updated facilities that go along with those expanded offerings—show members the value of their membership investment.
For more information on the latest trends in the private club industry, stay tuned for NCA’s 2012 Trends & Issues: A Private Club Perspective.
Jackie Abrams is NCA’s communications manager.