Iowa State University’s SoJung Lee leads study on private clubs’ vast economic impact

Professor SoJung Lee in the department of Apparel, Events and Hospitality Management is shedding new light on the immense role private clubs play in the United States economy. She recently led a first-of-its-kind study, which revealed that these clubs generated a collective $32.6 billion in revenue in 2023 and employed over half a million people.

Lee’s research, in collaboration with private club industry leaders and other faculty members, highlights the vital economic impact of these clubs, both as social hubs and major contributors to local and national economies.

Her interest in the private club industry began early in her career at Iowa State when Jim Butler, a Ph.D. student in Hospitality Management and former general manager at a Florida country club, expressed interest in studying club member behavior. This sparked Lee’s curiosity, leading her to research member behaviors from a psychological lens, understanding how club members engage with services and how group identity within clubs influences loyalty. She later established the Club Research Lab, an interdisciplinary hub where faculty, graduate students, and industry professionals collaborate on research in membership dynamics, finance, sustainability, and leadership.

Collaborating with Club Benchmarking—where Butler now serves as the CEO—Lee’s  research team helped gather critical data for the study. Club Benchmarking, a company that specializes in data-centric products and services for private clubs, provided both funding and expertise for the project.

One of the study’s key challenges was gathering accurate data on the number of clubs in the U.S. and estimating their revenue—a task that had never been done before.

“We had to collect data from scratch,” Lee said. “This required collaboration between academia and industry to create the database that revealed these numbers.”

Private clubs saw increases in membership during the COVID-19 pandemic, as more people looked to participate in outdoor activities. With the economic impact of these clubs rising, it’s increasingly important for clubs to continuously evaluate their member experiences, especially as younger generations become members and seek new experiences.

“This research is a direct response to the needs of the hospitality industry,” Lee said. “It shows how academic research can contribute to real-world solutions, providing valuable insights for clubs looking to adapt and thrive.”

The study, funded jointly by Club Benchmarking, the Club Management Association of America, and the National Club Association, will be updated with new data every two years.