Health and Fitness Clubs - US

Published by: Mintel International Group Ltd.

Published: Jun. 1, 2009 - 62 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Advertising creative

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Industry sees membership growth and revenue stabilization

Memberships hold steady in 2009 but likely to decline as contracts expire

Performance of leading national chains is mixed

Smaller footprint clubs and home fitness games gain momentum

Health clubs borrow ideas from art and entertainment

Innovations follow larger societal trends

Ad campaigns push low price points and appeal to the everyday consumer

Core demographic of 18-35 year olds pays the most and is hardest to please

Financial constraints are greatest barrier to new membership and renewal

Perception of health clubs show signs of improvement

Market Size and Forecast

Key points

Health club revenues hold ground despite slowing economy

Figure 1: Health and fitness clubs’ total revenues, at current prices, 2003-13

Figure 2: Health and fitness clubs’ total revenues, at inflation-adjusted prices, 2003-13

Membership begins to catch up to physical club expansion

Figure 3: U.S. health and fitness club membership and number of locations, 2003-08

Competitive Context

Clubs with smaller footprint growing faster

Participation in “free” sports increases

Prolonged recession favors lower-cost clubs over mid-priced

New home fitness video game targets women

Gaming for seniors

Segment Performance

Key point

Non-profit segment sees biggest gain in membership

Figure 4: Memberships in health and fitness clubs, by segment, 2006 and 2007

Market Drivers

Membership holds steady for now

Figure 5: Health club membership status, 2008 & 2009

Saturation of health club leads to highly competitive pricing

Figure 6: Number of health clubs and revenue per member, 2002-06

Initiation fees and personal training suffer most

Town Sports International

Figure 7: Revenue stream growth at town sports international, Q1 2008 & Q1 2009

Life Time Fitness

Figure 8: Revenue stream growth at Life Time Fitness, Q1 2008 & Q1 2009

Leading Companies

Key points

Leading health club chains post mixed performance

Figure 9: Sales of leading health and fitness club chains, 2006 and 2008

24 Hour Fitness targets the family value market

Two top chains enter bankruptcy

Life Time Fitness and TSI show increase membership but curb expansion plans

Brand Qualities

UFC launches gym brand

Innovation and Innovators

Group classes: Crunch spreads wings with anti-gravity yoga

Social networking: Health clubs to tweet to broader audience

Going green

Chelsea Piers announces dedication to green goals

University recreational facilities finding innovative ways to be environmentally conscious

Computerized training: Koko FitClub provides personalized fitness dashboard

Advertising and Promotion

Major ad campaigns cut back on media spend

Figure 10: Media expenditures for major health and fitness club campaigns, 2006-07

Gyms continue to compete on price points in a difficult economy

Figure 11: Bally Total Fitness: Free Enrollment, April 2009

Figure 12: Planet Fitness: One Dollar Promotion, April 2009

Gyms seek to inspire the ordinary consumer

Figure 13: 24 Hour Fitness: Ali Vincent Testimonial, January 2009

Figure 14: Gold’s Gym: Rowing Off Calories, March 2009

Female-focused concepts push strength and confidence

Figure 15: Women’s Workout World, January 2009

Local advertising offers new approaches

Figure 16: American Family Fitness Centers: Son Has Cancer, January 2009

Figure 17: OZ Fitness: Free Groceries, March 2009

Health Club Usage Trends

Key points

Private club penetration increases among under-45s

Figure 18: Incidence of exercise and private health club usage, by age, May 2006-September 2008

Membership holds steady from a year ago but new memberships slowing

Figure 19: Health club membership status, 2008 & 2009

Respondents 18-34 remain the core demographic but are more difficult to retain

Figure 20: Health club membership status, by age, March 2009

Household income remains the largest determining factor of membership

Figure 21: Health club membership status, by HH income, March 2009

Membership Types

Key points

Month-to-month memberships decline as recession favors long-term contracts

Figure 22: Type and cost of health club memberships, by year, 2008 and 2009

Females pay less on average and may favor smaller gyms

Figure 23: Type and cost of health club memberships, by gender, March 2009

Younger respondents spend more on membership and are more likely targets for high-end

Figure 24: Type and cost of health club memberships, by age, March 2009

Middle-income group seeks value in long-term contracts

Figure 25: Type and cost of health club memberships, by HH income, March 2009

Reasons Not to Join a Health Club

Key points

Cost remains primary barrier to membership

Figure 26: Reasons for not belonging to a gym, 2008-09

Females may feel more welcome but increasingly look for free alternatives

Figure 27: Reasons for not belonging to a gym, by gender, March 2009

Perception of health club value improved among over-35s

Figure 28: Reasons for not belonging to a gym, by age, March 2009

Gyms commonly perceived as too expensive even among higher-earners

Figure 29: Reasons for not belonging to a gym, by HH income, March 2009

Membership Renewal

Key points

Large majority of current members would renew

Figure 30: Probability of renewal, by gender, March 2009

Over-55s are more likely to renew

Figure 31: Probability of renewal, by age, March 2009

Lower earners show lowest likelihood of renewing

Figure 32: Probability of renewal, by HH income, March 2009

Most common reasons for not renewing are financially driven

Figure 33: Reasons not to renew, March 2009

Price discounts are most likely way to increase renewal rates

Figure 34: Reasons not to renew, March 2009

Attitudes

Key points

Perception of health clubs improves but turnover rate is unchanged

Figure 35: Attitudes towards health and fitness clubs, March 2009

Female demographic is more price sensitive and feels more time pressure

Figure 36: Attitudes towards health and fitness clubs, by gender, March 2009

Social environment is more important for over-55s, while under-35s are harder to please

Figure 37: Attitudes toward health and fitness clubs, by age, March 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

Probability of renewal

Figure 38: Probability of renewal, by gender, March 2009

Attitudes toward health and fitness clubs

Figure 39: Attitudes towards health and fitness clubs, by HH income, March 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

Deal or deal-breakers?

During the recession, while consumers are looking for ways to cut back expenses, it will be particularly important for health clubs to keep members believing that their monthly membership fee is worthwhile. This is especially true for gyms that seek to avoid cutting membership dues and need to stem attrition to lower-priced concepts.

Gym owners need to find a balance between capital outlay and expected return through member retention.

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.