Fitness Centers
Description
Companies in this industry operate fitness and recreational sports facilities that offer fitness equipment, exercise classes, swimming pools, and fitness instruction services. Major companies include Equinox Group, Gold's Gym, LA Fitness, Life Time Fitness, Planet Fitness, and 24 Hour Fitness (all based in the US), along with Fitness First and Virgin Active (both based in the UK), Konami Sports Club (Japan), and McFit (Germany).
Worldwide, fitness centers are valued at about $96 billion, according to Statista. There are more than 200,000 health and fitness clubs worldwide. There are about 174 million members of health/fitness clubs worldwide.
The US industry includes about 37,000 fitness and recreation center establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $35 billion.
COMPETITIVE LANDSCAPE
Demand is partly linked to income levels and partly to market demographics. The profitability of individual companies depends on good marketing. Large companies have economies of scale in advertising and in buying equipment. Small companies can compete effectively if they have favorable locations or meet customer demands for personalized service and friendly atmosphere. The industry is fragmented in the US: the 50 largest companies account for about a third of revenue.
Commercial gyms and fitness centers face competition from traditional nonprofit facilities, like YMCAs and community centers, as well as in-house fitness centers run by hospitals, hotels, and corporations. Home gyms are also a source of competition, as are gyms in apartment buildings and condominiums. Online personal training and fitness coaching and a growing number of fitness apps and activity trackers are other alternatives to club membership.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include space and equipment for aerobic exercise (commonly referred to as cardio) and weightlifting. Facilities may also include basketball courts; tennis or racquetball courts; racetracks; swimming pools, hot tubs, and saunas; and showers and lockers. Fitness memberships account for about 65%. Fitness evaluation and personal training services, and leisure, recreational, and athletic instructional programs each account for about 10%; and all other recreation, sports, and fitness services each account for about 10% of revenue. Other revenue-generating services may include additional fees for sessions with professional trainers, fitness classes (including various forms of aerobics and yoga), and child care, as well as sales of food, beverages, and sports clothing and equipment.
Fitness centers provide their members with space and equipment to engage in various types of physical activities. Clubs typically make staff available to answer customers’ questions, instruct fitness classes, and offer personal training. Club operators are also responsible for maintaining facilities and equipment. Small studios may cover just a few thousand square feet; multi-activity operations can exceed 100,000 square feet.
Fitness equipment can be classified into cardio machines (treadmills, stationary bicycles, stair climbers, rowing machines and elliptical cross trainers); weightlifting machines (sometimes called resistance equipment or plate-loaded equipment); and traditional weight-training equipment (barbells and various types of benches, bars, and racks). Many gyms lease equipment rather than buy because of high capital costs and tax breaks.
Worldwide, fitness centers are valued at about $96 billion, according to Statista. There are more than 200,000 health and fitness clubs worldwide. There are about 174 million members of health/fitness clubs worldwide.
The US industry includes about 37,000 fitness and recreation center establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $35 billion.
COMPETITIVE LANDSCAPE
Demand is partly linked to income levels and partly to market demographics. The profitability of individual companies depends on good marketing. Large companies have economies of scale in advertising and in buying equipment. Small companies can compete effectively if they have favorable locations or meet customer demands for personalized service and friendly atmosphere. The industry is fragmented in the US: the 50 largest companies account for about a third of revenue.
Commercial gyms and fitness centers face competition from traditional nonprofit facilities, like YMCAs and community centers, as well as in-house fitness centers run by hospitals, hotels, and corporations. Home gyms are also a source of competition, as are gyms in apartment buildings and condominiums. Online personal training and fitness coaching and a growing number of fitness apps and activity trackers are other alternatives to club membership.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include space and equipment for aerobic exercise (commonly referred to as cardio) and weightlifting. Facilities may also include basketball courts; tennis or racquetball courts; racetracks; swimming pools, hot tubs, and saunas; and showers and lockers. Fitness memberships account for about 65%. Fitness evaluation and personal training services, and leisure, recreational, and athletic instructional programs each account for about 10%; and all other recreation, sports, and fitness services each account for about 10% of revenue. Other revenue-generating services may include additional fees for sessions with professional trainers, fitness classes (including various forms of aerobics and yoga), and child care, as well as sales of food, beverages, and sports clothing and equipment.
Fitness centers provide their members with space and equipment to engage in various types of physical activities. Clubs typically make staff available to answer customers’ questions, instruct fitness classes, and offer personal training. Club operators are also responsible for maintaining facilities and equipment. Small studios may cover just a few thousand square feet; multi-activity operations can exceed 100,000 square feet.
Fitness equipment can be classified into cardio machines (treadmills, stationary bicycles, stair climbers, rowing machines and elliptical cross trainers); weightlifting machines (sometimes called resistance equipment or plate-loaded equipment); and traditional weight-training equipment (barbells and various types of benches, bars, and racks). Many gyms lease equipment rather than buy because of high capital costs and tax breaks.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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