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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

features

Editor's letter: Friend or foe?

Aggregators connect with consumers at a scale beyond most fitness operators and – where they’re credible – look for a win:win relationship with gyms. A new report gives insights into how this is panning out

By Liz Terry, Leisure Media | Published in Health Club Management 2020 issue 2
Aggregators are disrupting the industry / PHOTO: SAINTS & STARS
Aggregators are disrupting the industry / PHOTO: SAINTS & STARS
The report shows that 21 out of every 100 users will go on to join a gym directly, while only one in 100 cancelled to use the aggregator

The debate about whether aggregators are good for the industry prompts different and sometimes extreme views from people, depending on their own business model, level of market penetration and ambitions for expansion.

In a bid to introduce more facts into the conversation, industry company Hussle has published The Aggregation in Fitness Report to scrutinise its own impact on the industry.

The insights will be useful for operators when considering whether or not to engage with aggregators, although Hussle is clear that the numbers only relate to its own business model.

Gym users were polled to establish the impact the service has on their behaviour in three key areas: substitution – do they cancel to use Hussle?; intervention – does Hussle acquire customers traditional gym operators would have signed up; and incrementality – does Hussle create incremental value?

Data and methodology for the report were audited by research company, Fusion with a variance of ±6 being noted.

The report shows that 21 out of every 100 Hussle users will go on to join a gym directly, while only one in 100 cancelled a gym membership to use the service.

When it comes to intervention 3-6 in 100 Hussle users were acquired through potential marketing interventions and in relation to incrementality, findings show that 22 in 100 have a direct gym membership and use Hussle in addition.

There’s evidence aggregators are able to keep some consumers in the sector, despite their plans to quit a gym. The data shows that 16 of every 100 Hussle customers cancelled a membership for ‘organic reasons’ – ie, not because of the aggregation service – but that they continued to use a gym through Hussle, meaning they still contributed to revenues – albeit it at a lower level – and also via their secondary spend.

Tellingly, 83 per cent of the people polled who were lapsed health club members had not belonged to a club for an average of nearly 18 months, indicating that Hussle may be acting as a gateway back into health club membership.

So, with their huge reach, do aggregators tap into new markets that gyms can’t reach alone? It seems this is the case.

In addition, the report found more flexible models are popular with consumers, as fifty per cent of those polled who had never belonged to a gym said they’d avoided taking on a membership because they didn’t want to be tied into a contract. This appetite for a more flexible model has been one of the factors driving the (membership-free) budget sector and illustrates why budget operators are among those who most often question and challenge the role of aggregators.

Flexibility is emerging as a major driver for many consumers when making choices. With 35 per cent of non-members saying they value the opportunity to exercise close to home and to work and also when travelling, we expect aggregators to play to this strength and demand in developing their businesses.

Congratulations to Hussle for the transparency and for bringing more facts into the debate to move the industry forward.

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https://www.leisureopportunities.co.uk/images/imagesX/953044_978360.jpg
A new report from Hussle shows that aggregators may be acting as a gateway back into health club membership, says HCM editor Liz Terry
Hussle,aggregators
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features

Editor's letter: Friend or foe?

Aggregators connect with consumers at a scale beyond most fitness operators and – where they’re credible – look for a win:win relationship with gyms. A new report gives insights into how this is panning out

By Liz Terry, Leisure Media | Published in Health Club Management 2020 issue 2
Aggregators are disrupting the industry / PHOTO: SAINTS & STARS
Aggregators are disrupting the industry / PHOTO: SAINTS & STARS
The report shows that 21 out of every 100 users will go on to join a gym directly, while only one in 100 cancelled to use the aggregator

The debate about whether aggregators are good for the industry prompts different and sometimes extreme views from people, depending on their own business model, level of market penetration and ambitions for expansion.

In a bid to introduce more facts into the conversation, industry company Hussle has published The Aggregation in Fitness Report to scrutinise its own impact on the industry.

The insights will be useful for operators when considering whether or not to engage with aggregators, although Hussle is clear that the numbers only relate to its own business model.

Gym users were polled to establish the impact the service has on their behaviour in three key areas: substitution – do they cancel to use Hussle?; intervention – does Hussle acquire customers traditional gym operators would have signed up; and incrementality – does Hussle create incremental value?

Data and methodology for the report were audited by research company, Fusion with a variance of ±6 being noted.

The report shows that 21 out of every 100 Hussle users will go on to join a gym directly, while only one in 100 cancelled a gym membership to use the service.

When it comes to intervention 3-6 in 100 Hussle users were acquired through potential marketing interventions and in relation to incrementality, findings show that 22 in 100 have a direct gym membership and use Hussle in addition.

There’s evidence aggregators are able to keep some consumers in the sector, despite their plans to quit a gym. The data shows that 16 of every 100 Hussle customers cancelled a membership for ‘organic reasons’ – ie, not because of the aggregation service – but that they continued to use a gym through Hussle, meaning they still contributed to revenues – albeit it at a lower level – and also via their secondary spend.

Tellingly, 83 per cent of the people polled who were lapsed health club members had not belonged to a club for an average of nearly 18 months, indicating that Hussle may be acting as a gateway back into health club membership.

So, with their huge reach, do aggregators tap into new markets that gyms can’t reach alone? It seems this is the case.

In addition, the report found more flexible models are popular with consumers, as fifty per cent of those polled who had never belonged to a gym said they’d avoided taking on a membership because they didn’t want to be tied into a contract. This appetite for a more flexible model has been one of the factors driving the (membership-free) budget sector and illustrates why budget operators are among those who most often question and challenge the role of aggregators.

Flexibility is emerging as a major driver for many consumers when making choices. With 35 per cent of non-members saying they value the opportunity to exercise close to home and to work and also when travelling, we expect aggregators to play to this strength and demand in developing their businesses.

Congratulations to Hussle for the transparency and for bringing more facts into the debate to move the industry forward.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
https://www.leisureopportunities.co.uk/images/imagesX/953044_978360.jpg
A new report from Hussle shows that aggregators may be acting as a gateway back into health club membership, says HCM editor Liz Terry
Hussle,aggregators
Latest News
Boxing-inspired fitness operator Rumble has signed a master franchise agreement in Australia, which could see ...
Latest News
Hotel giant Accor has launched a new bespoke, premium fitness service for its upmarket Pullman ...
Latest News
People should concentrate on exercise and staying fit – rather than dieting and weight loss ...
Latest News
Sibec Europe, scheduled to take place in Cologne, Germany, from 2 to 5 November 2021, ...
Latest News
Swim England has warned that 2,000 swimming pools could be lost forever unless the government ...
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Sports Minister, Nigel Huddleston, has joined gym-goers this morning to kick-off the annual National Fitness ...
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The best in class of the physical activity sector have been revealed at the ukactive Awards 2021.
Featured operator news
Featured operator news: Everyone Active generates £342m in social value
Award-winning leisure operator Everyone Active generated £342million in social value at its sites across the country in 2019/20.
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Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Company profiles
Company profile: Proinsight Mystery Shopping
We take time at the outset to understand your unique customer journey. Then we work ...
Company profiles
Company profile: Venueserve Fitness
Venueserve Fitness is an easy-to-use, low-cost web- and mobile online exercise platform, already being used ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Spa software
SpaBooker: Spa software
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Exercise equipment
Pendex Fisio S.L.: Exercise equipment
Lockers/interior design
Fitlockers: Lockers/interior design
Red Light Therapy
 Red Light Rising: Red Light Therapy
Wearable technology solutions
MyZone: Wearable technology solutions
Salt therapy products
Saltability: Salt therapy products
Uniforms
Service Sport: Uniforms
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
13-14 Oct 2021
Online,
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
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