Core/Stairmaster
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Health Club Management

Health Club Management

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UNITING THE WORLD OF FITNESS
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Health Club Management

Health Club Management

News

Flexible gym contracts better for retaining members: ukactive report

Flexible gym contracts which don’t require members to commit to a fixed term are actually better for retention than traditional 12-month tie-ins, according to a new report.

ukactive’s mid-year Business Performance Benchmarking Insight Report – based on data from more than 600 UK fitness and leisure sites – has found that enabling health club members to leave whenever they want is actually the best way to keep them.

The report found gyms with a fixed-term minimum 12-month contract saw an average membership length of 11.2 months, whereas gyms not requiring a 12-month commitment and offering more flexible contract lengths saw an average stay of 17.2 months.

The insight helps to neatly demonstrate one of the major shifts witnessed in the health club market over the past decade. Whereas the once dominant big box gyms were often synonymous with iron-clad, fixed term contracts, these operators have lost a significant share of the market to low-cost operators, who typically eschew contracts in favour of rolling monthly memberships.

Jan Spaticchia, CEO of fitness chain énergie Group has been well place to observe this shift. “énergie is in the relatively unique position of having one of its brands in the low cost sector whilst its other two brands are very much mid-market,” he said.

“There is no doubt that the low cost revolution has been a key driver for growth in the sector in recent times and we are seeing a democratisation of fitness where we are beginning to reach a broader cross section of society.”

The new ukactive report – produced in partnership with audit and accountancy firm Mazars – revealed several other findings. It showed that the sector is continuing to grow, with membership numbers up by nearly 1 per cent on this time last year and public trusts performing best – reaping the rewards of a renewed focus on widening their offerings.

Despite this, the report also found that the gap between the public and private areas of the sector still remains, with the average length of membership at 23.5 months for private gyms and 13.2 months at public sites.

“Business Performance Benchmarking is the lifeblood of many developed sectors,” said ukactive executive director Steven Ward.

“We must ensure we continue to analyse our industry data and assess the key trends if we are to keep ahead of the curve.”

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Flexible gym contracts which don’t require members to commit to a fixed term are actually better for retention than traditional 12-month tie-ins, according to a new report.
HAF,FIT,IND,RES
489488_14262.jpg
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Gita Sjahrir

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We became the first boutique fitness brand in all of Southeast Asia to ever raise venture capital backing. This was positive for the industry as it signalled that the industry had growth potential
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My vision, based on my own personal experience, would be for physical activity to become the norm – not something you have to make an effort to do, but something you just go ‘yeah, that’s part of my everyday life’
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News

Flexible gym contracts better for retaining members: ukactive report

Flexible gym contracts which don’t require members to commit to a fixed term are actually better for retention than traditional 12-month tie-ins, according to a new report.

ukactive’s mid-year Business Performance Benchmarking Insight Report – based on data from more than 600 UK fitness and leisure sites – has found that enabling health club members to leave whenever they want is actually the best way to keep them.

The report found gyms with a fixed-term minimum 12-month contract saw an average membership length of 11.2 months, whereas gyms not requiring a 12-month commitment and offering more flexible contract lengths saw an average stay of 17.2 months.

The insight helps to neatly demonstrate one of the major shifts witnessed in the health club market over the past decade. Whereas the once dominant big box gyms were often synonymous with iron-clad, fixed term contracts, these operators have lost a significant share of the market to low-cost operators, who typically eschew contracts in favour of rolling monthly memberships.

Jan Spaticchia, CEO of fitness chain énergie Group has been well place to observe this shift. “énergie is in the relatively unique position of having one of its brands in the low cost sector whilst its other two brands are very much mid-market,” he said.

“There is no doubt that the low cost revolution has been a key driver for growth in the sector in recent times and we are seeing a democratisation of fitness where we are beginning to reach a broader cross section of society.”

The new ukactive report – produced in partnership with audit and accountancy firm Mazars – revealed several other findings. It showed that the sector is continuing to grow, with membership numbers up by nearly 1 per cent on this time last year and public trusts performing best – reaping the rewards of a renewed focus on widening their offerings.

Despite this, the report also found that the gap between the public and private areas of the sector still remains, with the average length of membership at 23.5 months for private gyms and 13.2 months at public sites.

“Business Performance Benchmarking is the lifeblood of many developed sectors,” said ukactive executive director Steven Ward.

“We must ensure we continue to analyse our industry data and assess the key trends if we are to keep ahead of the curve.”

Sign up for FREE ezines & magazines
Flexible gym contracts which don’t require members to commit to a fixed term are actually better for retention than traditional 12-month tie-ins, according to a new report.
HAF,FIT,IND,RES
489488_14262.jpg

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Wellness company MYXfitness has become the latest company to launch an on-demand, at-home fitness offer,
EMD UK
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Franchised operator Planet Fitness has unveiled plans to expand its footprint into Australia. The first
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Beachbody – the global fitness brand behind Insanity and P90X – has announced that it
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Alliance Leisure
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1 - 15 of 11,156
Features
Supplier showcase
Precor and Matrix share their latest operator case studies
Features
Thought leaders
Equinox and SoulCycle became mired in controversy recently, when the CEO and majority shareholder of their parent company hosted a fundraiser for President Trump’s re-election. What's the way forward for these brands and what can we learn from this furore? Kath Hudson asks the thought leaders
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feature
TVS Group is one of the leading suppliers of flooring and surfaces for gym, sports and play environments. We take a look at what's behind this company's success
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Cycling
In last month’s issue we grilled operators about what makes the best indoor cycling class, and they agreed instructors play a crucial part in the overall class experience. Now we’re asking the experts on the frontline for their thoughts on what makes indoor cycling such a phenomenon
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Gita Sjahrir

Founder, R-FITNESS
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People
My vision, based on my own personal experience, would be for physical activity to become the norm – not something you have to make an effort to do, but something you just go ‘yeah, that’s part of my everyday life’
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We’re trying to help people understand exactly how much effort they need to apply in order to get the best outcome, so they can do it over a long period of time and not burn out. The overall training effect is then much better
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Rachael Blumberg

Platefit: creator and founder
People know yoga, Pilates, HIIT and Barry’s Bootcamp, but many don’t know vibration training and it’s my intention, passion and purpose to make it available and bring it to the world
People
One of the opportunities we’re looking at is in London. The location doesn’t suit a low-cost gym, but would suit a boutique-style model. - John Oxley
People
HCM people

José Teixeira

SC Fitness, Portugal: head of customer experience
People often assume that those who pay more stay longer, but we don’t see this. What we see is that if you have PT you stay longer because you use more, not because you pay more
People
WE11 is a disruptive model and is going to cause mayhem in the industry: we’ve flipped the script and given the PTs a fair deal, instead of rinsing them
People
Empowering our instructors is our next big task. This is an incredibly dedicated, loyal group of people and there’s a big opportunity to do something very special with them
People
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Myzone is adding the
Each year ACSM’s Health and Fitness journal releases the top fitness trends for the following year, and there was no surprise wearables came out on top.
Featured supplier news
Featured supplier: Brand means business: A new era of gym equipment customisation
Jordan Fitness has long been recognised for its premium-quality gym equipment, and its wide variety of free weights, benches, functional kit, rigs and storage.
Video Gallery
DFC: We do more...
DFC
DFC are a leading direct debit collection company, providing cash flow solutions to happy clients from all over the UK. Read more
More videos:
Company profiles
Company profile: Ecore
Ecore transforms reclaimed materials into unique performance surfaces that make people’s lives better. Ecore has ...
Company profiles
Company profile: Proinsight Research Ltd
We take time at the outset to understand your unique customer journey. Then we work ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Exercise equipment
EXF Fitness Equipment: Exercise equipment
Skincare
Comfort Zone - Davines S.p.A: Skincare
Trade associations
International SPA Association - iSPA: Trade associations
Direct debit solutions
Harlands Group: Direct debit solutions
Member access schemes
Move GB: Member access schemes
Professional services
Deloitte UK: Professional services
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Management software
GymSales: Management software
Spa software
ResortSuite: Spa software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Property & Tenders
Diary dates
21-22 Nov 2019
JW Marriott Miami Turnberry Resort, Aventura,
Diary dates
29 Nov 2019
The King’s Fund, London, United Kingdom
Diary dates
10-12 Dec 2019
tbc, Fort Lauderdale, United States
Diary dates
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Core/Stairmaster
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