Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Health and Fitness Clubs - US - June 2009

Revenues and memberships for the US health and fitness club industry continue to show growth on the surface, but a slowdown in real dollar growth belies a looming decline in industry demand. New downward pressure on average revenue per member comes from the nation’s economic recession, as health clubs prepare for large scale cutbacks in consumer discretionary spending.

Analysis and insights offered include:

  • How membership levels have held up in 2009 and how the perception of health clubs have changed in the last year
  • Which types of club revenue are most threatened
  • Which trends are gaining momentum despite the recession
  • What kinds of innovations can add value for gym members
  • What percentage of gym members would renew (for the industry overall)
  • What are the best ways to increase membership renewal rates
  • Which demographics pay the most for their memberships

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. 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
                                        • Insights and Opportunities

                                          • Health clubs need to demonstrate added value during recession
                                            • Health club experience should follow social internet trends
                                              • Health clubs to become fitness destinations with diversified revenue streams
                                              • Inspire Insights

                                                  • Trend: A Simple Balance for Health
                                                    • What it’s about
                                                      • The learning curve
                                                        • Taking it to the streets
                                                          • Trend: Staying Connected
                                                            • What it’s about
                                                              • I belong
                                                                • Keep it simple, not stupid
                                                                • 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
                                                                                                                  • Cluster Analysis

                                                                                                                      • Big Spenders
                                                                                                                        • Who they are
                                                                                                                          • Opportunity
                                                                                                                            • Fitness Firsts
                                                                                                                              • Who they are
                                                                                                                                • Opportunity
                                                                                                                                  • Lifers
                                                                                                                                    • Who they are
                                                                                                                                      • Opportunity
                                                                                                                                        • Cluster characteristics
                                                                                                                                          • Figure 38: Health club member clusters, March 2009
                                                                                                                                          • Figure 39: Health club membership, by health club member clusters, March 2009
                                                                                                                                          • Figure 40: Type and cost of health club memberships, by health club member clusters, March 2009
                                                                                                                                          • Figure 41: Attitudes toward health and fitness clubs, by health club member clusters, March 2009
                                                                                                                                          • Figure 42: Probability of renewal, by health-club member clusters, March 2009
                                                                                                                                        • Cluster demographics
                                                                                                                                          • Figure 43: Health club member clusters, by gender, March 2009
                                                                                                                                          • Figure 44: Health-club member clusters, by age group, March 2009
                                                                                                                                          • Figure 45: Health club member clusters, by HH income, March 2009
                                                                                                                                          • Figure 46: Health club member clusters, by race/Hispanic origin, March 2009
                                                                                                                                        • Methodology
                                                                                                                                        • Custom Consumer Groups

                                                                                                                                          • Key points
                                                                                                                                            • Private club penetration
                                                                                                                                                • Figure 47: Incidence of exercise and private health club usage, by gender and age, July 2007-September 2008
                                                                                                                                                • Figure 48: Incidence of exercise and private health club usage, by marital status and children in the household, July 2007-September 2008
                                                                                                                                              • Reasons not to join
                                                                                                                                                • Figure 49: Reasons not to join a gym, by gender and children in the household, March 2009
                                                                                                                                                • Figure 50: Reasons not to join a gym, by marital status and children in the household, March 2009
                                                                                                                                            • Appendix: Other Useful Consumer Tables

                                                                                                                                              • Probability of renewal
                                                                                                                                                • Figure 51: Probability of renewal, by gender, March 2009
                                                                                                                                              • Attitudes toward health and fitness clubs
                                                                                                                                                • Figure 52: Attitudes towards health and fitness clubs, by HH income, March 2009
                                                                                                                                            • Appendix: Trade Associations

                                                                                                                                              Companies Covered

                                                                                                                                              • abercrombie
                                                                                                                                              • Bally Total Fitness Holding Corporation
                                                                                                                                              • Bebo Inc
                                                                                                                                              • Facebook, Inc.
                                                                                                                                              • Greenfield Online
                                                                                                                                              • International Health, Racquet & Sportsclub Association (IHRSA)
                                                                                                                                              • Jewish Community Center Association
                                                                                                                                              • LinkedIn
                                                                                                                                              • Mid-Atlantic Club Management Association (MACMA)
                                                                                                                                              • National Recreation and Park Association (NRPA)
                                                                                                                                              • National Strength & Conditioning Association (NSCA)
                                                                                                                                              • Sporting Goods Manufacturers Association (SGMA)
                                                                                                                                              • U.S. Bureau of Labor Statistics
                                                                                                                                              • U.S. Green Building Council (USGBC)
                                                                                                                                              • Ubisoft (USA)
                                                                                                                                              • YMCA
                                                                                                                                              • YouTube, Inc.
                                                                                                                                              • YWCA of the U.S.A.

                                                                                                                                              Health and Fitness Clubs - US - June 2009

                                                                                                                                              £3,199.84 (Excl.Tax)