Competition: distinguishing factors of leading club companies
Successful global health club businesses tend to have a unique combination of distinctive characteristics. Here are some examples highlighted in IHRSA’s report
■ SOCIAL CONNECTIONS It is imperative to understand that the fi tness club business is a leisure and entertainment business. Health clubs strive to become the “third place”, the place after home and work where consumers spend their time. When com- peting for this distinction, clubs must understand that consumers want to be entertained via TVs and other media, and by personal trainers and group exer- cise instructors. They are also looking for a social network to connect with while they work out.
■ QUALITY SERVICE Clubs are part of the service and hos- pitality industry, which does not sell a product, but an experience. Clubs rely on consumers’ discretionary spending, and so the services the clubs provide must convince members that this spend- ing is essential. Some members spend
ISSUE 1 2012 © cybertrek 2011
ABOUT IHRSA: The International Health, Racquet & Sportsclub Association (
www.ihrsa.org) is the health club industry’s only global trade association, representing more than 10,000 health and fi tness facilities and more than 570 suppliers in more than 70 countries
an average of 60-90 minutes at the club and the site’s success depends on the friendliness, warmth, energy, helpful- ness, and effi ciency of staff, all of which encourages members to use the fi tness club regularly.
■ PRIME LOCATIONS The health club industry is part of the retail sector and thus depends greatly on the walk-in sale, as well as the age-old rule: location, location, location. Clear visibility, accessibility and appearance are extremely important to club success. However, there have been some changes
that are affecting this strategy. These include the subsidising of memberships by corporations and health insurers. With more corporations offering health club memberships, some ideal locations for a health club may be in a less visible loca- tion, such as an offi ce building that is convenient to employees.
Convenience is, of course, of vital
important to membership retention. Opening clubs near to where members work or live removes an important bar- rier to working out. Location strategies include placement within shipping malls and/or residential buildings and hotels.
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