A third of members would pay extra for massages, physio or dietary advice
consumers. Many people have been deterred by long-term contracts and onerous terms and conditions; indeed, there continue to be a number of horror stories in the news which serve only to reinforce this impression. But increasingly, operators have
introduced more fl exible membership packages, with ‘easy-in, easy-out’ options offering no contracts (for more money per month) or shorter-term memberships. This, according to Mintel’s research, is the way to go. Customisation is a key consumer
trend at present, with the ‘one size fi ts all’ philosophy increasingly irrelevant in today’s society. In our research, the strongest demand was found to be for a customisable membership where you only pay for the facilities you want to use, picking from a menu of options. As well as a fully customisable membership, there is also some interest in a fl exible membership package consisting of access to the fi tness equipment, with a pay-as-you-use scheme for all other facilities. Clearly, implementation could present some logistical challenges, but with access to new technology – such as the RFID wristbands/tags that are increasingly used at music concerts and major events – it is not beyond consideration. Both of these options illustrate an
underlying demand among consumers for more control over what they pay
January 2013 © Cybertrek 2013
for within the health and fi tness club environment: almost half of all users (47 per cent) would like an element of fl exibility and customisation in their membership package. Given the current diffi cult economic situation, with consumers’ fi nances under considerable pressure, people do not wish to pay for facilities they do not use, preferring to have the option to pay for them only if they choose to use them.
BRAND EXTENSION With many of the major operators not considering any signifi cant new openings, and member numbers fl at or in some cases declining, it’s important that they look to new revenue streams for growth. Mintel’s research has found good levels of interest in products and services that would allow operators to extend their brands and generate more revenue from both members and non-members. The most prominent of these is
fi tness assessments, which nearly two-fi fths of consumers said they would be prepared to buy from health and fi tness club companies. Around a third also expressed an interest in paying for advice on diet and nutrition, as well as physiotherapy, massage and medical assessments. All of these are products that could
be delivered inside or outside of the club environment. They also have the
major advantage of offering clubs a way of establishing a dialogue with non- members, providing a platform from which to try and encourage them to trade up to membership. Additionally, there is an opportunity
to make inroads into the at-home fi tness sector, through the provision of exercise videos that can be downloaded and followed at home – perhaps even a live YouTube channel so people can follow classes at home. In our research, these concepts were particularly appealing to younger consumers. Similarly, younger people were also
much more likely than average to be interested in paying for mobile phone apps from health and fi tness operators – another area that could help extend operators’ brands beyond the confi nes of their clubs, generate incremental revenue and stimulate membership sales. ●
ABOUT THE AUTHOR
Michael Oliver is senior leisure analyst at Mintel. For details of the latest reports into the health and fi tness sector, visit
www.mintel.com
Twitter:
www.twitter.com/mintelnews LinkedIn: Join in the debate in the Mintel group –
http://www.linkedin.com/ groups?mostPopular=&gid=1888954
Read Health Club Management online at
healthclubmanagement.co.uk/digital 67
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