Club Pellikaan: Leasing space to a childcare provider drives revenue and broadens the clubs’ offering
ROB GREGORY Lifetime Health • Owner
mortar assets, it’s important to understand the utilisation of different areas of the club: whether there’s unused capacity and where capacity is limited by bottlenecks. But it’s difficult to translate this understanding into a hard metric, such as revenue per square foot generated in different areas of the club. Two ways of increasing yield that I particularly like are
“I
offering casual usage on a ‘per visit’ basis (it’s simple to do and a source of new membership) and virtual classes. Another under-utilised strategy is to allow members to charge purchases to an account that’s settled at the end of the month – I’ve rarely heard of an example where this hasn’t increased revenue. Use of technology is a component of all three options. But the focus on the physical building is a limiting paradigm.
Clubs must make better use of all their assets: staff, brand, content, members, IT infrastructure, digital capabilities, partnerships, competencies in service delivery. Operators also need to be more focused on the online opportunity. No-one can be complacent, but there will always be a place
for larger clubs, particularly where they offer more breadth of facilities and services.
” May 2013 © Cybertrek 2013
n order for club operators to maximise yield from their bricks and
SEAN TURNER Holmes Place • Chief digital officer
of the market, digital health and the emergence of high-quality niche concepts. The ‘one size fits all’ approach is shifting to an increasingly personalised, customer-centric focus involving a more engaging member experience – a shift that’s necessary for large clubs to remain successful, as a positive member experience constitutes a valuable USP. Large clubs with dedicated floorspace are evolving their gym-
“T
space allocation to favour open areas for group training and PT over traditional strength and cardio zones, boosting customer engagement and product yield. A trend toward the merging of the healthcare and fitness industries may also create lucrative profit-share opportunities and added-value client packages as space is converted and dedicated to health and medical services. Technology has emerged as a major element in enhancing
the member experience: successful premium operators have used such tools to add value inside and outside the club, while budget operators leverage technology to support their highly efficient, low-cost, value operations. Technology needs to enhance the member experience – if the technology is not adding value for the member, don’t do it.
” Read Health Club Management online at
healthclubmanagement.co.uk/digital 27
raditional multi-club models are being challenged by the polarisation
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