Can fitness operators learn from global hotel brands, or are the challenges very different?
TONY DE LEEDE Fit n Fast • CEO
“G
lobal expansion in the fitness industry is fraught with
difficulties, and there still hasn’t been a big name that’s sustained major growth in overseas markets. Fitness First was probably the closest that a large, company-
owned group came to achieving significant global expansion, but each of its international regions went through their own highs and lows. In the first eight years, Fitness First Australia experienced amazing growth, accounting for a high percentage of the group’s overall profits from a 25 per cent share of the total clubs. Since then, the new owners have sold off around 20 per cent of the clubs, with a consequent reduction in overall profits. Obviously there are major challenges around working in
different languages and cultures. This is where you would think the franchise system might be more successful than a fitness business with company roots, as franchisees tend to be local people who are close to the community and work extremely hard at their business. And yet franchise fitness models also seem to have failed at a fairly strong rate around the world. I feel that, because we’re still a very young industry, there’s
no real history or consistency we can point to where we can say: ‘This is how it’s done.’
” October 2013 © Cybertrek 2013
SCOTT LLOYD David Lloyd Leisure • CEO
property, development and capital needs for expanding globally are going to be very different from, say, the budget clubs. Firstly, our lead times will be much longer, but once sites
“A
are established they become quality assets delivering strong returns in high profile locations. As they are large, they also benefit from their own economies of scale and so are less dependent on the local infrastructure in this respect. We want our future scaleability in global markets to more
closely follow the funding and development models of the four- and five-star hotel chains. This model, which is still a new concept for the fitness sector, brings together management contracts and property investment partners in local territories. While brand and operational standards can be replicated
quite easily, tapping into local investment knowledge is key. There’s the added benefit that investors will tend to approach us with the best opportunities, rather than us having to put manpower on the ground to find the right places. Where the model differs from the hotel chains is that, while
those businesses serve a travelling public, global fitness brands must create strong member connections in all local markets.
” Read Health Club Management online at
healthclubmanagement.co.uk/digital 29
s DLL specifically operates much larger, family-type facilities, our
©
SHUTTERSTOCK.COM/ANDRESR
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92