State Wide Pool Services
Known as Hydrilla since September 2020 - see www.ausleisure.com.au/suppliers/hydrilla-pty-ltd
read moreRapid growth in budget 24/7 gyms has transformed the Australian fitness industry over the past five years according to a recently released report from market analysts IBISWorld.
The recently released report, Gyms and Fitness Centres in Australia (subtitled Exercising power: Establishment numbers have bulked up due to the popularity of 24-hour gyms), shows that with companies such as Anytime Fitness, Jetts, Snap Fitness 24/7 and Plus Fitness having expanded across all states and territories, they are now beginning to consolidate their market-leading positions.
The report explains “these gyms provide their members with access at any time through individual passes (and) while the increased accessibility of 24-hour gyms is attractive to many consumers, their affordability has been the main factor driving their popularity.
“By not providing group fitness classes and only employing staff at peak times, these companies can limit wage costs and pass the savings on to consumers through lower membership prices (and these) lower prices have attracted rising membership numbers.
“The growing number of 24-hour gyms has taken market share away from traditional full-service gyms, particularly those run by Fitness First. Full-service gyms have often locked consumers into long-term, expensive contracts.
“Conversely, budget 24-hour gyms tend to offer more flexible and affordable contracts, including free cancellations, no minimum terms and the option to pay by direct debit. This competition has caused gym membership prices to fall across the industry, with full-service gyms forced to become more flexible with their contracts in line with changing consumer expectations.
“Lower membership prices for consumers, particularly for those switching from full-service to 24-hour gyms, have constrained revenue growth over the past five years. However, the low cost base of 24-hour gyms has aided profit growth and contributed to profit increasing as a share of industry revenue over the past five years.”
The report goes on to state “spending on gyms and fitness centres positively correlates with increased health awareness across the population.
“Rising health consciousness means that consumers are increasingly concerned about their health and are more likely to exercise.”
Click here for more information on IBISWorld Industry Report R9111: Gyms and Fitness Centres in Australia (Exercising power: Establishment numbers have bulked up due to the popularity of 24-hour gyms), November 2017.
Image: Snap Fitness 24/7
5th April 2018 - SURVEY IDENTIFIES F45 AS PROVIDING HIGHEST LEVEL OF CUSTOMER SATISFACTION AMONG AUSTRALIAN GYMS
12th March 2018 - AUSTRALIAN FITNESS INDUSTRY REVENUES TO GROW TO $2.4 BILLION BY 2022/23
10th March 2018 - GYMS AND FITNESS CENTRES AMONG AUSTRALIA’S MOST SUCCESSFUL FRANCHISE OPERATIONS
1st November 2017 - FITNESS FIRST MOVE TO 24/7 OPERATIONS AIMS TO ALIGN WITH CHANGING WORK AND LIFESTYLE HABITS
27th October 2017 - FITNESS AND LIFESTYLE GROUP ACQUIRES GO HEALTH CLUBS
11th August 2017 - COLLECTIVE WELLNESS GROUP EYES 1,000 LOCATIONS AS PART OF AUSTRALIA-WIDE EXPANSION
27th July 2017 - SURVEY SHOWS FERNWOOD DELIVERS AUSTRALIA’S MOST SATISFIED FITNESS CLUB MEMBERS
4th August 2017 - COLLECTIVE WELLNESS GROUP ENERGISES ORANGETHEORY FITNESS IN AUSTRALIA
1st March 2017 - BUYER SOUGHT FOR NEXT GEN HEALTH & LIFESTYLE CLUBS
13th February 2017 - WORLD GYM ANNOUNCES AUSTRALIAN EXPANSION PLANS
2nd December 2016 - ACCC WILL NOT OPPOSE QUADRANT’S FITNESS FIRST ACQUISITION
14th November 2016 - THREE MULTI-MILLION-DOLLAR FITNESS CLUBS OPEN IN BRISBANE
25th October 2016 - FITNESS FIRST CLUBS TO BEGIN 24/7 OPERATIONS
29th September 2016 - QUADRANT EXPANDS WELLNESS EMPIRE WITH ACQUISITION OF FITNESS FIRST AUSTRALIA
14th August 2016 - GOLD’S GYM REVEALS AGGRESSIVE GROWTH PLANS FOR AUSTRALIA
11th May 2016 - ANYTIME FITNESS’ MEDIA SUBSIDIARY CHANGES NAME TO DRIVE FUTURE GROWTH
10th May 2016 - MASSAGE ENVY MARKS INTERNATIONAL EXPANSION WITH AUSTRALIAN LAUNCH
20th April 2016 - LOWER WAGE COSTS BOOST PROFITABILITY OF 24/7 GYMS
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Known as Hydrilla since September 2020 - see www.ausleisure.com.au/suppliers/hydrilla-pty-ltd
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