Latest News

Back to Latest News back

 

IBISWorld shows that 24/7 budget gyms have transformed Australian fitness

IBISWorld shows that 24/7 budget gyms have transformed Australian fitness
April 8, 2018

Rapid 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 


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

EventPro

At EventPro Software, we are proudly different from our industry competitors. We have a development-driven culture and 20 years’ experience in event, venue, and catering management software,…

read more

Events / Hospitality / Technology / Ticketing / Venues

 
 

MYRTHA POOLS

Founded in 1961, Myrtha Pools® quickly became Italy’s première swimming pool company, and has since grown into one of the world's leading swimming pool construction…

read more

Aquatics / Design / Play / Waterparks / Wellness

 
 

TJS Services

TJS Services is a leading national facility services provider. We deliver quality cleaning, maintenance, construction and facility management services to over 1,500 sites Australia wide.  Our…

read more

Hospitality / Retail / Venues

 
 

The Pool Enclosure Company

Welcome to The Pool Enclosure Company (TPEC). We provide a large range of premium commercial and residential retractable swimming pool, spa and terrace enclosures throughout Australia, servicing…

read more

Aquatics / Design / Recreation / Venues

 
 

REGUPOL

Regupol Australia Pty Ltd offers a comprehensive range of recycled rubber fitness and leisure flooring surfaces. Their range of products include everroll rubber flooring, Regupol elastic…

read more

Fitness / Recreation / Safety / Surfaces

 
 

SENtag

Developed in Europe, this innovative system offers a safety management solution for swimming pools that checks individual swimmers via their wristband - monitoring their depth and time. Sensors…

read more

Aquatics / Hospitality / Safety / Technology / Waterparks

 
 

XBODY Australia Pty Ltd

PROVEN BUSINESS CONCEPTS WITH XBODY XBody’s goal is to see you and your EMS business succeed. That is why we don’t just sell equipment, we provide know-how, expert knowledge,…

read more

Fitness / Technology / Wellness

 
 

The Retention People Australia

TRP help health clubs, leisure centres and gyms across the globe create happy, loyal members through our user-friendly software which enables effective engagement and the delivery exceptional customer…

read more

Fitness / Marketing / Recreation / Technology / Wellness

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business