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IBISWorld shows that 24/7 budget gyms have transformed Australian fitness
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
12th March 2018 - AUSTRALIAN FITNESS INDUSTRY REVENUES TO GROW TO $2.4 BILLION BY 2022/23
27th October 2017 - FITNESS AND LIFESTYLE GROUP ACQUIRES GO HEALTH CLUBS
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
20th April 2016 - LOWER WAGE COSTS BOOST PROFITABILITY OF 24/7 GYMS
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