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New marketing strategies needed to drive ongoing growth of 24/7 gyms

New marketing strategies needed to drive ongoing growth of 24/7 gyms
March 12, 2019

While 24/7 gyms have driven strong growth in the fitness industry over the past five years, an IBISWorld analyst suggests that revenue growth will slow over the coming five-year period.

Looking into to the findings of the Gyms and Fitness Centres in Australia (subtitled Exercising power: Establishment numbers have bulked up due to the popularity of 24-hour gyms) report, IBISWorld Enterprise Analyst/Researcher, Dennis Lim suggests that market saturation will mean major 24/7 fitness operators will “require new and long-term business and marketing strategies to attract new consumers and maintain brand loyalty for long-term customers.”

In a Blog, Lim writes “the gyms and fitness centres industry has displayed strong growth over the past five years. The industry has undergone significant structural changes over the period, with many operators focusing on a 24-hour business model. These establishments are usually unstaffed outside of standard business hours, making them cheaper to operate while still being convenient for consumers with a varied range of lifestyles and work schedules.”

Looking at Anytime Fitness, Lim comments that the group “was one of the first gyms to implement 24-hour access for its members, which allowed the company to significantly reduce expenses. These gyms tend to have lower wage costs while maintaining longer opening hours. This situation has become a win-win for both the gym and consumers, as the gym is more flexible for consumers in terms of opening hours, while maintaining lower operating costs. These savings are often passed down to members in the form of cheaper fees.

“Anytime Fitness has been one of the fastest growing franchises in Australia and has now become one of the largest gym brands (in the industry).

“The company is expected to achieve strong profit margins, as its business model enables it to operate with low wage costs.”

Lim is also enthusiastic about Jetts fitness, advising that "the company has expanded significantly in terms of revenue and establishment locations (with Jetts having) driven a significant proportion of (the Fitness and Lifestyle Group’s) combined growth, as the brand has achieved solid demand due to the rising popularity of 24-hour gyms.”

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: Anytime Fitness Camberwell.

Related Articles

29th January 2019 - Report suggests Fitness and Lifestyle Group buys CMG Asia for $200 million

20th December 2018 - Anytime Fitness unveils 500th Australian club

13th December 2018 - Anytime Fitness reveals new design identity for Australian clubs

14th May 2018 - ABC asks if fitness centre growth cycle might be coming to an end

19th April 2018 - Jetts announces Asian gym expansion

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

5th April 2018 - Survey identifies F45 as providing highest level of customer satisfaction among Australian gyms

24th March 2018 - Anytime Fitness attains global and local milestones and targets Antarctica club opening

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

5th January 2018 - Fitness and Lifestyle Group acquires Tasmanian-based Zap Fitness

6th September 2017 - Jetts Fitness quietly passes 10 year operational milestone

11th August 2017 - Collective Wellness Group eyes 1,000 locations as part of Australia-wide expansion

18th September 2016 - Quadrant Private Equity adds Jetts to fitness sector acquisitions in $100 million deal


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