The need for the fitness industry to increase the cost of memberships to drive revenues and increase perceptions of the value of facility-based exercise has been a message that emerged from the first day of the Asia-Pacific Health, Fitness, Wellness and Sports Festival being held in Sydney.
Across several sessions, speakers spoke of low membership revenues, summed up by Viva Leisure Managing Director and Chief Executive Harry Konstantinou advising “consumers are largely paying the same for memberships as they did 20 years ago."
The feelings follow the latest Canstar Blue industry satisfaction survey which revealed that spending on gym memberships declined in the past year, with Australians spending an average of $62 per month on gym memberships, or $744 over a year - noticeably down from $81 last year.
Les Mills Asia Pacific Chief Executive, Ryan Hogan noted “prices have gone up across the board in recent years - look at what you pay for a coffee, or a meal out - but club’s continue to charge the same, undervaluing their product.”
Addressing the issue, Konstantinou added “the public perceive gyms as cheap, a result of a race to the bottom over the last 10 years or so.
“But now we shouldn’t be scared to increase prices.”
Justifying his move to raise membership prices, Konstantinou spoke of the unique experience that exercising in a club environment delivers, sharing his feeling that Viva Leisure’s facilities are competing in the ‘experience industry’ rather than the fitness industry.
This sentiment was shared by fellow speaker Andy Chamoun, Executive General Manager (Australia) of the Fitness and Lifestyle Group.
Globally, the International Health, Racquet & Sportsclub Association’s most recent survey shows that about 80% of its members say they expect membership and revenue to increase by more than 5% this year.
Beyond Activ’s Asia-Pacific Festival continues at the Sofitel Wentworth Sydney today (22nd November) and tomorrow.
Beyond Activ has also been announced that beyond events in Saudi Arabia, Singapore and the USA, the Asia-Pacific Health, Fitness, Wellness and Sports Festival will return to Sydney from 2nd to 4th December next year.
Click here for more information on the 2023 Asia-Pacific Health, Fitness, Wellness and Sports Festival, being held in Sydney from 21st to 23rd November, in the Australasian Leisure Management industry Calendar.
Images: The main stage at the 2023 Asia-Pacific Health, Fitness, Wellness and Sports Festival (top, credit: Scott Hunt) and Beyond Activ founder and Chief Executive Ross Campbell (below).
About the author
Nigel Benton
Co-founder/Publisher, Australasian Leisure Management
Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia and New Zealand’s only magazine for professionals in all areas of the leisure industry. Having established the magazine in 1997, shortly after his relocation to Australia, he has managed its readership rising to over 11,500 and its acceptance as the industry journal for professionals in aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues.
In 2020, he launched the new Asian Leisure Business website.
Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.
Click here to connect with him via LinkedIn.
Read more from this author
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