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Diary Highlights
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18 Oct 2014
IHRSA 2014: Health clubs under threat from march of microgyms, says Ray Algar
Traditional health clubs offering a broad selection of activities at a mid-range price are at serious risk of having their business ‘salami-sliced’ away by specialised competitors.
That was the view of respected industry analyst Ray Algar during his address at the IHRSA Europe Congress in Amsterdam yesterday afternoon (17 October).
He said activity providers must decide whether they wish to pursue the path of low-cost self-service gyms, which have been a big success story in recent years, or go-down the path of offering a high-quality support structure for their clients - as found in the new wave of microgyms - if they are to thrive in a changing marketplace.
The mid-market gyms charging an average of £42 a month in the UK may find that small chunks of their members will be lost to low-cost competitors and microgyms specialising in the activities they most prefer - such as yoga, functional training or group cycling - until the business is no longer viable, Algar added. Approximately 120 private gyms are closing in the UK every year as their business model becomes no longer feasible, he lamented.
The new price points which are forming, Algar said, are approximately £16 per month maximum for a low-cost operator (slightly more in London), while microgyms are able to charge between £20-30 per hour session for the unique experience that they offer. He stated that the talented trainers are a key part of the high price point for microgyms, describing them as ‘rockstars’ who are vital to building loyal communities around new aspirational brands, such as Psycle and Soul Cycle, in a way mid-market gyms haven’t managed.
He highlighted this by citing a quote from Fitness First CEO Andrew Cosslett, who on joining the company from the hospitality industry noted: “The gym industry might be great at fitness, but it has never been very good at connecting with customers.”
In response to these new competitors, traditional mid market giants such as Fitness First and David Lloyd are piloting their own microgym brands, while some industry observers believe that embedding these boutique concepts within existing health clubs could preserve their status as the traditional centre of active lifestyles.
Algar pointed out that, as with the initial wave of microgyms, many of the entrepreneurs behind boutique clubs are arriving from outside the health and fitness industry, bringing new ways of thinking. Whichever path traditional gyms choose to take, he concluded, they will need to be clear in their approach and embrace innovation if they are to succeed.
The focus on the emergence of microgyms served as an apt precursor to Algar’s forthcoming report on the sector - which is expected to be released in December.
Health Club Management will be in attendance for the duration of the event and (WiFi permitting) will be live reporting on key developments via the HCM website.
A preview of the event can be found in the September edition of HCM magazine on pp.26-27.
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19 Apr 2024
Galgorm Resort gears up to host UK Aufguss Championships next week
UK sauna enthusiasts will converge at Galgorm Resort in Northern Ireland next week for the
highly anticipated second annual UK Aufguss Championships.
27 Mar 2024
Thailand's first lady attends APSWC Awards ceremony recognising industry excellence
The Asia Pacific Spa & Wellness Coalition (APSWC) recently marked another year of industry
achievement with a prestigious awards ceremony held during the 2024 APSWC Round Table
event in Bangkok, Thailand.
08 Mar 2024
Global Wellness Day 2024 to champion reconnecting with nature
Global Wellness Day (GWD) is set to mark its 13th annual celebration on 8 June 2024, under
the theme #MagentaNature, emphasising the vital connection between humanity and the
natural world.
04 Mar 2024
SHA Wellness receives top accolade at 2024 World Spa and Wellness Awards
Eight of the world’s leading spa operations were honoured at the annual World Spa and
Wellness Awards during a glamorous ceremony held in London over the weekend.
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01 Mar 2024
Second edition of UK Aufguss Championships set to heat up Galgorm Resort
The ancient art of aufguss will be celebrated this April with the Second UK Aufguss
Championships at destination spa and hotel Galgorm Resort in Northern Ireland.
06 Feb 2024
Canyon Ranch announces Enchant at The Ranch wellness festival
Destination wellness brand Canyon Ranch will host the first edition of its beauty and wellness
festival, called Enchant at Canyon Ranch, from 17 to 21 March at its Tucson resort and spa in
Arizona.
10 Jan 2024
Spas of America unveils Top 100 Spas of 2023, Spa at Séc-he lands first place
Spa and wellness travel website Spas of America has unveiled its Top 100 Spas of 2023, with
The Spa at Séc-he in downtown Palm Springs, California, taking the top spot.
20 Dec 2023
We Work Well unveils 2024 event schedule for fitness, wellness and hospitality industries
International hosted buyer event company We Work Well (WWW) has confirmed dates and
locations for its 2024 conference calendar.
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