Part
01
of one
Part
01
What is the most successful fitness club in North America and why? What are the top 10 demographic statistics supporting that success?
Hello, and thanks for your request for information on the most successful fitness club in North America, as well as the top ten demographic statistics that contribute to that success. The bottom line is LA Fitness is the top club based on revenue, Anytime Fitness is tops based on number of locations and Planet Fitness has the largest member list. Fitness club members tend to be primarily over the age of 35, but the 55 and over group is growing the fastest. High end gym users have more disposable income and look at their gym membership as a status symbol.
METHODOLOGY
To gather the information to write this report, my colleague and I began by searching for the top fitness clubs in North America. That returned a report from Club Industry, from which we were able to determine the top clubs based on revenue, number of locations and number of members. The top club was different for each category.
Based on the list of the top three clubs, we searched for specific demographics for each, to determine the key factors which contribute to their industry leading positions. We looked for data on average age, income, education, lifestyle choices, and more. The demographics information below has been summarized from authoritative news reports, industry publications, and the websites for each of the companies.
Note that these three clubs target different markets and current reporting on each of their demographics was surprisingly limited. Where available, I have included club specific information. Otherwise, I have included general industry demographics. In several areas (education, ethnicity and marital status), I was unable to find a significant amount of reliable data. I have included a link to a paid report that promises detailed analysis on those two points.
LA FITNESS: TOP FITNESS CLUB - BY REVENUE
Club Industry, a well know trade publication, compiles a Top 100 Health Clubs list each year, based on club revenues. Three companies had revenues in excess of $1BN. For 2016, the number one club was LA Fitness, which recorded $1.912BN in 2015 revenues (up from $1.85BN in 2014). The Club Industry report contributes part of this growth to LA Fitness' acquisition of eleven 24 Hour Fitness clubs in Arizona, 3 of which it subsequently closed. As of 2015, the company owned 675 locations. There is a $99 initiation fee to join LA Fitness, plus either a $29.99 or $19.99 monthly fee depending on whether or not you want multi-club of single club access.
Other clubs in the top ten include 24 Hour Fitness, Life Time Fitness, ClubCorp, and Equinox.
ANYTIME FITNESS: TOP FITNESS CLUB - BY NUMBER OF LOCATIONS
A closer look at Club Industry's Top 100 Health Clubs of 2016 reveals that Anytime Fitness had the largest number of locations of any single health club brand in 2015, with a combined 3,028 owned and franchised sites. Club Industry ranked them 16th overall, based on their $91MM 2015 revenue. Membership costs vary based on location and amenities, but range from around $35-$42 per month.
Lift Brands, which owns Snap Fitness, 9 Round, YogaFit, Steele Fitness, and Fitness On Demand, has 3,889 owned, franchised and leased locations across all brands in 2015.
PLANET FITNESS: TOP FITNESS CLUB - BY NUMBER OF MEMBERS
Planet Fitness ranked number seven on Club Industry's Top 100 Health Clubs, based on its 2015 estimated revenue of $330.5MM. It had 1,124 locations as of 2015. Their website claims more that 8MM members (up from 7.3MM in 2015) and that they're "one of the fastest growing health club franchises in the U.S. Planet Fitness charges either a $10 or $19.99 monthly fee, depending on the package selected. Planet Fitness targets the 80% of Americans who don't have a gym membership.
DEMOGRAPHIC STATISTICS
1. Lifestyle Seekers
In an article with Club Industry, CEOs of the major health clubs like 24 Hour Fitness say that their clientele is becoming more mindful about their health overall. It's not just about providing a place to exercise, it's about the whole package - nutrition services, creating a healthy community, meditation classes, and lifestyle coaching. Peter Taunton, President and CEO of Snap Fitness tells Club industry that his gym members are looking for a club that "cares about their health and wellness."
Many fitness club members are also concerned about the rising cost of healthcare, thus tackling obesity and overall health are key motivating factors in the purchase of a gym membership.
2. Age
A 2014 article on ElivateFitness.com says that while "consumers ages 18 to 54 still make up the lion’s share of gym memberships, revenue will be driven by two other demographics that are relatively new targets for the industry: the elderly and teens." A 2015 International Health, Racquet & Sportsclub Association report puts the age span at 18-44, with "the most active users are over the age of 35." As you found in the Chron article you cited, 25% of health club members are north of age 55, and this will likely be the fastest growing group of fitness consumers.
3. Income
The International Health, Racket, & Sportsclub Association (IHRSA) reports that "in markets where the average household income is $75,000 or more, such a community can support [membership] dues pricing in the $60 to $125 range," i.e. LA Fitness. The IHRSA goes on to say that "where the average household income is $50,000 to $75,000, the market will support dues pricing in the $45 to $74 range. And where household income is in the $20,000 to $50,000 range, the market will support monthly dues pricing in the $10 to $44 range." This last group would likely encompass members of Anytime Fitness and Planet Fitness.
IHRSA indicates that low price clubs like Planet Fitness have pressured clubs in recent years to lower their membership fees.
4. Education
IHRSA reports that the better educated the community, "the higher will be the overall market penetration rates of the clubs serving that market." They go on to say that the "health club penetration rate among men and women with advanced degrees (business degrees, law degrees, medicine, etc.) is 25.2%. Conversely, among men, who earn $75,000 or more, but who did not go to college, the penetration rate is 11.6%." Additional information may be gleamed from this paid report published by the IHRSA.
5. Gender
Gym membership is pretty evenly split between men and women, however more women than men use their membership. Club Industry cites IHRSA data that says that "males make up only 38 percent of club attendance figures." This data is supported by the 2014 Fitness Franchise industry report, which notes a rise in the number of gyms catering to women.
A 2015 IHRSA reports that "women are much more likely to participate in most group exercise classes than men. However, men are more likely to engage in group cycling classes than women." That report also says that "males are more likely to belong to commercial multipurpose and boot camp facilities, females are more likely to belong to yoga/Pilates/barre and residential centers. Men and women are nearly equally represented in nonprofit and combat-focused facilities (boxing/mixed martial arts/MMA)."
6. Marital Status
Very little information could be found on the marital status of gym members. I found one article comparing LA Fitness and Life Time Fitness. In the Twin Cities Business report, the Life Time Fitness CEO claims that LA Fitness members tend to be single. Additional details on marital status should be available in this paid report.
7. Ethnicity
I could find very little breakdown in terms of the ethnicity of gym members. The one source I did find that looked hopeful is behind a paywall. If you're interested, you can download it here.
8. Status Seekers
Planet Fitness and Anytime Fitness patrons are generally not looking to boost their status through their gym membership. According to Business Insider, Planet Fitness is "the antithesis of the boutique fitness model," offering no frills. Business Insider goes on to say that at Planet Fitness, "the gym prides itself on its philosophy of 'no judgment' and 'no gymtimidation'— there are signs plastered across the gym stating it's a 'judgment free zone,' and signs on the equipment reminds members that they 'belong.'" It is the place people go to work out before they join a higher end club.
On the opposite end of the spectrum are clubs like LA Fitness where "affluent consumers seeking luxury and status are willing to pay a premium for the boutique studios that deliver fitness, wellness and a deluxe experience," according to financial services firm Stephens. LA Fitness offers group classes, pools, saunas, indoor racquetball and basketball courts, a juice bar and state of the art facilities, whereas Planet Fitness offers neither frills nor free weights over 80 pounds.
9. Exercise Experience/Enthusiasm
According to a Business Insider article, Planet Fitness' target demographic is "people who are just getting used to work out — or people who really, really hate exercising." In an interview with the publication, COE Chris Rondeau says they target first time or casual gym users. In that same article, Rondeau says that other gyms, like LA Fitness, appeal more to those who think of exercise as a hobby.
10. Location
StatisticBrain.com reports that the top 5 gym spending cities (based on monthly spending) are Savanna (GA), Naples (FL), New York (NY), Sarasota (FL), and Astoria (NY).
IHRSA indicates that travel time to the clubs should be no more than twelve minutes. CreditDonkey.com reports that "fifty percent of members surveyed said that they stayed with their current gym based on the convenience of its location."
IHRSA also cites population density as a key factor in the location of a club. They say that, "health clubs thrive in markets where population density is highest," ideally between 60,000 and 100,000 people in the area.
CONCLUSION
LA Fitness is the top club based on revenue, Anytime Fitness is tops based on number of locations and Planet Fitness has the largest member list. Fitness club members tend to be primarily over the age of 35, but the 55 and over group is growing the fastest. Planet Fitness targets those new to exercise while higher end clubs like LA Fitness seek those who look at exercise as a hobby.
Thanks for using Wonder! We look forward to helping you with your next request.