Companies in this industry operate fitness and recreational sports facilities that offer fitness equipment, exercise classes, swimming pools, and fitness instruction services. Major companies include LA Fitness, 24 Hour Fitness, Equinox, Gold's Gym, Planet Fitness, Life Time Fitness, and Town Sports International (all based in the US), along with Fitness First and Virgin Active (both based in the UK), Konami Sports Club (Japan), and McFit (Germany).
Worldwide, fitness centers generate about $90 billion in annual revenue, according to the International Health, Racquet & Sportsclub Association (IHRSA). More than 200,000 fitness clubs across the globe attract about 174 million members. The top three markets by revenue are the US, the UK, and Germany.
The US industry includes about 34,000 fitness and recreation center establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $30 billion.
Demand is partly linked to income levels and partly to market demographics. The profitability of individual companies depends on good marketing. Large companies have economies of scale in advertising and in buying equipment. Small companies can compete effectively if they have favorable locations or meet customer demands for personalized service and friendly atmosphere. The industry is fragmented in the US: the 50 largest companies account for about 30% of revenue.
Products, Operations & Technology
Major services include space and equipment for aerobic exercise (commonly referred to as cardio) and weightlifting. Facilities may also include basketball
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms