Partner Article

Gym membership falls while fees increase

The North East has seen falling membership levels in its health clubs whilst joining fees have increased. The region is one of four areas in the UK where membership levels are dropping the fastest, but is the only area where the fees are actually rising too.

On a national level, UK fitness clubs had 53,500 fewer members in June 2006 compared to the previous year according to the HealthClubBenchmark Survey by Deloitte.

The drop of membership levels for the north east over this period is 5.7% - but whilst the rise for monthly subscriptions for the corresponding period has been a modest 1%, joining fees in the region have increased by 30.4%, whilst falling in every other part of the UK.

Paul Williamson, senior partner at Deloitte in Newcastle, says: “We have seen a decrease in the number of people paying for health club membership. With conditions becoming tougher in the UK domestic economy, many consumers are opting to cut their discretionary spending. The leisure industry, like all consumer-focused sectors, is set for harder times. “With total operating costs for health clubs on the rise, profit margins for the industry are under pressure. To succeed in the current economic conditions, health clubs and leisure centres need more variable pricing structures and to retain members through improved service and a more enjoyable exercise experience.”

He adds: “Lowering joining fees across the country may help attract new members, but will not retain existing members who may be looking to cut back discretionary spending – and our survey found that with the rise in joining fees in our region, potential north east gym goers are not even getting this incentive. “The industry needs to react quickly, as, despite heightened awareness of obesity problems and the link between health and fitness, consumers are not yet opting to join health clubs, and clubs are not achieving expected growth in member numbers.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .