on April 04, 2022
Tough times for the fitness industry
For two years now, gym owners have been suffering from the consequences of the pandemic. The consequences are: declines in check-ins, cancellations and a lack of new memberships, which have caused a great deal of financial damage. Our umbrella company Sport Alliance has now published a press release on exactly what the trend looks like, looking at data from 2,000 sports facilities in Germany. The result: Last year was not a good one for the industry either.
2020: A look back on the German fitness market
After months of lockdown and isolation, in the summer of 2020 the industry was hoping for an improvement of the situation due to the less strict measures. And members actually returned to the studios. This is also shown by the figures, which were almost at the level of summer 2019.
The urge of your members to return to the studios and finally work out again was high. Unfortunately, however, the joy over the positive development lasted only a few months.
In the fall of 2020, the uncertainty returned
Even though most of us just wanted to enjoy the summer after the heavy lockdown and fully enjoy the freedom we had regained, the experts predicted it: a second Corona wave in the fall was highly likely. Unfortunately, they were right.
Increasing infection numbers initially led to contact restrictions and a subsequent lockdown in December and immediate effects in the studios. A comparison of November 2019 and November 2020 alone shows a drop of more than 96 percent in check-ins. A bad loss for the entire fitness industry, which lost millions in revenue as a result*.
2021: The figures speak for themselves
2020 hit us hard with severe and long-term lock-downs, yet looking back, 2021 was also a big challenge for the industry. According to the survey, there was about 20 percent less people in the studios last year than in 2020, yet we were all hoping that 2021 would be the year of a bounce-back for gyms.
Vaccination offers increased, Corona numbers dropped and there was one lockdown instead of two like the year before. Gym operators prepared for the return of their members, invested a lot to adhere to hygiene regulations in order to offer a safe stay in the gym. However, it became apparent that despite better circumstances, 2021 presented further challenges and members did not return as hoped.
Among the reasons for the absence of members were:
- Very long lockdown in the first quarter until May 2021
- Strict regulations imposed including vaccination and test certificates
- Fear of contagion among members
- Large number of cancellations already received in the previous year
- As of November: renewed restrictions that were added
The aftermath of the pandemic
The downward spiral is most evident when looking at the number of gym check-ins. In 2021, 57 percent fewer people checked into gyms than they did before the pandemic in 2019. (That compares to 38 percent fewer in 2020.)
“The numbers of our study show the massive impact COVID had on the fitness industry in Germany. But as most studios worldwide were also particularly affected by several lockdowns and the measures that have been widely imposed on gyms and studios, our results can probably be applied to most markets worldwide.” says Maike Kumstel, International Business Development Manager at Sport Alliance.
A weak start to 2021
The first quarter is incredibly important for gym operators*. Normally, this is the time when sports and fitness facilities are particularly busy, but it turns out, only from mid-February a slight increase can be seen.
While in 2020, gym visits almost rebounded to pre-Corona levels in May after the lockdowns, a year later, that’s not the case. “The first quarter, which is so important to the fitness industry, did basically not exist in 2021 – just like the year before. We had fewer members in studios overall, fewer new memberships, and then an also very cautious behaviour among people who were afraid of new infections. This is depressing the figures a lot,” says Artur Jagiello, Head of Marketing and Communication at Sport Alliance.
What does that mean for the future of the industry?
Corona has made us all rethink and redefine our concepts and the services we offer. Digital offers, online bookings and flexible memberships are on the rise. Modular offers that allow members to book add- ons like home workouts or personal training have become an integral part of many new studio concepts.
Here’s a quick rundown of things you can implement now in order to cope with the changes:
- Online streaming of workouts
- Referral programs for new members
- Compensation programs
Interested to find out how to integrate Zoom into your Magicline or implement hybrid studio concepts for your online workouts? Read about it in our many blog articles.
Using social media channels is also an important factor for customer retention and acquisition. Keep your community up to date and provide exciting, informative and current content. We have compiled many helpful tips for this on our blog as well.
Even if your members returned to the studios, working models have changed fundamentally. The opportunity of working from anywhere will remain in many industries, so the trend of working out from home from time to time will stay.
Download the Sport Alliance press release and images here:
Any questions?
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