Justin Mendleton
I am writing with reference to the debate circulating around the industry about the risks associated with partnering with online multi-venue platforms.
It’s an important subject and there are plenty of examples from other industries that have seen ‘aggregation/marketplace’ disruption.
We believe any credible debate needs be an informed one, understanding the risk and rewards. We are an industry of subscription-based, repeat-use consumers versus other industries like hotels and insurance which are predominantly one-off transactions and are very price-led. It is vital therefore for fitness operators to really understand what our marketplace platforms and their consumers offer, rather than predetermining that they are a threat to their business.
“ A partner whose core competence is digital can enable collaboration between operators to unlock the value of this growing demand”
There is undeniable growing consumer demand for multi-venue usage. We believe this demand, combined with the growing evidence that it increases retention, means that we need an open and educated debate about how to use technology to tap into the opportunities.
A partner whose core competence is digital can enable collaboration between operators to unlock the value of this growing demand. Of course, there are some very valid questions to be had in this debate. How aligned are these platforms to your mission and the industry’s core purpose to keep people active? How loyal are their communities and do they create value for fitness partners? Do their models rely on discounting and cannibalisation or do they drive consumer behaviour change and retention? Our advice is get informed!
Time to book the next class? There’s growing consumer demand for multi-venue usage PHOTO: SHUTTERSTOCK/RIDO
