It has not just affected the travel and tourism industry, but the fitness studios around the globe have been hit hard by the disruption of COVID-19 as well. Gyms and fitness companies were declaring short-term closure, even before governments issued restrictions to prevent the spread of the virus,
At the beginning of March, Barry’s Bootcamp was forced to close all fitness studios worldwide. They closed in the US, Canada, Sweden, Norway, Milan and Dubai before adding London to the mix.
In the past two weeks, “almost 90% of our 30,000 gym, studio and wellness partners across 30 countries have indefinitely closed their physical locations,” ClassPass CEO Fritz Lanman revealed. Due to the global hit from COVID-19, many businesses are at risk.
Peloton was also affected, closing its public studios in the US “out of an abundance of caution,” while SoulCycle halved the number of vacant bikes in its studios as a safety measure. Both have now closed their studios.
As the virus continues to spread, its impact affects millions of workers within the physical activity industry, including the self-employed, business owners and employees. This level of instant financial unpredictability is unprecedented for the sector.
How Are Fitness Companies Adjusting to These Challenges?
Several businesses have adjusted their memberships to retain customers, others have switched to online classes entirely. For example, Fitness World – operating three brands with 229 gyms across 3 countries – announced it would close all of its clubs as of the 11th of March. This comes alongside the company simultaneously providing compensation to its members during this closing period.
Fitness World has given its members the possibility to receive a €65 gift card to spend on all products in the gyms, whilst continuing to pay for the gym membership during the closing period. Another option was to receive a 20% discount off the membership for 6 months after gyms are reopened. Members can also pause the membership or continue paying without any compensation.
Some fitness clubs – such as Neoness, which are located in France – are offering video classes and tailored home workouts both online and through their app, encouraging their members to stay active throughout this staying at-home period.
While the majority of studios and gyms in countries experiencing isolation measures have been closed, not all are jumping on the online class bandwagon. SoulCycle, for example, is offering bikes for pre-order with a price tag of $2,500. The cycling studio isn’t currently providing members with online classes but does have plans to introduce on-demand virtual classes later on in the year.
How Might COVID-19 Have an Influence on Consumer Habits Long-Term?
In spite of the immense threat to a great deal of fitness businesses, the digital workout market has experienced an influx of customers leaning towards online at-home apps.
According to a recent report released by Pinduoduo, a leading e-commerce platform, sales of fitness equipment including push-up bars, power twisters and stretch ropes rose sharply in the past two months.
As people adjust to the likelihood of months at home with no physical connection to the outside world, they will be presented with many online opportunities to keep active. This exposure has the potential to change habits, behaviors and expectations relating to the way people will choose to stay active when we eventually reappear from isolation.
What Opportunities Are in the Near Future for the Fitness Industry?
The global health club industry has generated $94 billion over the past 12 months, up from $87.2 billion the previous year. With a global growth rate of 8.7%, these positive signals show that many players in the fitness industry will recover once the pandemic is over – but just how long that will take is up for debate.
Typically, January is the most profitable month for fitness centers. A lot of people join the gym at the beginning of the year in an effort to start their fitness journey and create new habits. However, between 25-50% of these people will quit after just three months.
Many people find it challenging to workout from home, because they don’t have the right equipment and facilities. However, with so much spare time on their hands, many of those that don’t usually work out are now finding the chance to get active at home.
Given this uptick in activity at home, we could potentially see a spike in new interest in consumers to sign up to the gym once they reopen. With the habits of an active lifestyle put in place during quarantine, many could find new value in the gym once they get the chance to go back.
On a positive note, when we overcome this pandemic, one can assume that people will have the urge to start a new sports activity or go back to their usual fitness regime. Due to a lack of social interaction, this could potentially have a positive effect on gym participation, as people may want to shed the excess kilos after this very difficult period.
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TrainAway is health and fitness company, providing an app where you can search and purchase day passes, to access a gym local or your travelling destination. TrainAway have first-hand experience in what is currently happening in the fitness industry, due to having 1,500 gym partners within 45 countries.
