The document discusses the rise of the low-cost gym sector in transforming the European fitness club market. It notes that low-cost gyms operate with minimum fees that are 50% lower than industry prices, focus on simplicity and affordability over amenities, and leverage heavy technology and web use. The growth of the low-cost gym sector has been driven by changing consumer sentiment towards traditional gyms and a preference for more affordable options with lower attendance requirements.

1. Strategic insights into the European
Low-cost Gym Sector
IHRSA 2010
Barcelona
Ray Algar

2. www.oxygen-blog.blogspot.com
2

3. How the low-cost gym
sector is transforming
the European
club market

4. MINIMUM OF
50% LOWER
THAN
INDUSTRY
PRICE
SCOPE TO HEAVY
OPERATE 24 TECHNOLOGY
HOURS AND WEB USE
MY
DEFINITION
OF A LOW-
COST GYM
ABILITY TO
OPERATE CLUB GYM-ONLY
WITH A SINGLE PROPOSITION
PERSON

5. SIMPLICITY
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
LOW
ATTENDANCE

6. SIMPLICITY
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
LOW
ATTENDANCE

7. I Care

11. Consumers now have
experience of
low-cost services

12. “Fly for the price
of a pair of jeans”
12

13. 13

14. “Spend a little, live a lot “
14

15. 15

16. 16

17. Think of a sector…you will
find low-cost

19. 300
million units
annually by
2013

20. “Quality up, cost down
… way down”

23. SIMPLICITY
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
LOW
ATTENDANCE

32. SIMPLICITY
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
LOW
ATTENDANCE

33. Join online
and avoid me!

35. “When I need
advice, I will
pay for it”

36. SIMPLICITY
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
LOW
ATTENDANCE

37. 37

39. SIMPLICITY
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
LOW
ATTENDANCE

40. 40

41. www.reviewcentre.co.uk
41

42. Word of mouth
on steroids

43. SIMPLICITY
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
LOW
ATTENDANCE

46. “Why am I paying
for a club I do not
often use?”

47. “Why am I paying
€60 just to use
a treadmill?”

48. What do low-cost
gym consumers say?

49. “I pay €17, which is a
giveaway (big smile).
It’s for free really!”

50. “I have never been to a
gym that is €18 before. I
thought I would find a
lot of broken quipment”

51. “There’s plenty of staff
around. They’re
incredibly helpful
and friendly”

52. “I get an email; I think
it’s once a week. They
tell you their top
tips...(for example)…”

58. 58

59. 59

60. 60

61. 61

62. 62

63. 63

64. 64

65. 65

66. 66

80. ?

82. OPERATIONAL
EXCELLENCE
MEMBER
INTIMACY PRODUCT
LEADERSHIP

87. Presentation: oxygen-blog.blogspot.com
Report: budgetgymresearch.ning.com
Google: “Ray Algar”