Ben Davies, Founder and Managing Director, Blue Fitness
With a small country like New Zealand major events, whether it be an Earthquake, Rugby World Cup and in 2020 the lead up to the hosting of the America’s Cup, can have significant influences in the mood and the confidence in the market. Sky scraping apartments and new hotels are set to change the ever-developing Auckland skyline and bring more internal and external tourists and business to the city.
Increased competition and opportunity will improve service and delivery standards across all sectors, including the Fitness and Leisure Industry. 2020 will see club operators face two main challenges. Firstly competition across the board is placing pressure on clubs offering quality services, but the positive, being the second challenge is that the now very well educated member is more than happy to pay a premium for a specialist offering, be it in the club fit-out quality, personal training, group training or specialist services. This is very evident in the programming and philosophy of the 24hr chains transitioning from a base service to a specific coaching model.
Boutique offerings inside the club, to differentiate, that add service and achieve a higher yield will become the norm. Unfortunately, there will be consolidation at clubs unable to transition and the days of the small-town, local, standalone gym that is not differentiated in any way are numbered.