Effects of the pandemic on customer behavior in the fitness industry

On March 16, 2020, the Federal Council declared an extraordinary situation and all gyms in Switzerland had to close their doors. The reopening was followed by regular adjustments to measures and finally a second, four-month lockdown in December 2020. Since April 2021, customers have been able to work out again without interruption, subject to strict rules. The industry struggled through 3G, 2G, 2G+ and additional mask requirements and the protection concepts were repeatedly adapted. Despite the restrictions, the demand for fitness among the Swiss population remained very high. Fitness companies in Switzerland generated a total turnover of CHF 1.37 billion in ²⁰²⁰¹. Compared to 2018, this represents an increase in turnover of around a ^third1. Despite the ongoing mask requirement, 2022 got off to a very good start and the following months were also successful.

On February 17, 2022, the time had finally come and all measures for fitness studios were lifted. We wanted to know from the club managers in the studios what has changed since that day. How has this lifting of measures affected memberships and club utilization? Has the demand for fitness continued to rise?

Since January 2022, club attendance after the pandemic has stabilized at or above the pre-crisis level. Since April, this figure has risen steadily along with subscription sales. Local club managers have observed an increase in demand for fitness since the pandemic, although the online fitness offering has increased massively during the pandemic and many home gyms have been set up. It is assumed that these newly created offers are also being used, but often in combination with a fitness subscription, as some training options can be found almost exclusively in gyms. Similar to before the pandemic, it can be observed that the conversion or reopening of a gym has a positive impact on membership numbers and check-ins increase almost exponentially.

There has been a change in memberships and customer behavior since the pandemic. The number of monthly subscriptions sold has risen significantly since the pandemic. More and more customers prefer a flexible membership and no longer want to commit to a contract for a long time. Members also attach great importance to the fact that subscriptions can be paused at any time. However, the club managers note that with the introduction of monthly subscriptions, the cancellation figures need to be viewed from a different angle. If more monthly subscriptions are sold, the cancellation rate also increases. Due to the fact that customers increasingly prefer a flexible membership, it is often observed that many customers change gyms regularly or only want to train in winter. For this reason, the recovery rate must be given a higher priority. Overall, customers appreciate the fact that they can arrange their memberships as they please. Gyms with flexible and affordable memberships have a decisive competitive advantage.

A higher expectation of cleanliness and hygiene has been observed in customer behavior. Although the measures have been lifted since February, internal customer surveys indicate that customers place even greater value on a clean studio. The devices are still disinfected after use, which is reflected in the high consumption of hygiene materials. Customers are also increasingly approaching staff directly if they observe a breach of the house rules. As a result of this social pressure, the use of a towel and wearing clean training shoes has become even more standard in the studios.

A slight change can be observed in training support. There is still a demand for training plans from club staff, but an increase in external training plans has also been observed. Many young customers buy the training plan they want online and implement it in the studio. Nevertheless, the presence of staff on the training floor is highly valued according to customer surveys.

A change in club utilization can also be observed. Before the pandemic, it was clear that Monday and Tuesday evenings from 5 p.m. were the busiest times. Today, younger people also train in the morning and customer frequency is spread out a little more throughout the week. This is certainly due to the increased opportunities for working from home, which offers members greater flexibility. Due to the absolute increase in customers, the studios are very busy at peak times, despite better distribution throughout the day. This is a further indication that customers want to come to the gym regularly and that there is high demand. Monday to Wednesday are still the most popular training days and evenings in most studios. At the same time, however, customers also note that the gym is too busy in the evening and that some of the equipment is occupied.

The club managers surveyed are of the opinion that the fitness industry has recovered from the pandemic and that demand for fitness will increase. The question is whether the industry is ready for the post-pandemic rush. The fitness industry is struggling to find suitable staff and retain them in the long term. Fitness companies are facing the major challenge of presenting the profession of fitness trainer in a new, attractive light in order to attract the new generation to the profession. Young people attach great importance to work-life balance, which is sometimes neglected due to regular shift work. Incentives need to be created to motivate the next generation for this profession in the long term.

In summary, the Swiss population wants to work out regularly in a gym and prefers flexible memberships. Hygiene and social distancing continue to be important issues for customers, which is reflected in the continued high consumption of disinfectants and changes in check-in procedures. The return to growth in the industry is also resulting in increased staffing requirements, which is currently presenting the industry with challenges.