In 2022, the trend for the growth of the cost of subscriptions in fitness clubs will continue – during the year, the price increase may be at least 10%, and the quarterly rise in price is expected at the level of 3 to 5%. This information follows from the forecast of the Association of Fitness Industry Operators (AOFI), which was received by Izvestia on Tuesday, December 14.
Prices are rising mainly due to the increase in the cost of services for the clubs. This indicator is made up of the staff wages fund (45-50%), rental costs (about 30% of expenses), payment of loans, utility bills, taxes.
It is noted that most of the clubs could not agree on a rental vacation or a reduction in rental rates during non-working days last fall. In addition, some landlords are looking to raise rents in 2022, given the general upward trend in commercial real estate rents. Thus, according to Knight Frank, in Moscow from January to September this year, the average rental rate for office space increased by 1.1%. Payments on loans taken out in 2020-2021 were added to the operating expenses of many clubs.
The cost of the service increased due to the need to purchase personal protective equipment. According to the calculations of AOFI, the costs for these purposes can reach 200-250 thousand rubles per month.
“Prices for subscriptions will rise. Market players have no other choice. But the increase will not be instantaneous, “the head of the Association of Fitness Industry Operators Olga Kiseleva said in a statement.
She emphasized that in addition to the price increase, market players can increase the profitability of clubs by increasing attendance, which was impossible in the context of a lockdown.
According to her, now in many regions the requirement for the presentation of QR codes continues to operate. This prevents the clubs from attracting more customers and is another factor in the growth of the service cost and the subscription price.
At the same time, fitness operators cannot compensate for their losses by increasing the cost of a subscription – it restrains, first of all, the level of the population’s ability to pay.
Kiseleva noted that the industry is “squeezed” “in the corridor between maintaining profitability and the client’s ability to buy a subscription at such a price.”
The specialist added that the increase in the price of season tickets will help market players to increase the profitability of clubs, which “fell catastrophically” in 2020-2021.
AOFI recalled that in October they sent letters to Prime Minister Mikhail Mishustin and the governors of Russian regions with a request to support fitness clubs. The letter mentioned, among other things, measures to reduce rent or “rental holidays” in the regions where the activity of fitness centers has been suspended due to anti-coronavirus measures.
In early August, the National Fitness Community (NSF) told Izvestia that the backbone enterprises of the physical culture and health sector will be able to take advantage of preferential loans. It was indicated that on July 28 the government allocated another 2.04 billion rubles for this purpose.
On July 1, AOFI reported that sales of club cards and traffic in fitness clubs in the first half of 2021 did not reach the level of the same period of 2019. Club attendance was below pre-crisis levels, which is due to the seasonal factor and restrictions on the background of the coronavirus.
On June 29, the NSF said that the fitness industry market will lose 15% of players due to the situation with the spread of COVID-19 if the industry does not provide state support.
The Association of Fitness Industry Operators (AOFI) is a non-profit organization uniting businessmen involved in the Russian fitness industry. It includes 1,450 market participants – large chains and the bulk of single fitness clubs in 76 cities of Russia.
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
