How the Industry’s Brightest Minds Are Rethinking Retention, Pricing and Performance in the AI Era
From AI breakthroughs to pricing strategy overhauls, the 2025 Club Solutions Leadership Summit in Puerto Rico delivered powerful insights for fitness industry leaders looking to future-proof their operations. Here are four of the most impactful lessons from this year’s sessions:
AI Is Reshaping Every Layer of Club Operations
Artificial Intelligence is no longer an emerging trend — it’s a must-have tool driving smarter decisions and operational efficiency.
Midtown Athletic Clubs revealed a game-changing insight uncovered through AI: Day 15 is the new Month 4. By analyzing check-in and purchase behavior, their team found that member engagement between days 15-21 is a make-or-break window. Those who drop below two visits per week during this period are significantly more likely to cancel before month 14 — the threshold at which members are most likely to stay for years. Without AI, this behavioral inflection point would have remained buried in the data.
Other clubs are deploying AI agents trained on brand-specific protocols to handle everything from sales calls to onboarding and collections. These “AI employees” streamline low-value tasks so human teams can focus on personal, high-impact interactions.
Operators are also using tools like Microsoft Copilot to automate financial reports and leveraging machine learning to build predictive marketing audiences — making campaigns more effective and budgets more efficient.
“One key takeaway that really resonated with me was the growing impact of AI in our industry,” confirmed Steve Padis, the CFO and EVP of strategy at Barry’s. “It reaffirmed the importance of proactively evaluating where AI can create real value at the HQ level — from improving operational efficiency to enhancing client experience. It’s clear we need to stay ahead of the curve by exploring how these tools can support our teams and our clients.”
Pricing Is Your #1 Strategic Lever
In a competitive and often saturated market, pricing is not just a finance function — it’s a strategic growth tool. With unit expansion more difficult than ever, health clubs must optimize the revenue potential of their existing customer base. That starts with rethinking pricing.
One of the biggest barriers to smart pricing? Operator mindset. Many leaders fear pushback or member loss when increasing dues, but consumer research and data analysis often reveal otherwise. In many markets, members are more tolerant of pricing adjustments than assumed — especially when the perceived value aligns with the increase.
Leaders at the Summit explored several innovative pricing models, including:
- Dynamic Pricing: Adjusting prices based on seasonality, time of day, or purchase urgency (similar to airline and hotel models).
- VIP Tiers: Creating elevated membership levels for the top 25% of members who already drive a disproportionate share of ancillary revenue.
- Shared Memberships: Allowing family members or friend groups to share access under one plan, increasing convenience and perceived value.
- Daily or Pay-Per-Use Options: Offering flexible access for casual users while still monetizing visits.
- Time-Based Billing Flexibility: Introducing weekly or bi-weekly billing cycles to make premium pricing feel more manageable.
The common thread? Successful pricing strategies are rooted in data, not assumptions. By using household income, spending patterns and price sensitivity studies, clubs can better understand what members are truly willing to pay — and how best to structure pricing tiers to meet them where they are.
Retention Is Psychological — and Personal
Retention isn’t just about great service anymore — it’s about psychology, design and data-driven personalization.
Leaders pointed to apps like Duolingo, Zwift and Spotify as inspiration, where gamified “compulsion loops” — including streaks, challenges and rewards — keep users coming back. The lesson for clubs? Embed these behavioral cues into the member journey to make engagement habitual.
Beyond the tech, creating “sticky” experiences still hinges on community, personalization and seamless service. But what’s new is the emphasis on designing those moments with intention, using tools and tactics from outside industries to elevate loyalty.
Success = Focus + Discipline
In a keynote packed with inspiration, John Lee Dumas, the host of the popular podcast Entrepreneurs on Fire, distilled the habits of the most successful business leaders:
- Productivity: Create the right things every day
- Discipline: Be a disciple to your plan
- Focus: Follow one course until success
His message for club operators was clear: Find your differentiator, stay in your lane and tell your story with authenticity. In a world of distraction, clubs that stay true to their mission — and communicate it effectively — will rise above the rest.
For details on the 2026 Club Solutions Leadership Summit, contact Rachel Chonko at rachel@peakemedia.com.
