In this special industry outlook feature, leaders share their biggest takeaways from 2023 and what they expect for 2024.
Greta Wagner, the executive vice president and director of Chelsea Piers Connecticut
What lessons did you learn in 2023 as an operator? In 2023, I’ve learned in this competitive market operators must prioritize talent development and investment. This includes enhancing benefits, pay, communication and the work environment to make employees feel valued. Leaders should revitalize retention programs while also focusing on recruitment and onboarding. While valuing team members is crucial, operators should not shy away from holding staff to high standards and holding them accountable for established KPIs.
Where do you think the industry has grown the most over the past year? During the first half of the year, most clubs saw a surge in membership sales and higher retention rates due to pent-up demand for fitness, wellness and community post-COVID-19. However, this demand declined in Q3. The continued growth in Q3 and Q4 lies in clubs offering new services that extend beyond traditional fitness, encompassing overall wellness, nutrition, mental and physical health, and recovery.
What do you expect will be paramount in 2024 for the industry? In 2024, we can expect mainstream adoption of normal wearables, smarter and user-friendly apps, and enhanced online community building. Additionally, biotechnologies like sound baths and forest bathing will emerge in clubs. Operators should embrace these trends, position themselves as experts, and provide guidance and resources. Personalization and result analysis still require club staff, and the synergy of experienced fitness professionals with new tools and trends will elevate members’ wellness IQ.
What’s the best piece of advice you could give to other operators in the year ahead? Maintain a strong focus on your club’s values and culture. The industry is highly competitive, and it’s easy to become distracted by what competitors are doing. While it’s essential to stay informed about industry trends, always bring that knowledge back to reinforce your club’s culture and serve your members. Your brand’s culture, people and the overall experience are what foster loyalty. Remember, not every club is for everyone, so stay true to your identity and values.
Frank Lawrence, the CEO of The Athletic Clubs
What lessons did you learn in 2023 as an operator? As leaders, we have to stay on top and ahead of growth. At The Athletic Clubs, we make sure we have effective daily, weekly and monthly processes of communication, and we have the best operating system to meet our needs. Make sure you’ve got good processes and systems, and you are communicating with your team. I think of James Clear, the author of “Atomic Habits,” and his premise of trying to be 1% better every day. We are constantly reviewing and tweaking our system and processes to be better.
Where do you think the industry has grown the most over the past year? Strength is a big standout from a fitness standpoint. It’s more what I call old school strength training versus the movement of functional fitness which we saw become popular in the last 20 years.
Also, recovery which I, and many others, put into the category of wellness overall. Whether that’s yoga, mindfulness or other practices, wellness really encompasses recovery. Those areas have continued to be the growth areas, and I think they will be for the next year or beyond.
What trends do you expect will be paramount in 2024 for the industry? It’s all about community and relationships. We strive hard in our organization to be the third place for our members — work, home and here. We want to provide that platform for a life well lived, and where our members can connect and build relationships and community. This trend keeps getting stronger and stronger.
What’s the best piece of advice you could give to other operators in the year ahead? Financially, still be very careful about leveraging yourself. I think there’s a lot of economic headwinds out there and probably will be for the next six to 10 years. The economy — even though there are still concerns — is doing really well, and I think that’s helped our industry. I know it’s helped our business. Hang on because it’s moving quickly. Within all of that, work to find those connections and communities. It could be through your staff or your membership. Keep that focus. We spend a lot of time doing things and sometimes we forget why we’re doing those things.
Eric Schmitz, the president of California Athletic Clubs
What lessons did you learn in 2023 as an operator? For me, it was the importance of delivering authentic and exceptional customer service. Nothing can be cookie cutter or corporate because it needs to be keyed into members and their unique needs. This also gives an opportunity for operators and senior level leaders to impart just how important authentic customer service is to the younger generation. It’s really about representing your culture.
Another one is members are using us as their main way for stress reduction. Our clubs are full service, and we offer a lot of programs and amenities. It’s important we offer ourselves as a place to go and be with similarly minded people.
Where do you think the industry has grown the most in the past year? Growth has come from just thinking of the overall wellness of our members, and how we can expand the services we offer. Obviously, physical health is our main thing, but also mental and emotional aspects of wellness.
Pickleball continues to just grow and grow because it addresses so many of those aspects of what’s great about our industry. It’s social, a low entry point — you don’t need a high amount of skill to start playing — and fun. That’s why it has grown, and I hope it sticks around for a long time.
What trends do you expect will be paramount in 2024? I think an interesting trend is this whole concept of biohacking, or people optimizing their longevity. A lot of what that industry has we are also doing. It’s a buzzword and younger people are getting into it. I think it’s going to continue to grow dramatically with potentially different types of saunas or cold plunges. There are so many things tied to health and longevity that are going to grow unbelievably for the next five years.
What’s the best piece of advice for other operators for this upcoming year? Know how you stand out within your marketplace. Know your competition and know it’s likely going to increase. Staff should also be aware of the difference, subtleties and uniqueness of offerings so it’s obvious to potential members. On the flipside, it’s important there’s a market for your specialty.
In addition, remember to take care of yourself as a person so you have the energy to take care of your team. It’s now harder than ever to keep employees. Doing all you can for your mental, physical and emotional well-being can help you lead your team and ensure they are taking care of themselves and their responsibilities.
Maria Gonzalez, the CEO of ClubFitness Greensboro
What lessons did you learn in 2023 as an operator? For us, it was the importance of continuing to create connection with your team, not just as co-workers but as people. Each person on our team has been facing different things either in their career or personal life. Being able to have that core group who knows each of us is there for each other has been huge. We can’t do anything without our team. So, if we’re not taking care of each other, then there isn’t a way for us to make a difference in our business.
Where do you think the industry has grown the most over the past year? There’s a lot of information we all have access to, and a lot of it depends on what technology programs we’re using. The field of technology continues to grow in a very exponential way, and now we’re receiving a lot of reports and information that helps us learn the needs of our consumers better. If we’re able to use that information the right way, it’s going to help us be more efficient, effective and target our members in a much better way than before.
What trends do you expect will be paramount in 2024 for the industry? I think of technology again. It’s great because now we’re looking at not only the way people are exercising or how they’re logging their food for the nutrition part. We’re also looking at the importance of rest and sleep. We’re balancing the well-being of an individual, and how we’re collecting all their information. It helps us serve our members in a much better way, but we have to find those programs and services. They help us collect information and see the overall state of the individual and guide them either through training or coaching to help them live healthier lives.
What’s the best piece of advice you could give other operators in the year to come? Always stay hungry. Continue to grow and educate yourself and be on top of trends and changes that are happening all the time. But also, never shy away from the basics like cultivating relationships with your team and your members. Never push away from the relationships we need within our clubs, staff and the members of our communities.
Mark Miller, the COO of Merritt Clubs
What lessons did you learn in 2023 as an operator? There are so many. I think the biggest is we can no longer fall back on our old thinking. Consumers are using fitness differently. We need to unlearn the ways of the past and try to uncover the new road ahead. Then, be patient and understand we are basically beginners again. Be open to learning, and don’t beat yourself up. Learn, adapt and grow.
Where do you think the industry has grown the most over the past year? One, technology continues to enhance and become more mainstream in our lives. The use of AI has become part of many clubs’ operations.
Two, today’s consumer has changed. What they want from their fitness is much different than before as well as how they consume it.
Three, the design and layouts of our clubs must change and adapt with what people are using today and what their needs are. For example, strength training is at an all-time high.
And finally, staffing has been problematic and challenging in the industry. We must continue to find the right people and show them the benefits of being employed by us. We need to make ourselves a place they want to work.
What trends do you expect will be paramount in 2024 for the industry? Staffing will continue to be an important topic in this coming year. To provide service and hospitality, we need to have the right teams. Also, we must continue to embrace the new trends in recovery, wellness, nutrition, etc. Technology can enhance what we do and free up our teams who can then be more engaged with our members and communities.
What’s the best piece of advice you could give to other operators in the year ahead? Be specific in the way you rally your focus. What’s important to focus on? Choose one to three key things. If you’re not sure, then ask for help. It’s time we all began to normalize asking for help.
Scott Draper, the founder and owner of Club Northwest
What lessons did you learn in 2023 as an operator? Personally, I am continuing to learn to receive. We have big visions here at Club Northwest, and I can easily get caught in the illusion of making those things happen. Force only works for so long and to a certain extent. Intention is everything. If we actively look for all the ways to bring our goals to life, the results are much better. If we come from a place of attraction and collaboration, not only do the effects last longer, the journey itself is truly a joy. I’m not an expert in this area, but I’m open and learning.
Where do you think the industry has grown the most over the past year? I see us continuing to grow in our understanding of our value to others. Here at Club Northwest, we are enthused to see so many fellow operators beginning to venture into serving the whole person. So many clubs are authentically moving past old paradigms and showing up as what a gym can be with passion and compassion.
What trends do you expect will be paramount in 2024 for the industry? As the world continues to move from an understanding of force to an understanding of attraction, we will see our old anthem of ‘no pain, no gain’ shift to ‘no pain, gain.’ At the core of this shift is a growing understanding that each of us is well. Coming to the club is a wonderful way to discover how we each approach well-being differently. Recovery as a growing trend in the industry signals the shift of gyms being thought of as centers of well-being. For those that buy in, the future is full of promise.
What’s the best piece of advice you could give to other operators in the year ahead? Love yourself. The love and well-being you choose for yourself is the love and well-being that heals the world.
