The high-volume, low-price (HVLP) fitness model has fundamentally altered the health club industry by providing affordable membership options and capturing a broader consumer base. As a result, U.S. fitness club memberships have increased by roughly 20% since 2019, and we estimate that HVLP accounted for more than 60% of that growth.
New HVLP 2.0 fitness clubs are building upon the original premise of affordability and accessibility by integrating additional amenities and services previously exclusive to higher-end clubs. This evolution provides additional opportunity to broaden the appeal of HVLP to further penetrate the 75% of Americans who do not belong to fitness clubs.
Key Differentiators of HVLP 2.0:
- Expanded Fitness Programming: Offerings such as high-intensity interval training, yoga, cycling classes, and personal training appeal to a broader member base and cater to varied fitness preferences. This strategic diversification increases club utilization rates and drives higher engagement across multiple demographics.
- Wellness and Recovery Services: Infrared saunas, red light therapy, and hydro-massage beds have become increasingly common, catering to the growing demand for holistic health solutions. These amenities deliver tangible recovery benefits and enhance the perceived value of membership.
- Family-Friendly Amenities: By removing logistical barriers for parents, childcare services and kids’ clubs build loyalty within a traditionally underserved segment. This approach aligns with broader trends in consumer services that emphasize convenience and inclusiveness.
- Technology-Driven Engagement: Digital class scheduling, app-based membership management, and wearable device integration support a more personalized member experience. Additionally, data analytics enable clubs to better optimize service delivery and product offerings.
For investors, we believe the HVLP 2.0 model presents compelling opportunities. Clubs that successfully blend affordability with differentiated, high-value amenities are well-positioned to outperform legacy providers. As these models scale, operating leverage improves as fixed costs remain relatively stable while premium services generate additional profit.
Ultimately, the HVLP 2.0 model is setting a new standard in fitness by balancing affordable monthly dues with a robust portfolio of amenities and wellness offerings. Continued innovation and operational discipline will be essential for operators and investors looking to capitalize on this evolving market.
For more information, please see our equity research report, High-Volume, Low-Price Fitness Clubs Are Driving Growth and Investment, or visit our Equity Research Rewind landing page for this and other topics on our website.