All Things Fitness and Wellness

The Price of Inactivity: Anton Severin Uncovers the Barriers to Fitness Access Worldwide

• Krissy Vann

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In this episode, Krissy Vann sits down with Anton Severin, Vice President of Research at the Health and Fitness Association, to explore the latest insights on how fitness affordability can shape the future of public health and access to exercise.

Key Points:

-The research reveals that affordability is a leading barrier to fitness participation, with 61% of non-customers citing cost as a key obstacle.
-Fitness facility customers are 56% more likely to meet the WHO's recommended activity guidelines, highlighting the unique value of structured exercise environments.
-A 10% reduction in membership fees could significantly increase participation, with the potential to generate billions in health cost savings and productivity gains.
-The research findings demonstrate the importance of addressing affordability through policy support, as the industry alone cannot solve this challenge.
-The consistency of the trends across 10 countries studied underscores the global nature of the issue and the need for coordinated advocacy efforts.

Chapter Markers:
0:00 - Introduction
2:05 - Exploring Anton Severin's Fitness Affordability Research
7:25 - The Impact of Affordability on Fitness Participation
12:35 - Quantifying the Potential Impact of Price Reductions
18:01 - The Societal and Economic Benefits of Improved Fitness Affordability
26:18 - The Future of the Fitness Industry with Affordability Policies
28:42 - Upcoming Research and Industry Support

Unknown:

The 61% basically represent the average country in this sample, the population of non customers in that country indicated that affordability was a and cost was a key barrier to why they did not patronize a fitness facility.

Krissy Vann:

This is all things fitness and wellness, uniting industry thought leaders and fit influencers on the mission to inspire innovation and encourage people to live a life fit and well, today we're exploring how fitness affordability could shape the future of public health and access to exercise. Joining me is Anton Severin, Vice President of Research at the health and fitness Association, to share insights from their latest report reversing the physical inactivity crisis fitness affordability as strategic policy, we'll dive into how reducing membership costs could increase physical activity, the broader economic and community benefits of better access, and what steps both policymakers and fitness operators can take to drive change. If affordability is one of the biggest barriers. How do we move the needle on making fitness accessible for everyone? Let's find out, but before we get to it, be sure to hit like and subscribe. We have new podcast episodes weekly featuring industry thought leaders and influencers. I'm your host, Krissy Vann, and this is ATF W. I am really thrilled to have Anton Severin here at time of recording. We're wrapping up the month of January. We're gearing up for HFA in Vegas in March, and one of the things that we had at last year's Ursa now the health and fitness association was the rebranding of the organization, and I know along with that, there's been a little bit of shift in focus into what you want to accomplish. And something, of course, is having more research available to those in the halo industry to really advocate for ourselves as this preventative part of healthcare and this intersection of healthcare and health club. So Anton, first of all, thank you so much, because I know that you play a huge role in bringing this research to life.

Unknown:

Thanks for having me on Krissy. Really appreciate it. Now, one

Krissy Vann:

of the subject matters that we talk about endlessly here at ATF W with gym owners, is the physical inactivity crisis. Every single conference that you go to throughout the year, everyone's trying to figure out how to attract that other 80% now we've seen some slight movement in the needle that there's a few more coming in the doors, but the only way we're going to accomplish more bodies in the gym is understanding what the barriers are. And your latest research has really highlighted, on a global scale how affordability plays a role. So first of all, for those that aren't familiar, tell me what is the latest research that you published, and what the overall scope is that's available for people to dive into.

Unknown:

So earlier this week, we released our price elasticity research that we've been working on for for a couple of months here. So this really looks at, as you said, barriers to engaging with the with our industry, for for the large chunk of people in countries across the world who are currently not taking advantage of the benefits of structured exercise that we we provide at scale, yeah, this research really came about, you know, driven by The pressing challenge that you mentioned there, like societies worldwide struggling with with worsening public health trends, but also connected to that, right? This is a rising healthcare cost and kind of the downstream negative societal effects that come from, from the public inactivity crisis, right? So at the same time, we know that physical activity is a proven solution, and that professionally guided, evidence based exercise, like the programs that are provided by our industry at scale, you know, plays a critical role in reducing chronic disease risks, for example. So the key question then really became like, how can we encourage more people to engage with the industry to help reverse this crisis. So So we've seen from prior research that that cost is often identified as an important barrier. But you know, we know that affordability isn't something that the industry alone can solve for, right? Like we know that many, many businesses operate on tight margins, making price reductions difficult without external support, like that would risk closures and really reduced access rather than expanded access, which is, you know, the opposite of what we what we need. So consequently, we know we need a support of governments and policy makers to address the question of affordability, but when we do engage with governments, it is not enough to highlight the health benefits of exercise. We really need to present a solid Return on Investment Case policy makers need to hear hard data showing how greater. Affordability could lead to increased participation and the improved health and economic benefits that would that would flow from that. So that was the idea behind the research. We wanted to quantify that relationship, thereby helping, helping make the case to four policies like, for example, tax incentives to make structured exercise more accessible now. So, so it's really about government having a key role to play here and producing the research that provides the evidence base to to to encourage them to act.

Krissy Vann:

Yeah, you highlight it so well there, because this is tremendously valuable information and necessary information. I've had the opportunity to join on a couple of occasions on Capitol Hill in the states to see industry participants advocate for the personal health investment today act, and it is one of the most common questions that they get back. You generally never get to actually speak to the member of Congress directly. It's normally someone that's below them that then has to present the case for you. And they do need these evidence based questions, because at the end of the day, everyone knows in their mind that exercise is a key to physical and mental well being. But what they need to know in order to move this forward is, is it going to save money? Where is it going to move the needle? It ultimately does come down to dollars and cents. So let's get into some of this research, because it is so crucial for the industry. And I want to highlight before we dive in, that if you are looking at these HFA reports, they have divided it up by country. I'm based in Canada, so similarly, we have a tax line that our Fitness Industry Council of Canada has been trying to move the needle on so this is value information for not just the US market, but your research shows that cost obviously a significant barrier, coming in at 61% of non customers saying that it is a barrier. So what surprised you most about the impact of affordability on access to fitness facilities was this number surprising? So going

Unknown:

into the product, we certainly had a hypothesis, right? That that fitness and exercise products are like really nearly every product or services known to men, somewhat price elastic, right? Meaning that if prices go up, demand goes down, and vice versa. So while we had observed some of this in previous research. You know, HFA Does, does annual surveys around motivations for engaging or not engaging with industry, both US and in other places and costs, consistently comes up as one of the leading barriers to entry, right? So, so while we knew that going in, I was somewhat surprised to see that it comes how it consistently ranked, ranked as a top three barrier or obstacle in all of the 10 markets we serve it so we including in the service countries in both North America, Europe, in Middle East and across Asia Pacific. And consistently cost was right up there as one of the leading barriers, in many cases, surpassing even other commonly cited challenges, like time availability, convenience or gym intimidation. So you know, we, the 61% basically represent the average country in this sample, the population of non customers in that country indicated that affordability was a and cost was a key barrier to why they did not patronize a fitness facility the exact percentages range, you know, from a low of 45% in Spain up to to, you know, above 70% in Australia, but, but yet, average, on average, it was 61% of respondents who indicated, this is a leading barrier.

Krissy Vann:

I actually found that quite surprising as well. When you look at what typically are the things that stop individuals, and mainly because we know that there's fitness facilities, generally on every corner of wherever you're joining us and wherever you live. And there's tends to be a wide variety, from low cost, high value gym to the luxury sphere. And those HVLP models seem to be so accessible. So I wonder if it's a perception cost issue, like if the people actually took the time to take the tour and learn, or the sins of Jim's past, where people thought it was so difficult once you're tied in a contract and they're going to take all your money, those are just curious questions. But I'm like, you know this information is so valuable for how they put their perception out there? Because truthfully, the ultimate goal is to just get people moving in general. But when you look at hvlps, it is not much of the bottom line for most individuals, they are probably spending more indoor dash fees than they would for those gym memberships in the month. But that's my two cents, which I'm allowed to do. You're the researcher, so we'll keep you to the science. And on that note, of the science, I actually loved this statistic. And again, this is just a an average, obviously, because you did pull a bunch. Of countries, but the fitness facility customers are 56% more likely than non customers to meet the who so World Health Organization's activity guidelines. It shows what we do in our doors work. So how did your team arrive at the finding, and what does it reveal about the value of structured exercise?

Unknown:

In order to make the connection right, that that not only is, you know, the imperative there to increase risk of activity, but also that our industry really has the potential attack as a key facilitator of this. Right, we needed to to prove the as you know, there is a significant difference in in activity levels between those who engage, who are customers and patronize their facilities and those who are not right. So, so as part of the survey, we did, you know, we've surveyed over 11,000 people across these 10 countries. We asked them. We asked as these adults to report their their exercise frequency, exercise duration and intensity, to calculate MIT me team minutes, so metabolic equivalent minutes, and assess activity levels against WHO guidelines, which is similar guidelines. That's what's used in the US and in Canada. And we then categorized respondents into fitness facility customers, so those who had a membership or package or class in the past month, and contrasted them with non customers. So the results, as you say, were striking. So looking at the entire sample of 11,000 respondents, about eight in 10 gym customers did meet the recommended activity levels, compared to just over 50% of non customers. So while the gap, that gap certainly varied between countries, gym memberships were, on average, yeah, 56% more likely to meet recommended activity levels. So you know, this really underscores the unique role of structured exercise environments. So Jim offers offers more than just equipment, right? They provide accountability, community and motivation, which are really difficult to replicate outside a dedicated fitness setting. And so the hope is here that for policymakers, these findings will highlight that facilities are not just commercial enterprises, but are really essential public health resources that help individuals achieve and sustain active and healthy lifestyles.

Krissy Vann:

So we know that there is the evidence there, through this research, that what is happening in the gym walls works. And we also know from the first question that cost is the barrier. So it may have some health club owners gym owners thinking, Well, what is the magic number? How do we move this needle? And luckily, you looked into that as well. So your study demonstrates that a 10% reduction in membership fees could significantly increase participation. So can you walk us through because the whole part of the study was about this elasticity of cause. So how is that calculated? And what might that mean for the industry? Because it sounds like a strong potential, and I don't want to take the answer for you, but I think of it on two fronts. We're fighting for incentives. So could that make up the 10% does it necessarily have to come out of the gym owner's pocket? Walk me through it?

Unknown:

Yeah. So to in order to calculate price elasticity, we asked the those non customers who we had identified as being price elastic, meaning they had indicated cost as being a top three barrier to why they choose to not be a customers. And we asked them about their willingness to join at varying price points, starting with a typical membership price for a standard fitness facility product. So for example, in your home country of Canada, you know, we had 62% of adults, non customers, in urban areas, which is an estimated 10 point 9 million adults identify cost as a primary reason, as a primary barrier. So among these individuals, we tested the willingness to join at these different levels of price reduction, and the results showed that up to 2.5 million Canadians could be motivated to join with a 10% discount. Now we also tested it at larger discount levels, and while they could theoretically attract more customers, the data does suggest diminishing returns beyond that sort of sweet spot of 10% discount. So I would stress, though, that while this figure represents a theoretical outcome based on stated intent in a kind of hypothetical scenario. Uh, even a smaller share of conversions could, you know, translate into hundreds of 1000s of new members experiencing the benefits of structured exercise? Yeah,

Krissy Vann:

that 10% sounds like it could generate quite a positive ROI, obviously, from the business side and to the overall thing that we're all trying to hack. How do we get more people moving, we know that anyone that's walked into a gym and had the benefits of what structured exercise offers, it's contagious. So I feel like if we get a few more, even the ripple effect can be so outstanding. But your findings on the price point here suggest that women are particularly responsive to price reductions. So did your research and cover why this group experiences higher barriers, and what opportunities does this create for fitness businesses, so

Unknown:

in some of the countries, but not all, we assert, observe these interesting differences in receptiveness to price discounts between certain demographics, so between genders or between income groups. So So for example, the survey results for for the US showed a larger impact from price reductions for for lower income groups compared to middle or higher groups, which is not too surprising. But then we also saw in some countries, like including in Canada, a larger impact from price reductions for women relative to men. Now exactly why that is? It's unfortunately a question that goes beyond the scope of this research, but still, what it does do is emphasize the importance of affordability as a lever for expanded access, particularly for for underserved populations, right to who may, for one reason or another, face greater barriers to participation than others, but more research is needed there to establish exactly what those reasons might be. You just kind

Krissy Vann:

of have me thinking there, because obviously you did look at numerous countries. Did they all kind of follow the same pattern, or were there any outliers that you found surprising in some of the research? Those certainly

Unknown:

one of the striking takeaways from the research, like how how consistent the trends and the themes were across all of these 10 countries. So in all of the 10 countries, we saw costs being identified as a leading barrier to entry across all countries, we saw that the likelihood of meeting recommended physical activity guidelines were about 50% higher in amongst consumers versus non consumers. It differed slightly. For sure, like European countries tended to have a slightly smaller delta between customers and non customers. But by and large, the trends were the same. And similarly, when we did the price elasticity analysis, 10% really merged as as the sweet spot with around 14% of those those prices elastic non consumers, indicating a willingness to join at that 10% discount level.

Krissy Vann:

I find that just really interesting, because I know it's like each one of these countries has this version of what they are advocating for in regards to government policy, and we're basically championing the same message. And so I'm sure anyone listening is realizing, again, this research is so valuable now you have it evidence based, and if we're all championing the same message collectively and getting louder and louder because that. I mean, we don't need to go into pandemic years, but it's kind of where we lost out when there were organizations like the restaurant industry and things like that, were able to lobby so well because they were so banded together. So I'm like the fact that this research has such a steady theme throughout tremendous opportunity here. I think

Unknown:

that's a very strong, strong point our research. You know, that's certainly the goal. The goal of that I have is that it will ensure that going forward in the fitness industry, do have a seat at the table, and that we will be part of shaping policy instead of reacting to it. But it's important to stress, right, that the work is only possible with the support of our members, right? So by by investing in research, the industry is really investing in the future, right, ensuring that fitness is recognized, not just as a consumer service, but really as an essential public health solution that delivers measurable returns to to society? Yeah,

Krissy Vann:

well, and that kind of just leads in perfectly, because I know the research and the report highlights those societal benefits, health savings, improve life satisfaction, Community Trust. So what are some of the key data points that were found from your modeling that gym owners might find compelling in regards to those societal benefits that we know our crew. To our overall well being.

Unknown:

Yeah. So, so for this part of the research, we so we partnered with global consulting firm Portus consultancy, and so they've developed a proprietary model to to measure this so called social return on investment, right? And using that model, we we could estimate that a 10% price reduction across all these 10 markets that were covered in the study has the potential to generate up to$5.9 billion US, dollars in direct health cost savings, and an additional $12.1 billion in productivity gains, right? So again, that is the total for the combined 10 markets. Again, we can go back and look at Canada as an example. Here. In the case of Canada, the 10% reduction could could, as I said, motivate around 2.5 or up to 2.5 million new customers that, in turn, could help prevent somewhere around 77,000 disease cases annually and help avoid more than 500 premature deaths each year. And you know, further further down, down the funnel, we saw that these improved health outcomes could, in turn, translate into about 1.4 billion Canadian dollars in annual health savings. And in addition to that right, we also looked at things like perceived well being and Community Trust and and for those metrics, we saw that we could achieve somewhere around 400,000 Canadians that could could experience improved life satisfaction, and almost as many that could could experience enhanced community trust. Wow. So, so the impacts are really broad across, you know, all dimensions, health, economic and societal. And so that's that was really like interesting findings of the research, yeah,

Krissy Vann:

well, and I mean that societal component is so much of what's being pushed now, even just from a consumer driven marketing narrative. And I think it is so smart. I've talked about it a million times, but with the Surgeon General declaring the loneliness epidemic and the ripple effect of the fact that we don't have third spaces, and so this is just such a natural solution that we already have the structure in place. But again, it's just that recognition and support and reducing the barriers to get more people in the door. I know you touched on it there, but there is a huge economic advantage here, if we get more people moving 1.7 billion in additional consumer spending, 81,000 new jobs from price reductions. Can you talk more economically, how it may benefit countries? And again, was this something that was consistent among the countries, or are there some that have more to gain from getting more people in the door?

Unknown:

Yeah. So you know this. This really ties back into the importance of bringing data back arguments into your conversations with with policymakers and government officials. Right? These are numbers are really key. So, so the numbers that you cited, there are from, from, again, the Canadian specific analysis, that the numbers certainly varied between the countries. Some countries like the US, have, you know, an exponentially larger, or could see an expression exponentially larger impact. But, you know, taking the Canadian example, economically, the potential for increased participation that could come from a 10% reduction could generate an estimated 1.7 dollar Canadian dollars in additional consumer spending. So that is direct expenditure from new consumers, which was calculated based on reported spending patterns of current consumers, but but also right like it, could create up to 81 or more than 81,000 jobs. So that is both direct jobs within within the health and fitness facilities, but as well as indirect employment in supporting industries that would be created by these new customers. So you know, by lowering barriers to entry here, governments again, have an opportunity to not only boost physical activity levels, but also to generate broader economic benefits, right, including job creation and increase crease productivity. We talked earlier about the productivity gains that could be stem from this. So it's really a reminder that the fitness industry is deeply interconnected with with both local and national economies, right? So, so it should really. Make as a powerful ally in driving both public health as well as economic development. Do you

Krissy Vann:

happen to recall where some of those us numbers were lying on that front especially, I mean, even we can take a pause if you happen to have it handy, because I am just curious. Obviously, it's just such a huge market, so I imagine it's an impressive number. Not to downplay us over here in Little Canada, but

Unknown:

so, yeah, so, so you know, in the US case, similarly, we could see that this 10% reduction could translate into an economic opportunity of around 12 point 3 billion US dollars annually, as well as creating more than 200,000 new jobs in direct as well as directly, wow,

Krissy Vann:

so we're talking huge numbers, and those are the ones to your point entering that conversation, that are the ones that are going to give us the best potential to actually move the needle in regards to these policies. So as we kind of round out the conversation here, if your research recommendations were fully implemented, what would the future of the fitness industry look like? And I mean, I get that your research database science based, but give me the hypothesis there of how it could transform communities globally.

Unknown:

Sure. So, so yeah, if, if governments were to facilitate even a modest price reduction for fitness services, the potential impact could, could be significant, if not transformative, right? So not just for the industry, but for public health, economies and communities around the world. So the data that we've produced here suggests that increased affordability could bring millions of new participants into structured exercise, which would, as we've seen here, improve physical activity levels and drive better health outcomes like that. Said it is important to recognize that this is a theoretical outcome based on price elasticity modeling. But while the fightings provide a compelling case for policy action, they do reflect right stated intent in a hypothetical scenario, and do not necessarily account for other variables, such as behavioral barriers, consumer habits or market conditions. But as as we talked about before, like, even, you know, somewhat less, lesser shift in behaviors from this could still have, you know, very significant impacts. So even, yeah, even if only a portion of the projected impact is materialized, the benefits would still be be substantial with lower rates of chronic disease, reduced healthcare costs and stronger and more resilient industry as well. And you know, who knows? At a community level, in the scenario, you could see fitness facilities increasingly become positioned as vital public health hubs, you know, helping people of all backgrounds grounds, access the life changing benefits of structured exercise. So I think the opportunity is really there. It's now a question of whether governments and policy makers choose to act on the evidence.

Krissy Vann:

Yeah, without question. I know that obviously this research was months in the making to put together before it's actually released. Are you able to share anything that you are working on in 2025 that the industry can look forward to not only consuming, but to your point earlier, that helps reiterate why supporting HFA, for example, is so beneficial to the industry as a whole.

Unknown:

Yeah, so we are, you know, I think we can, you can broadly divide our research into two buckets, right, like one that's more geared towards operationally, you know, guiding individual businesses in their decision making by providing, you know, benchmarking tools and and, you know, insights into consumer behaviors that will certainly continue, but as we move forward, we will certainly, you know, lean heavier into the the sort of research that help inform our advocacy efforts as well, thereby, you know, strengthening our ability to speak on behalf of the industry to policy makers in Washington, as well as in in states around this country and as well as capitals around the world.

Krissy Vann:

Brilliant, well, Anton, I know that you're coming off a busy week, having just put this research out publicly, and I just so appreciate that you were able to carve the time out here at ATF, W, and I look forward to learning more from you as the year progresses. I really appreciate your time. That

Unknown:

was a pleasure to be here. Thank you, Krissy.

Krissy Vann:

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