Global leisure insight from Ray Algar, a UK strategic marketer

Interview with Theo Hendriks, CEO of Sports & Leisure Group

blog@oxygen-consulting.co.uk (Ray Algar) — Thu, 12 Nov 2009 04:56:00 +0000

This is another of the 'choose a question' interviews that I filmed while at the IHRSA European Convention in Dublin.

This interview is with Theo Hendriks, CEO of the Sports & Leisure Group in Holland. While in Dublin, Theo received the Annual European Club Leadership Award. This goes to an individual whose leadership has advanced their company and the club industry at large.

During this interview, Theo talks about selling some of his clubs to pay down debt, the trends impacting his business and his future plans.

This is a lovely interview as it is very future-looking and he gets very excited about his plans to drive across the United States and Canada.

Some of the questions asked:

1 What are the key trends driving your business?

2 Why is the budget club trend so big in Holland?

3 How will your business be different one year from now?

4 Can the business now run smoothly without you?

5 What would colleagues say is your best skill/ability in business?

6 What advice can you offer to someone setting up a business in 2010?

So this is how you encourage people to take the stairs

blog@oxygen-consulting.co.uk (Ray Algar) — Sun, 08 Nov 2009 21:07:00 +0000

This is so clever – changing peoples behaviour through fun

Posted via email from Strategic Leisure Insight from Ray Algar

Six minute video interview with Dag Lee, Chairman Taipan Invest

blog@oxygen-consulting.co.uk (Ray Algar) — Wed, 28 Oct 2009 22:18:00 +0000

I've just returned from the IHRSA Convention held in Dublin. While there, I took the opportunity to grab a few people and ask them their views on business. However, there was a little twist. I prepared 50 questions on cards and they had to call out a number and then give me an immediate response to the question - not so easy, when someone is pointing a video camera in your face!

This first interview is with Dag Lee, who is now the Chairman of Taipan Invest. Dag is also a non-executive board member at Actic, a private equity owned fitness chain operating in Sweden, Norway, Finland, Iceland and Germany. Dag's former role was CEO at SATS, the Nordic health club group.

Dag had some tough questions. Here is the result:

Question themes:

Dag talks about the SATS 'Core Model' which is the SATS corporate 'bible' which all employees are taken through, 'MySATS' (a member induction programme), and finally, the best business idea he never implemented.

Apologies for the video 'shake' at the start.

Short interview with Rasmus Ingerslev, CEO, Wexer

blog@oxygen-consulting.co.uk (Ray Algar) — Tue, 27 Oct 2009 10:26:00 +0000

This is another of the 'choose a question' interviews that I conducted at the recent IHRSA European Convention in Dublin.

This interview focuses on Rasmus Ingerslev, CEO of Wexer, an online health and fitness community that launched in early 2009. Rasmus is a very interesting guy who founded Fitness dk, a leading chain of Danish health clubs, which he left to develop Wexer. Rasmus is also a former elite athlete, having represented Denmark in Karate. In this interview Rasmus discusses how he has brought the discipline required to compete as an international athlete into the world of business.

Interview themes: The web (internet) trends, competition, ambition and personal drive.

Sport Conference Athen

blog@oxygen-consulting.co.uk (Ray Algar) — Tue, 20 Oct 2009 09:10:00 +0000

Recently I returned from the Sport Conference held in Athens where I was asked to deliver two presentations for Greek health club managers and owners.

Leading up to the conference, I worked with Panos Bazos on two key presentation themes. Panos is a leading leisure consultant to Greek club owners, working with Holmes Place and other brands.

The presentation below looks at the low-cost trend and how it is disrupting established industries, including health and fitness.

Please note that the slides are in Greek, but the pictures should tell the story (if I have done my job properly).

Click on the grey button to advance the slides. This presentation can also be downloaded as a PDF (click on the menu button).

Please leave me a comment.

How Low Cost Propositions Are Changing Industries

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What does my brand stand for? Sport Conference Athens

blog@oxygen-consulting.co.uk (Ray Algar) — Mon, 19 Oct 2009 09:33:00 +0000

This is the presentation that I delivered on day two of the conference.

It is a complex message to get over even when English is a person's first language. Imagine how challenging this is when it is being simultaneously translated. However, I was very impressed with the Greek translator, who quickly understood the core message.

Click on the grey arrows to advance the slides. To download the presentation as a PDF, click on the menu button.

What Does My Brand Stand For?

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BBC Panorama investigate Ryanair

blog@oxygen-consulting.co.uk (Ray Algar) — Wed, 14 Oct 2009 09:41:00 +0000

Last night's Panorama investigation into the selling practices of Ryanair was interesting. Following the hour-long programme I was left thinking was there really a story here to tell. Ok, so the Ryanair website may not be the best at quickly flagging up the total cost of a flight ticket, but most of can eventually work it out. The airline operates a modern fleet of planes, offers cheaper fares than legacy airlines and has good punctuality. So what's the real issue?

It's Michael O'Leary

I think a lot of the reputational issues with Ryanair rest with Michael O'Leary, the Chief Executive. His relentless determination to drive down cost means that the subtle dynamic of dealing with people, is often lost. O'Leary's philosophy with suppliers is 'give me your best price or get lost'. Yes, he often delivers low fares for passengers, but does he really care about those passengers? When Ryanair head office staff are told not to charge their mobile phones at work has the low-cost mission gone too far?

It's a salient lesson for all the people that are thinking of getting into the low-cost gym business. Deliver low-cost, but do it in a humble and respectful way that demonstrates that you care about people, regardless of how much, or little, they may be paying.

(picture shows O'Leary's response to the Panorama investigation)

Say hello to the UK’s latest budget gym business

blog@oxygen-consulting.co.uk (Ray Algar) — Sat, 10 Oct 2009 09:58:00 +0000

Well, isn't the UK budget gym sector getting exciting? It wasn't so long ago that FitSpace was the lone operator in this new market segment. How things can quickly change. Well now the UK has another low-cost gym operator – Gym4all. The company has announced its first site in Croydon, South London and is actively seeking further locations across London and other major English cities.

The company has adopted the slogan: 'Get Fit, Pay Less', which I assume is a challenge to alternative gym-based propositions charging more than £20 per month.

Exciting times

This really is an exciting chapter in the industry's development and demonstrates that new consumer propositions often get launched during economic downturns. Why? Entrepreneurs need to think more, solve a genuine consumer need and create a proposition so compelling that it cuts through a world cluttered with mediocre businesses.

I do hope that Gym4all is successful; it deserves to be.

Office of Fair Trading demands more consumer-friendly gym contract

blog@oxygen-consulting.co.uk (Ray Algar) — Mon, 05 Oct 2009 09:00:00 +0000

UK health clubs chains certainly like to keep the Office of Fair Trading (OFT) staff on their toes. This time it is Total Fitness UK (a 24 club chain) that has been told to revise its membership contract to make it clearer and fairer.

The company has been asked to amend its contract in the following three areas:

Contain clearer terms relating to the circumstances in which Total Fitness may seek to exclude or limit its liability for loss suffered by consumers.
Make clear that Total Fitness does not have absolute discretion to change its opening times, or change, reduce or cease facilities without providing any rights for the consumer.

Provide clearer information of the circumstances in which a consumer may cancel their agreement.

Mike Haley, OFT Director of Consumer Protection, said:

'Gym agreements, like any other consumer contract, must be balanced, fair and understandable. We have worked closely with Total Fitness to secure these changes and we believe that consumers will find the new membership agreements much clearer and fairer.'

It's unsurprising that consumers are losing faith in contracts, when some companies choose to draft agreements that are unbalanced and unnecessarily complex.

So what's the answer? Rather than tie members up with a complex contract, why not smother them with great service instead.

Second dragon enters the gym business

blog@oxygen-consulting.co.uk (Ray Algar) — Mon, 05 Oct 2009 06:00:00 +0000

James Caan, a judge on the BBC Dragon's Den programme is teaming up with Ben Silcox, former LA Fitness national sales manager to develop a new health and fitness club chain. Branded 'nuyuu', the company has acquired its first three sites from LA Fitness. The company's strategy looks very interesting as they are offering a mid market facilities proposition (complete with a swimming pool and vibration training at their East Grinstead, East Sussex club) for £19.99 per month (€22 euros), based on a 12-month contract.

Caan has this to say about his investment:

'I'm delighted to be backing nuyuu. We've got a hugely experienced team who are dedicated to giving people what they want at a price they want, without sacrificing quality. Frankly, the gym sector is ripe for a bit of a shake up and nuyuu is a compelling proposition.'

I think the UK now has a new segment; 'premium budget'.

Rio to follow London after winning Olympic 2016 bid

blog@oxygen-consulting.co.uk (Ray Algar) — Sat, 03 Oct 2009 09:52:00 +0000

It seems that if you want to win the right to host a summer Olympics, you should never become the outright favourite. Paris discovered this when they were pipped by London, and now the same fate has struck Chicago.

So what clinched it for Rio? Probably two key factors; one is undoubtedly the transformational effect that the Olympics will have across Brazil and the region. The second, that the modern Olympic games has never been hosted in South America. A point beautifully made during the Brazil pitch when a map illustrated that Europe has hosted the games 30 times, the United States 8 times and never in South America or Africa.

What does this mean for Brazilians? President Luiz Inacio Lula da Silva had this to say following the vote: :

'I confess to you that if I died now, my life has been worthwhile.'

As the official Rio Olympic website says; 'the happiest city in the world, is now even happier'

(image shows the plans for the Rio Olympic village)

Health and fitness clubs on New Year's Day

blog@oxygen-consulting.co.uk (Ray Algar) — Tue, 29 Sep 2009 09:47:00 +0000

This video reminded me what it's like trying to get into my local health club during January (New Year's resolutions and lots of other good intentions).

Enjoy.

(My thanks to Armando at AGAP, the Portuguese health club association for sending this over)

Does anyone really love your business?

blog@oxygen-consulting.co.uk (Ray Algar) — Fri, 25 Sep 2009 20:19:00 +0000

I've just returned from Leisure Industry Week (LIW) which took place in Birmingham (UK) this week. It's both an exhibition and conference rolled into one.

Below you can read the presentation that I delivered. I hope you like it and that it gets you thinking. Please leave me a comment.

If your business doesn't stand for something get lost and stop wasting everyone's time

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(Click on the grey arrow to advance the slides. Click on the menu button to download)

Eddie Izzard proves that comedians can run

blog@oxygen-consulting.co.uk (Ray Algar) — Tue, 15 Sep 2009 20:25:00 +0000

Eddie Izzard is a quirky comedian who has recently carved out a successful Hollywood film career (his latest film is 'Valkyrie' with Tom Cruise). He has a reputation for many things, but running was not one of them. That has all changed with today's news that he has just run 1,134 mile (1,825 kilometres) in 51 days. That's a staggering 43 marathons virtually back-to-back.

What was his motivation? Well, it seems to be three things. The first was to raise tons of money for the Sport Relief charity, the second to celebrate the Olympics coming to London in 2012. The third reason was just to set himself a ridiculously tough challenge and see what happens. Asked what he had gained from the running, he said: "I know now I can do that. Sport is one of those words that stopped being part of my life when I was about fourteen. Sporting prowess was not something I ever associated myself with."

I am just staggered by this achievement, because I would never associate Eddie with exercise…and how much training did he put into this super-human endeavour – just six weeks!...now where did I put my trainers!

McFit budget gyms move into Spain

blog@oxygen-consulting.co.uk (Ray Algar) — Mon, 07 Sep 2009 17:45:00 +0000

McFit, the German discount gym chain has announced its first club in Spain. The discount brand, which is now Germany's largest club operator (by membership size), now operates clubs in three countries.

McFit was one of only five (from seventeen) German gym brands that opened new clubs during the March – June 2009 quarter, as tracked in the Deloitte Fitness Market report. In 2010, the company will look to open further clubs in major Austrian and Spanish cities. No news of a UK entry yet, but give it time.

Is this the world’s first free gym?

blog@oxygen-consulting.co.uk (Ray Algar) — Sat, 05 Sep 2009 09:19:00 +0000

Any club owner that is presently charging rather ‘flabby’ looking prices for members to visit a rather mediocre gym, please look away now. Membership at Equinox, the 8-club Danish chain is now free. Well almost free. There is a one-time joining fee of £117 (134 euros), but thereafter, use of the club remains free, so long as members visit at least once every seven days. This means that members get paid for turning up. Now that’s novel.

It is interesting how quickly the low-cost business model as pursued by airlines, hotels and grocers has infiltrated the health club industry right under the noses of industry incumbents who were shouting:
‘High property expenses and low-cost pricing just don’t work’.

So, how will the industry now respond with the arrival of yet another disruptive business model based on the now common-place ‘fremium’ digital model (think BaseCamp, MailChimp and Skype).

Kevin Foley from IHRSA has written an excellent overview of the Equinox strategy and explains how a new CEO from outside of the industry fundamentally re-wrote the way that Equinox sells its memberships. You can read Kevin's article here:

'Can a free business model work in the health club industry?'

Usain Bolt proves that humans can fly

blog@oxygen-consulting.co.uk (Ray Algar) — Mon, 17 Aug 2009 21:01:00 +0000

Congratulations to Usain Bolt who has consolidated his position as the world's fastest man. Taking just 40 strides, he re-writes the record books for the third time. Isn't it amazing how the human body can move, when it has a clear purpose.

In the graph below, I have plotted how the 100 metre record has reduced since 1912 (when records began).

As you can see, it has taken around 100 years for the record to fall by one second. So, with a little luck, my children should still be around to witness the next second.

British Soldiers 'Too Fat' To Fight

blog@oxygen-consulting.co.uk (Ray Algar) — Fri, 14 Aug 2009 09:47:00 +0000

A leaked memo has exposed concerns about rising levels of obesity among British soldiers. The memo from Major Brian Dupree, of the Army physical training corps in Wiltshire, said basic fitness policy 'is not being carried out'. Soliders are expected to complete between 2-3 hours of physical exercise a week, but this does not seem to be happening in practice.

The memo continues: 'The numbers of personnel unable to deploy and concerns about obesity throughout the Army are clearly linked to current attitudes towards physical training.'

There are 3,860 Army personnel classified as PUD - personnel unable to deploy - with a further 8,190 regarded as being of 'limited deployability' for medical reasons, it was reported. The number we do not know, are the additional troops operating overseas who are overweight, and who may be compromising their ability to perform in the field.

However, this is not just a UK phenomenon. The US military has turned away 48,000 overweight recruits since 2005, more than all the American troops fighting in Afghanistan.

Visual timeline of the UK health and fitness industry

blog@oxygen-consulting.co.uk (Ray Algar) — Thu, 13 Aug 2009 09:35:00 +0000

Recently a Reuters journalist contacted me for some insight into an article he was working on for Acquisitions Monthly. He wanted to discuss some of the key challenges facing the sector. He also asked me for permission to reproduce a visual timeline that I had previously worked on that mapped the industry's 30-year evolution.

Below you can see the updated timeline that includes events in the private sector up to 2008. Click on the image to enlarge. Please leave me a comment with your thoughts.

The day Liverpool Street Station erupted into spontaneous dance

blog@oxygen-consulting.co.uk (Ray Algar) — Wed, 15 Jul 2009 21:01:00 +0000

This is the day when spontaneous dance broke out among commuters at Liverpool Street station. Ok, so it's a staged commercial by T-Mobile, but how inventive.

When I last looked, this had been viewed over 13 million times and more than 12,000 people had left comments. Now, that's what I would call brand engagement.

Enjoy:

Ps. My thanks to Armando from AGAP in Portugal for putting me onto this video.

Vivafit reach 100 club milestone

blog@oxygen-consulting.co.uk (Ray Algar) — Thu, 09 Jul 2009 09:34:00 +0000

Pedro Ruiz, the Chief Executive of Vivafit clubs, the Portuguese circuit-based gym chain for women contacted me this week to say they have just opened their 100th club. The expansion of smaller-scale club formats seem more resilient in recessionary times as sites are easier to secure and they require less development capital. Vivafit has added 15 clubs since November 2008 (in seven months). These are also franchise-operated clubs with shared commercial risk which is another reason why they can expand during a market down-turn.

The company is now moving overseas with its first clubs already trading in Spain.

Esporta health clubs have a new owner

blog@oxygen-consulting.co.uk (Ray Algar) — Thu, 02 Jul 2009 10:54:00 +0000

Members and staff connected to Esporta will be pleased to read that Société Générale (Soc Gen) has now acquired the premium health and racquets brand. Esporta's 55 clubs now become a wholly owned Société Générale subsidiary company. The sale comes just before the August 2009 expiry of the administration order of Bell Leisure (Esporta's previous holding company). Readers may recall that it was Soc' Gen' who provided more than £300 million in bank finance for Simon Halabi's company to acquire Esporta back in 2007.

The acquisition also means that Glenn Timms, Esporta CEO has left the business with immediate effect. Timms joined the company in June 2007, replacing Neil Gillis. It is too soon to say who will replace Timms, so for now we can assume that Richard Segal, the recently appointed Chairman is running the show.

Attached image is Richard Segal, new Esporta Chairman

David Patchell-Evans set to become IHRSA's second overseas Chairman

blog@oxygen-consulting.co.uk (Ray Algar) — Tue, 30 Jun 2009 19:57:00 +0000

Later this week, David Patchell-Evans will become IHRSA's new Chairman. Nothing really significant about that you may be thinking. However, this is the only the second time that the role has gone to an individual from outside of the United States.

Industry insiders refer to Evans as 'Patch' who is the Founder and CEO of GoodLife Clubs, Canada's most successful club chain and on a mission to reach 200 clubs by 2010.

The move signifies IHRSA's intention to become a genuinly global trade association - OK so Canada may be next door, but it is a step in the right direction!

Personalised service included as standard at 'budget' citizenM hotel

blog@oxygen-consulting.co.uk (Ray Algar) — Mon, 29 Jun 2009 22:19:00 +0000

Last week I was off to see a new client in Amsterdam and took the opportunity to stay at the new citizenM hotel. CitizenM is priced as a budget hotel, but is spectacularly different. Just take a look at the attached picture which is a screen-shot taken from the website, during the booking process. Every guest has the opportunity to customise their room so that on arrival you are welcomed by your preferred music and lighting scheme. Once in the room, you can use a wireless 'mood pad' to control lights, music, blinds and TV.

Presently, there are two citizenM hotels with a third due to shortly open in the UK. If this is a glimpse of how budget propositions will develop, then mid-market companies operating in any sector, would do well to jump on a plane and experience what citizenM describes as 'affordable luxury'.

Click on the images to enlarge.

How do you REALLY feel about obese people?

blog@oxygen-consulting.co.uk (Ray Algar) — Fri, 26 Jun 2009 17:23:00 +0000

Fitness First was once accused of preferring thinner people when recruiting for gym staff. The claim caused quite a debate at the time. So, here is a scenario for you. There are two candidates applying for a single role and they are both very strong with similar qualifications, experience and attitude. Candidate "A" has a lean appearance, while candidate "B" is clearly overweight. Who gets the job? Do they both stand an equal chance, or is the lean candidate advantaged?

Harvard researchers are discovering that in many settings, the leaner candidate will prevail, and not just in health club settings, where physical appearance is so closely linked to the club's purpose. Is this rational? Perhaps not, but then many decisions are made at deeper, more unconscious levels. Today, I completed a Harvard test that measures the degree to which we associate "fat" and "thin", with "good" and "bad". After completing the "implicit association test", I discovered that I have a strong bias for thin people. I joined the 25% of respondents that held this preference.

You can test your own preference by clicking on the Harvard link. The test takes around eight minutes. Please leave a comment and let me know your test result.

Click on the image to enlarge.