Fitness clubs borrow hospitality to turn workouts into belonging

By Elena Vasquez

The global wellness economy reached $6.8 trillion in 2024, nearly double its 2013 size, and the Global Wellness Institute projects nearly $9.75 trillion by 2029. McKinsey & Company’s 2025 analysis links much of the growth to Gen Z and Millennials, who treat wellness as a continuous, personalized practice spanning physical health, mental well-being, nutrition, sleep, appearance and mindfulness.

From workout space to social club

Fitness operators borrow hospitality’s central proposition: a welcoming place that creates belonging. The “club as destination” model shifts the promise from “a place to work out” to “a place where I belong.” It treats the gym as a third place, like a bar, library or town square, where members build relationships outside home and work.

Life Time, a North American operator, combines fitness with wellness facilities, dining, social spaces and activities that encourage members to stay beyond workouts. In Europe, David Lloyd Clubs offers Clubrooms for working, relaxing, eating and meeting other members, plus social programming such as themed book clubs and quiz nights.

For Gen Z, raised amid constant digital connection, in-person relationships are an increasing reason to participate. The model also puts fitness clubs in competition with cafes, coworking spaces and social clubs, not only other gyms. It succeeds only when members feel comfortable entering and returning with friends.

Motivation, inclusion and recovery

Hospitality treats the first impression as decisive: guests often decide within minutes whether they feel comfortable. In fitness, that means a warm greeting, facility introduction and support during the first visit rather than a transactional sales pitch.

That reassurance matters because 44% of U.S. Gen Z consumers say it is challenging to stay motivated to exercise, according to McKinsey & Company.

Inclusion must operate beyond marketing. Operators should welcome people across ages, body types, abilities and cultural backgrounds through everyday interactions. Younger members increasingly connect exercise with stress reduction, mental health, sleep quality, energy and resilience, not only appearance and athletic performance.

Recovery services reflect that broader outcome. Clubs are adding recovery lounges, infrared saunas, cold plunges and spaces designed for physical and psychological restoration. Equinox combines fitness and personal training with spa services and recovery amenities.

Personalization without losing the human touch

Fitness providers hold member goals, attendance patterns and preferences, but often do not use them meaningfully. An app may detect several missed workouts; a coach’s personal message asking how the member is doing creates a different experience. Hospitality’s lesson is explicit: “Technology can identify needs; human interaction creates loyalty.”

No software vendor or fee structure is specified, and the proposed model keeps the coach as the human point of contact rather than replacing that role with an app. The distinction matters because a detected signal and a supportive response produce different service outcomes.

Flexible access and designed environments

Loyalty is strongest when earned through positive experiences rather than contractual restrictions. Flexible booking, personalized offers and loyalty programs can lower barriers. Younger consumers expect access to fit changing schedules through pay-as-you-go visits, flexible packages and opportunities to try different formats.

Flexibility does not require eliminating long-term memberships, which some consumers value for convenience or financial advantages. Operators should communicate conditions transparently and make it easy to find a suitable arrangement, because flexibility is about building trust.

Design also becomes part of the product. Lighting, music, layout, scent and atmosphere shape how visitors experience a club, particularly as younger members share discoveries through social media. Hospitality need not provide luxury by default: clear signage, clean changing rooms, comfortable waiting areas and thoughtful staff interactions can perform the same work.

Third Space illustrates the higher-end version at its Chelsea club in London. A concierge reception area sits alongside premium changing rooms, towels, skincare products, recovery facilities and optional laundry services.

Curating reasons to return

Hotels and restaurants refresh seasonal menus and personalized recommendations to give guests reasons to return; fitness operators can apply the same logic. Members seek variety across strength training, Pilates, yoga, run clubs and well-being workshops, while younger consumers remain open to experimentation.

Barry’s extends the experience beyond equipment with its instructor-led Red Room format, atmospheric setting and Fuel Bar. Together, those elements make the session a distinct shared experience rather than interchangeable access to equipment.

What does this change for operators and members?

Operators are moving from selling access to equipment toward managing a broader hospitality ecosystem: social programming, recovery, dining or Clubrooms where offered, flexible access and service interactions that support retention. The analysis provides no unit counts, franchise mix, check averages, cost of goods, labor percentages or margins, so it cannot establish a measured financial return.

For members, the practical change is broader choice and a less intimidating first visit, combined with reasons to return beyond a workout. The model does not call for eliminating memberships; it calls for clearer options and transparent conditions.

The central test is whether operators can create a place members consider part of their lives without relying on the largest facility or the most machines.

The next competitive benchmark may therefore be repeat engagement and belonging, as fitness clubs take on the role of social and wellness destinations.