Let me share a stark contrast that should concern every fitness operator. Last week at a Marriott, their system instantly recognized me, upgraded my room, and recommended a restaurant based on my preferences. Days later, at my local fitness club – where I’ve been going for years – the front desk still needed me to spell my last name. This isn’t just poor customer service. It’s symptomatic of a technology investment crisis that’s costing you millions.

The Numbers Don’t Lie

In my work analyzing technology investments across multi-location businesses, I’ve discovered a troubling gap: fitness chains invest just $10,000-15,000 per location in technology. Hotel chains? They’re spending $150,000-200,000. That’s a 15-20x difference.

Before you dismiss this as a funding issue, consider the percentages. Hotel chains allocate 4.2-5.1% of revenue to technology. Medical chains like HCA and Kaiser invest 4.5-5.5%, despite their legacy system challenges. Your fitness chain? You’re likely spending just 2.0-2.5%.

What Your $10K Really Buys

I recently reviewed a fitness chain’s “modern” technology stack. It included basic member management, simple billing, and access control. However, when I asked about predictive analytics, member behavior patterns, or personalization capabilities, I was met with silence.

Compare this to Marriott’s approach. They use AI to predict guest behaviors, optimize pricing in real-time, and create personalized experiences that drive loyalty. They’re turning technology into revenue.

Here’s what should keep you up at night: your business has richer data than any hotel. You see members multiple times weekly, track their fitness journeys, and understand their goals. Yet most of you do nothing meaningful with this information.

The Revenue You’re Missing

Consider your Monday 6 p.m. spin class with its waitlist and your half-empty Tuesday 2 p.m. session. Both are priced identically. In any other industry, this would be considered gross mismanagement of resources.

I’ve watched hotel chains increase revenue by 18% through dynamic pricing alone. They adjust rates based on demand, events, and even weather. For fitness operators, the opportunity is even greater. Peak hours, premium instructors, and specialized programs all represent untapped pricing power.

Your Strategic Investment Path

You don’t need to match hotel spending tomorrow. But targeted investments can deliver maximum impact.

Start with revenue optimization through dynamic pricing. Test premium pricing for high-demand slots and incentive pricing for off-peak times. You should see 15-20% revenue increases within 12 months.

Next, build member intelligence. Integrating your systems and deploying predictive analytics will reduce churn by 10-15%. Know who’s at risk before they cancel.

Finally, create seamless experiences through mobile integration and personalized communications. This isn’t about fancy features—it’s about respecting your members’ time.

These strategic investments cost far less than what hotel chains spend, but they’re transformative for your business.

The Competitive Reality

Look at what’s happening with GymNation in the UAE and Saudi Arabia. They launched with a fully digital model—no sales staff, no paper contracts, everything managed through their app. Members join, book classes, and manage their entire fitness journey without ever speaking to a human. Their overhead? Minimal. Their growth? Explosive.

Now contrast this with Anytime Fitness. They’re trying to evolve—adding an app, virtual coaching, and integrating wearables—but they’re retrofitting technology onto a traditional franchise model. It’s the difference between Tesla and Ford adding electric options. One is built for the future, the other is adapting to survive.

This distinction matters. Tech-native concepts like GymNation launch monthly, unencumbered by legacy thinking. They’re building what members actually want: intelligent, personalized, frictionless experiences. While established chains debate whether to upgrade their 10-year-old billing systems, these disruptors use AI to predict which members need motivation and automatically send personalized workout suggestions.

Meanwhile, chains treating technology as an expense rather than an investment are one disruption away from obsolescence. Even the “innovative” ones are just playing catch-up.

The fitness industry is at an inflection point. Invest in technology that drives revenue and retention, or watch competitors take your members. The question isn’t whether you can afford to spend more on technology—it’s whether you can afford not to.

About Marcin Obel

Marcin Obel is Chief Innovation Officer and founder of Qodeca, where he combines over 22 years of software development expertise with deep fitness industry knowledge. He has led digital transformation initiatives for leading fitness brands, including The Bay Club Company (long-term flagship partnership), EōS Fitness, Jazzercise, PRO Club, and provided consulting services for clients, including, among others, SC Fitness and PureGym Arabia.

Marcin specializes in fitness industry digital transformation and addressing gaps not fulfilled by off-the-shelf software, creating member-centric IT ecosystems and data-driven platforms that enhance customer engagement and operational efficiency.

His unique position at the intersection of technology and fitness enables him to translate complex technical capabilities into practical solutions that drive revenue growth and member loyalty for fitness businesses worldwide.