End-of-Year Gym Business Review: What Worked and What Didn’t in 2025 

Growth

As 2025 draws to a close, gym owners and operators across New Zealand face a vital opportunity: to reflect on their business performance over the past year. Conducting an end-of-year review enables gyms to identify successes worth repeating, challenges demanding change, and ultimately, informed strategies for sustained growth in 2026. 

This reflective practice is not just a formality, it’s the backbone of continuous business improvement. In a fitness industry evolving rapidly under the forces of technology, consumer preferences, and economic shifts, gyms that pause to learn from their outcomes position themselves for competitive advantage. 

2025: A Year of Transformation for New Zealand’s Gym Industry 

The fitness landscape in New Zealand in 2025 has been marked by growth, adaptation, and innovation. 

New Zealand’s Fitness Growth Story 

New Zealand’s fitness industry, on the other hand, is smaller but steadily growing, with a 2025 market size of NZD 581 million and a projected annual market growth of 2.5% over coming years (IBISWorld New Zealand 2025Statista New Zealand 2025). 

Significant government incentives and partnerships such as linking fitness activities with wellness programs like AIA Vitality help drive member engagement and fuel steady gym membership growth. 

Do more with Xplor Gym

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At Xplor Gym, we understand the unique opportunities and pressures facing New Zealand gyms in this evolving environment. Our technology solutions streamline operations, enable hybrid fitness models, and enhance member connection. Learn more about how Xplor Gym can help you stay ahead here.

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Reflecting on What Worked 

Hybrid Coaching Models Thrive 

Gyms that implemented hybrid coaching models saw up to 25% membership growth in New Zealand. Offering flexible access via both physical and digital channels enhanced member retention and expanded revenue streams. Hybrid approaches cater to members’ desire for convenience and personalisation, especially crucial for younger demographics accustomed to digital-first experiences. 

Tech-Driven Efficiency 

Automation software for scheduling, payment processing, and membership management saved time and improved service quality. Real-time member data access allowed gyms across the entire region to tailor programmes and marketing, fostering stronger member engagement. 

Community-Centric Programming 

2025 saw a rise in community-building strategies around events, challenges, and social media interaction. Gyms investing in emotional connections boosted attendance and loyalty, countering the commoditisation pressures from low-cost competitors. 

Flexible Pricing and Membership Options 

Gyms embracing no-lock-in contracts and pay-as-you-go models attracted diverse clientele while reducing churn. This flexibility met increased price sensitivity in the broader economy. 

Go Beyond Basics 
Track member preferences and feedback regularly to tailor packages that resonate and retain your community. 

Make Communication Easy

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Identifying Challenges and Missed Opportunities 

Operational Inefficiencies 

Gyms reliant on outdated processes struggled with fragmented data and reactive admin. This slowed response times and negatively impacted member experience. 

Membership Churn Pressure 

With increasing competition from boutique studios, low-cost gyms, and at-home digital options, member retention challenged traditional gyms. Economic pressures further exacerbated churn rates, prompting a need for innovation in value delivery. 

Slow Digital Adoption 

Despite digital’s benefits, many gyms lagged in adoption or integration, missing chances to connect with digital-native members or streamline operations. 

Staffing and Costs 

Labour shortages and rising overheads made consistent delivery and growth more difficult. Optimising resource allocation became a strategic imperative. 

Dig Deeper 
Ask yourself: What gaps in technology, staff training, or marketing might be costing your gym members or revenue? 

Automate Your Systems

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Key Metrics to Measure Success and Improve 

Membership Growth and Retention 

Analyse patterns in new signups, cancellations, and renewal rates by membership category. 

Program Participation 

Track attendance in classes, personal training sessions, and online offerings. 

Revenue Metrics 

Evaluate average spend per member including ancillary products or services. 

Member Engagement 

Monitor app activity, feedback volumes, and participation in community events. 

Staff Productivity 

Assess client loads, retention rates, and coaching outcomes. 

Clear KPI tracking enables data-driven strategy refinement. 

Actionable Strategies for 2026 

  • Personalisation at Scale: Use member data to deliver targeted communication, programming, and offers. 
  • Hybrid Model Investment: Strengthen digital platforms and integrate seamless in-person-online experiences. 
  • Community Amplification: Deepen social connections with events, recognitions, and interactive content. 
  • Operational Automation: Streamline admin tasks with integrated software solutions. 
  • Marketing Innovation: Leverage local insights and digital marketing to attract and retain your ideal members. 
  • Set clear goals 
  • Define SMART goals for each strategy and review quarterly to maintain momentum. 

Planning Your Gym’s Future With Confidence 

The year-end review is a cornerstone habit of successful gym owners. Combine lessons from 2025 with proven technology solutions like Xplor Gym to prepare for market uncertainties and seize new opportunities. 

Ready to unlock your gym’s potential in 2026? 

By building on what worked: embracing hybrid coaching, leveraging technology, fostering community, and addressing key challenges such as operational inefficiencies and member retention, gyms can position themselves for sustained growth in 2026 and beyond. With strategic planning, data-driven decisions, and modern management tools like Xplor Gym’s platform, your business can confidently turn lessons from the past year into a powerful foundation for future success. 

Contact our local team today for a personalised demo and see how our technology can support your business goals. Book a demo

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  • First published: 24 November 2025

    Written by: Toni Rennie