The sport and leisure sector is undergoing a period of significant transformation, shaped by shifting consumer expectations in how people engage with physical activity, financial pressures, changes in population health, and evolving national policy.
The changing landscape is creating opportunities for local authorities to diversify income streams, increase facility usage, and broaden their appeal to different demographic groups. Sports facility management is evolving as operators respond to changing participation trends and growing financial pressures.
Traditional models of leisure provision focused on core activities (swimming, gym usage, sports hall bookings) are being challenged by evolving consumer behaviours. People increasingly seek flexible, experience-led ways to stay active that fit around busy lifestyles and offer social engagement alongside fitness benefits.
This shift reflects broader changes in how leisure is consumed. Boutique fitness offerings, social sports formats, and activity-based experiences are reshaping expectations. For local authorities managing facilities designed around conventional programming models, this creates both challenge and opportunity.
The urgency of adapting is underscored by sector challenges. The State of the UK Swimming Industry Report 2024 reveals that swimming pool numbers have declined to 4,272, down from 4,559 pre-pandemic. Against this backdrop, 25 public leisure centre pools closed whilst only 9 opened. These figures emphasise the critical importance of diversified income generation for facility sustainability.
Reformer Pilates has emerged as one of the fastest-growing fitness trends in the UK market. Dedicated studios command premium pricing—typically £25-35 per class—whilst achieving strong retention rates and attracting demographics that may not engage with traditional gym environments.
The appeal stems from Reformer Pilates offering low-impact, targeted workouts suitable for wide age ranges, perceived exclusivity and boutique experience, strong social elements through small group classes, and visible results that support long-term engagement.
For local authorities, integrating Reformer classes into existing leisure centres represents a viable income diversification strategy. The equipment footprint is modest, requiring limited dedicated space. Class formats enable premium pricing that generates substantial additional revenue per square metre compared to conventional fitness activities.
Successful integration requires investment in specialist equipment, training for instructors with Reformer qualifications, marketing that positions the offering distinctly from core leisure programmes, and pricing strategies that reflect the premium nature whilst remaining accessible.
Functional strength training has emerged as a major growth area, reflecting a shift away from traditional static gym equipment towards movement‑based, whole‑body training. This approach focuses on developing strength, endurance and mobility through compound movements such as lifting, pushing, pulling, carrying and running, often delivered in coach‑led, small‑group formats.
The popularity of formats such as CrossFit and HYROX has accelerated this trend. These models combine functional strength with cardiovascular conditioning and event‑based goals. The structured and standardised nature of these formats also supports high levels of participant loyalty and repeat engagement.
The private sector has responded primarily through boutique and specialist training models. These facilities typically position functional training as their core offer, selling memberships that combine coaching, programming and community‑driven experiences within dedicated spaces. Providers such as David Lloyd offer ‘Blaze’ functional training classes with dedicated studios across their portfolio and is a key selling point for certain facilities, often requiring additional premiums to existing membership packages.
Many local authority operators have introduced functional training zones by reducing static gym equipment (or ‘stations’) in existing health suites as well as repurposing existing studios into dedicated functional strength training zones. The popularity also presents new cross partnership opportunities with specialist private providers, enabling local authorities to replicate elements of successful boutique models through branded programmes, coach development, event-based challenges and enhanced small-group training offers. This could help operators attract new audiences, increase member engagement and generate additional income, while making more efficient use of existing facilities.
Padel tennis continues to grow rapidly across the UK, supported by its accessibility, social appeal and broad participant base. .
Local authorities are increasingly exploring padel as a means to reactivate underused land, generate income, and respond to demonstrated local demand often through partnerships with specialist operators who bring sector expertise and capital investment.
Partnership models can include fixed rental agreements, profit-share arrangements and longer-term concession structures. While these approaches can reduce the need for direct council investment, success depends on careful consideration of site suitability, access, demand and commercial viability.
Recovery, wellbeing and wellness are big trends in the industry with mainstream operators offering complementary ‘bolt-on’ services, both in-person and app based, and boutique high-end wellness and recovery facilities being developed. Recovery and wellness activities focus on holistic healing, combining physical, mental, and social strategies to improve well-being. Key activities include gentle exercise (yoga, walking), mindfulness (meditation, breathing), sleep patterns and physical recovery services such as contrast therapy/sauna–cold, compression boots, cryo-chambers etc.
These services can be incorporated as part of standard memberships, premium add-ons or specialist programmes, helping leisure centres attract new audiences, improve retention and support wider health and wellbeing outcomes. The growing interest among younger generations in wellness-led lifestyles also provides an opportunity for public leisure facilities to modernise their offer and remain relevant to changing consumer expectations.
Soft play areas, climbing walls, clip and climb facilities, trampoline zones, and bouldering spaces have proved effective at generating supplementary income whilst attracting families and younger users who extend facility dwell time and increase secondary spend.
These additions work because they appeal to different user groups than traditional leisure activities, command premium pricing for time-limited sessions, generate income during periods when core facilities may be underutilised, and create destination appeal that draws visitors who then use cafés, vending, and other revenue-generating services.
The investment case for commercial leisure additions rests on calculating payback periods against capital costs, assessing whether local catchments can support additional capacity, evaluating operational requirements including staffing and safety considerations, and understanding how these offerings complement rather than cannibalise existing programmes.
Sports halls traditionally operate around block bookings for clubs and regular hirers. Whilst this provides stable base income, it can limit responsiveness to changing demand and restrict access during popular time slots.
Progressive operators are implementing more flexible programming models that maximise utilisation during quieter periods, accommodate emerging activities and formats, enable premium pricing for peak-time slots, and maintain balance between regular users and casual participants.
This might include introducing walking netball, walking football, or other modified formats during daytime periods when halls are underutilised, creating themed activity sessions that attract new user groups, implementing dynamic pricing that reflects demand patterns, or developing partnership arrangements with emerging sports that can guarantee usage levels.
The growth of boutique fitness reflects broader consumer trends towards experience-led leisure. People increasingly seek activities that deliver not just physical benefits but social connection, sense of achievement, and enjoyment that extends beyond the activity itself.
For local authority leisure centres, this suggests opportunities to reframe programming around experiences rather than simply facility access. Examples include themed fitness events that create special occasions, small group training with personalised attention, social leagues and competitions that build community, and programming that integrates hospitality elements such as post-activity refreshments in social spaces.
Major private operators are already demonstrating what mature experience-led leisure provision looks like, blending sport with cafés, informal meeting spaces, and enhanced environments that encourage extended visits. Public facilities can adapt these principles proportionately to local contexts and available resources.
Successful income generation through innovation requires strategic rather than opportunistic approaches. Local authorities should assess which trends align with identified community needs and participation gaps, evaluate capital investment against realistic income projections and payback periods, consider operational implications including staffing, programming, and ongoing costs, and ensure new offerings complement Sport England's Strategic Outcomes Planning Guidance by contributing to measurable increases in participation amongst target groups.
Innovation should be grounded in evidence. Understanding catchment demographics, analysing competitor offerings, consulting potential users, and reviewing comparable facility performance all inform investment decisions that balance financial sustainability with community benefit.
Income-generating innovations should be evaluated not solely on financial returns but on broader contributions to participation, health outcomes, and community wellbeing.
This means tracking participation rates amongst target groups including inactive populations, assessing whether new offerings reduce barriers to engagement, measuring health and wellbeing outcomes where possible, and quantifying economic impacts including local employment and supply chain benefits.
FMG Consulting's Economic and Social Value Model provides the framework for assessing how facility innovations deliver measurable community benefits alongside financial sustainability, ensuring that investment decisions advance strategic outcomes whilst strengthening operational resilience.
Effective sports facility management can help create more sustainable facilities while delivering stronger participation and community outcomes.
Looking to diversify your facilities' income streams and respond to changing participation trends? FMG Consulting can assess innovation opportunities and develop implementation strategies that deliver measurable ROI.
Contact FMG Consulting: https://www.fmgconsulting.co.uk/?page=contact
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