Membership vs. Pay-Per-Use: Which Pricing Model Works Best?

The Membership Model: Predictable Revenue, Loyal Customers

A membership-based pricing structure has been the backbone of sports facilities for decades. This model typically involves a recurring monthly or annual fee, granting members unlimited or tiered access to services.

Pros:

• Provides a steady, predictable revenue stream, ensuring financial stability.

• Encourages customer loyalty and regular visits, fostering a strong community.

• Allows for easier financial planning, budgeting, and long-term growth.

Cons:

• May deter potential customers who aren’t ready for a long-term commitment.

• Less appealing to those with varied fitness interests or unpredictable schedules.

• Can feel restrictive compared to modern, on-demand service expectations.

The Pay-Per-Use Model: Flexibility That Attracts More Customers

Pay-per-use is gaining traction in 2025 where people want control over how and when they spend their money. This model allows customers to pay for individual sessions, classes, or facility access without long-term obligations.

Pros:

• Offers flexibility, making it ideal for beginners, travelers, and occasional users.

• Attracts a broader range of customers who may not be interested in memberships.

• Aligns with the on-demand economy, similar to fitness apps and streaming services.

Cons:

• Revenue can be inconsistent, making financial planning more challenging.

• May not foster the same level of customer retention and loyalty as memberships.

• Requires continuous marketing efforts to keep attracting new users.

The Best of Both Worlds: Hybrid Pricing Models

Many sports facilities are blending elements of both membership and pay-per-use models to maximize revenue and appeal to different customer segments. Here are some hybrid approaches that work:

• Credit-Based Systems: Users purchase credits upfront to be redeemed for various services, ensuring commitment while offering flexibility.

• Tiered Memberships: Different membership levels provide varied access and perks, catering to both casual and dedicated athletes.

• Dynamic Pricing: Prices fluctuate based on demand—higher during peak hours, lower during off-peak times—similar to airline and hotel pricing.

• Bundled Pricing: Selling packages of training sessions or rentals at a slight discount encourages return visits while maintaining flexibility.

Key Factors to Consider

When deciding which model works best for your facility, consider these factors:

• Target Demographics: Younger customers often prefer flexibility, while committed athletes may value memberships.

• Facility Type: Indoor facilities may benefit more from memberships due to year-round usage, while outdoor spaces may see more pay-per-use traffic.

• Competition: Evaluate what local competitors are offering and find a way to differentiate your pricing.

• Cash Flow Needs: Determine whether a steady monthly income or higher upfront payments better suits your business model.

Conclusion

There is no one-size-fits-all approach to pricing a sports facility. While traditional memberships offer financial predictability and loyalty, pay-per-use models cater to modern consumers seeking flexibility.

The most successful facilities in 2025 will likely offer a mix of both, allowing customers to choose a plan that fits their needs while maximizing revenue opportunities.

The key is to strike a balance that ensures profitability without alienating potential customers—because in the end, accessibility and customer satisfaction will define success.