Lifetime Fitness 2007 Annual Report Download - page 15

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In February 2008, we changed the names of our membership types from Fitness, Sports, Advantage and Athletic, to
Bronze, Gold, Platinum and Onyx, to provide our members with a user-friendly system designed to easily
differentiate center access and additional benefits by membership type. We have a flexible membership structure,
which includes different types of membership plans, the most common of which are the Bronze and Gold plans. The
following table compares the different membership types:
Bronze Gold Platinum Onyx
A great experience
at our most
affordable rate
Many center choices
plus benefits outside
the center
Nationwide access,
premium partner
benefits and tennis
The ultimate in access,
service, amenities and
benefits
Center
access
All bronze centers All Bronze and Gold
centers
All Bronze, Gold and
Platinum centers
All Life Time Fitness
locations nationwide,
including Life Time
Athletic centers
In-center
amenities
Free towels, free
lockers and two VIP
passes per year
All Bronze benefits
plus: free climbing
wall, free racquetball
and squash and four
VIP passes per year
All Gold benefits,
plus: access to tennis
centers and six VIP
passes per year
All Platinum benefits,
plus eight VIP passes
per year
Partner
benefits
10+ local and
national partners
500+ local and
national partners
575+ local and
national partners
575+ local and
national partners
We have always offered a convenient month-to-month membership, with no long-term contracts, a low, one-time
enrollment fee and an initial 30-day money back guarantee. Depending upon the market area and the membership
plan, new members typically pay a one-time enrollment fee of $99 to $399 for individual members, plus an add-on
fee of $60 to $100 for each additional family member over the age of 12. Members typically pay monthly
membership dues ranging from $60 to $80 for individuals and $100 to $150 for couples or families for Gold or
Platinum memberships. In addition, new members pay a $6 per child monthly fee to include junior members on a
membership. Our current model centers average approximately 2.5 people per membership.
Usage
Our centers are generally open 24 hours a day, seven days a week and our current model centers average
approximately 68,000 visits per month after the first year of operations. We typically experience the highest level of
member activity at a center during the 5:00 a.m. to 11:00 a.m. and 4:00 p.m. to 8:00 p.m. time periods on weekdays
and during the 8:00 a.m. to 5:00 p.m. time period on weekends. Our centers are staffed accordingly to provide each
member with a positive experience during peak and non-peak hours. Total usage for 2007 was 42.1 million visits, as
compared to 33.8 million visits in 2006, an increase of 24.6%.
New Center Site Selection and Construction
Site Selection. Our management devotes significant time and resources to analyzing each prospective site on the
basis of predetermined physical, demographic, psychographic and competitive criteria in order to achieve maximum
return on our investment. Our ideal site for a current model center is a tract of land with at least 10 acres and a
relatively flat topography affording good access and proper zoning. We typically target market areas that have at
least 150,000 people within a trade area that meet certain demographic criteria regarding income, education, age and
household size. We continue to seek trade areas with increasingly higher income demographics. Two of the centers
we plan to open in 2008 will adapt our current model center to three stories and allows us access to more densely
developed trade areas that meet our demographic criteria. We focus mainly on markets that will allow us to operate
multiple centers that create certain efficiencies in marketing and branding activities; however, we select each site
based on whether that site can support an individual center on a stand-alone basis.