What the New Year Could Bring

By Rod Heckelman

TRENDS REVEAL CLUES

Accurately predicting how our industry will unfold in 2025 is quite a challenge. There are so many variables, ranging from the unknown input and impact of several evolving key tennis associations to the recent integration of many new racket sports. The helpful news is that these transitions in the last few years have lent to more research and information about racket sports than in many years past. From that, we can look at trends that will reveal clues to what we can expect in the coming year. Let’s start by looking at each tennis facility's main departments.  

At the top of the list is the impact of the popular new racket sports. With more racket sports in the mix, an entirely new customer base has been created that will continue attracting a wider demographic interest. For instance, pickleball attracted more seniors and young participants to the courts. Padel has also lured in many younger players. That impact on the tennis world has had mixed results. Some facilities have adjusted and become more diverse by providing permanent or temporary pickleball courts. Many facilities remain on the fence about how much investment, or transition they need to make to meet these new demands, not an easy task if there is limited available space to expand or alter.

CHALLENGE: HIGH COST OF REAL ESTATE

Now that new racket sports are growing, the game is afoot, and more indoor venues need to be built. Their financial planning will have to change to adjust the revenue created by the occupants. Each racket sport will be reviewed independently to ensure it is sufficient to cover its cost and contribution to the bottom line. The racket industry will still be wrestling with the escalating cost of real estate, especially in areas where the value of the real estate entices owners and investors to look for other options that can produce greater returns and income. This is especially true in metropolitan areas or suburban locations. This prime real estate has experienced an abnormal jump in real estate prices in the last decade.

IMPACT: ADVANCED TECHNOLOGY

Advanced technology may have the biggest impact on the racket business. It will directly impact any facility that needs to improve its communication, data management, maintenance, and sales tactics—not just next year but for many years to come.

The fact is, it’s not that we use technology, it’s that we live it. Staying in touch with any tech advances will be an ongoing task so that a business can quickly integrate any new trends and not react to them.  Where in the past the physical quality of a facility, or the social benefits, were possibly at the top of the list for most customers. But now any organization's advances and the implementation of new technology will likely become members' biggest attraction and retention. Our current clients live in a world of instant communication and gratification, they will expect that standard to be met by any facility, in essence, being tech-savvy is now the norm.  

NUMBER ONE TOOL: CELL PHONE

Coaching and lessons will become more competitive, both in recruitment and retention of students. There will be a focus on helping players find others to interact with and also providing easier access to booking, scheduling, and payment. A teaching pro cell phone may rival their current number one tool; their tennis racket.  

Many tennis facilities have been around for some time and are due for some physical upgrades. With any tennis club that hasn’t been growing in both membership and income, investing in upgrades will be financially challenging. Management will have to decide in which direction to go, suffer profits, or become exposed to their newer and more modern competition. It will be a tough decision that needs to be thoroughly reviewed.

Inventory for maintenance will also be a concern. The idea that supplies can be more readily available with today’s advanced delivery system, is a bit deceptive. In recent years, manufacturing companies have had to cut back on production due to slower growth in some sectors of the industry. The result is fewer products being manufactured, resulting in the distributors having less inventory. Why is this so important…most clubs operate daily and members expect access and usage daily. Dues-paying members do not tolerate downtime due to delayed maintenance, in any area of a facility.

IMPORTANCE OF QUALITY SOCIAL PROGRAMS

Finally, keeping in step with the value of having a quality social program will be a challenge. The new consumer stays busy and active. If they have a family, they have their children going from one activity to another. If they are avid tennis players, they are looking to get on the court and off the court as soon as possible. These days there are fewer and fewer members that have the time to just hang around the club. On the other hand, there are still a few groups of players who still take part in having some time to enjoy the company of others, but those would be players who have more free time, such as retired folks, or those who have engineered their lifestyle to have more free time. You don’t want to forget about these groups, they often are the long-time members whose loyalty resonates as great public relations for any facility.

The good news is, that those racket organizations that are evolving with these changes are perfectly positioned to take advantage of this new fast-moving world we live in. With a little help from those large tennis organizations that lead our industry, we could all have a banner year.  But just in case, make sure your game plan remains flexible and open and never too dependent on these organizations. Be comfortable staying somewhat independent and make your mission to stay open to new ideas and alternatives.