By Mia Parise, Brycen Prock, Connor McDonough, Peter Titlebaum, Ed.D., and James Robert Blair, Ph.D.
External environmental factors, including COVID-19, new artificial intelligence technology, economic conditions and a dropping birthrate affecting the future number of college-aged students have radically impacted the recreation industry. As a result, we are dealing with student recruitment and retention issues.
Understanding the wants and needs of Gen Z is forcing more disruption within the college recreation community. With enrollment numbers continuing to decline at many colleges, budget cuts and restructuring of organizations within universities have become commonplace.
We can expect change throughout many industries and our lived experiences. If you can adapt, you have a better chance at success. However, this is not always so easy.
Kodak had the technology for the first digital camera in 1975, but they did not introduce the product to the market because it would be in direct competition with the printing of pictures, which they saw as their core competency. The company sat on that technology for years, when instead they could have introduced the product into this space and signaled to consumers how they were a leader and innovator. Instead, they allowed others to catch up, and over time they lagged behind other companies, and in the end became obsolete.
We need to always be looking ahead to understand and adapt to trends in the marketplace. Staying complacent will be detrimental to our organizations, staff, students and other community stakeholders. Being proactive and leaning into the changes impacting college recreation is a key to success.
External Trends Impacting College Recreation
External marketplace trends like COVID have caused psychological changes throughout society that we are still feeling. The pandemic led to months of isolation and a lack of social interaction. Because of this, two things happened: Some people found a new passion in taking care of themselves both physically and mentally. Others experienced a severe increase in anxiety.
Physical activity has been seen as a successful coping method for anxiety and other mental health disorders. It brings students, faculty and staff into campus recreation facilities for physical exercise and mental well-being, as well as providing a sense of belonging.
Students have different needs post-COVID, and recreation professionals need to adjust their programming and structure. Rebranding programs can be seen as a complex task, but it can be simplified. Although budgets, materials and staffing also factor in, there are three trending ways to rebrand a program:
Transform Spaces: Pickleball is the fastest-growing sport in the world. Recreation facilities across the country have transformed spaces into pickleball courts. Ohio State recently converted indoor concrete basketball courts into pickleball courts to satisfy the wants and needs of their student body year-round.
Home Exercise: COVID made it more convenient and necessary for people to exercise at home. Whether this was through Zoom workout classes or using household items as weights, participants began to rely on their devices to complete workouts. Incorporating new technology like livestreaming and apps has allowed people to work from almost anywhere and still feel like they are a part of a group or community that is trying to achieve a common goal through their workouts.
Exercise Apps: Recreation facilities hire many passionate group fitness instructors and personal trainers who would love to share their workouts with more people. This could include an app for their workouts to be uploaded or provide some coaching and mentorship. An app eliminates the stress of brainstorming a workout. This offers students one less thing to worry about and the flexibility to meet their schedule when they can feel overwhelmed with competing responsibilities and commitments throughout their daily routines.
Vision for the Future
Technology is ever-changing. Until recently, many could not even imagine artificial intelligence (AI). Now it is so relevant that there are classes taught on the topic and many people use it as a part of their everyday lives. AI has the potential to be significantly integrated into campus recreation. This could include students using it to design a workout program or as an aid for writing up reports as some recreational professionals are using it now.
Esports is also being integrated into campus recreation. Many facilities have created esports labs. Some professionals are limiting student screen time for the good of their health, but the labs have brought in a new group of people and provided a hobby and support system for many.
Virtual reality (VR) is another form of technology that enables students to experience new places and activities that they may not have access to in physical reality. Workout classes are being transformed as if they are in a different world. Imagine going to spin class, but it is as though you are participating in the Tour de France. It is a new aspect of fitness that will continue to be explored and could push people to reach their personal fitness goals.
Creating Revenue
With the current financial situation throughout higher education, recreation professionals are looking for new revenue streams. Three major potential revenue sources include facility rental, community membership, and the use of apps and social media.
Facility rentals focus on properly allocating space for special events including tournaments, conferences, etc. However, the future must embrace how to use space for advertising and sponsorships. With an 18-to-22-year-old target market, it is a unique revenue-generation opportunity for universities to connect brands with their campus population.
Community membership is another opportunity for universities. Tapping into other populations surrounding the universities could allow them to engage this audience, but also “upsell” them to become enrolled in classes and be a part of their core products and mission as a higher education institution.
Creating social media campaigns to advertise programs and utilizing user-friendly apps can increase engagement outside of your core target audience. These platforms allow recreation programs to target new audiences, inform them about product offerings, and persuade them to utilize their programming and facilities.
Event-related revenue is being generated by colleges that have close ties with outside organizations or sponsors. These events are a good source of revenue, but also an opportunity to engage the community with the institution. Businesses can be ideal for recreation professionals to target as financial contributors to their departments.
Kent State University’s recreation center recently leveraged its 25th anniversary by organizing a raffle and distributing legacy intramural prizes, raising $5,000. The campaign capitalized on alumni, nostalgic product offerings and campus traditions, which resulted in successful revenue generation for their department.
Some universities focus on obtaining government-funded grants. For example, the University of Cincinnati obtained grants that helped them to receive $122,000. This allowed them to continue pursuing programming and activities that aligned with their mission and vision as an organization, but not burden their student population with increased fees.
Equipment Asset Valuation
Developing a system to evaluate equipment asset acquisition (leasing vs. purchasing) can benefit campus recreation programs by enabling them to determine the right fit for their situation and allocate savings to other programming areas. A benefit and drawback comparison between the two showed that leasing requires more detailed documentation on inspections or maintenance by the leasing agreement whereas ownership puts all responsibility on the recreation department.
Leasing offers a cheaper upfront cost, which may be beneficial when buying multiple pieces of equipment at once. Buying has a large upfront cost but can be cheaper in the long run. Most Ohio schools are still buying their equipment. With the lifespan of equipment being at least five years, there is more value in having ownership that is cheaper than the long-term costs of a lease. By doing a cost-benefit analysis, campus recreation programs could determine which of the options available is the best fit for their current situation and the goals of their organization moving forward.
Pay-to-Play Revenue Model
One of the highly discussed models for recreation revenue generation in colleges is the pay-to-play approach, where students pay small fees in addition to their tuition for their participation in intramural sports. This system has the potential to be advantageous for the financing of recreational programs moving forward.
Pay-to-play has the potential to boost financial resources for better facilities, staff and equipment. Students are less likely to miss games and fitness classes they have already paid for, which can result in more stable participation and an involved community of participants. Pay-to-play also comes with some challenges. The system can erect barriers to access recreational sports programs.
This is particularly true for low-income students and can go against the community-building mission of college recreation programs that have traditionally served their communities by focusing on inclusivity and equality. Students viewing these additional campus recreation fees as unnecessary and burdensome may be less willing to support programming efforts and participate in campus community events.
Some institutions have responded by creating scholarships or fee waivers for students who are experiencing financial hardship. Programs can also conduct surveys and track participation rate data to determine the effects on pay-to-play policies and make corrections based on their findings. Although pay-to-play models offer opportunities for significant financial benefits, they still need to be planned in such a way that ensuring financial sustainability is aligned with the inclusivity of their campus population. Revenue strategies can be made flexible and equitable, which, in turn, will improve the quality and accessibility of the recreational programs as well as enhance student engagement and program sustainability.
Programming
College recreation programs have struggled in recent years with university budget cuts. This has resulted in a struggle to cover the variety of programs offered and maintain facilities. When evaluating how to improve programming moving forward, it is important to consider how department operations are being aligned with their stakeholders as well as the risks involved with different recreational programming opportunities available.
Risk management remains a top priority. Evaluating how to best control for different environments and additional risks is important moving forward. Waivers are viewed as a layer of protection that should be regularly reviewed due to changing program dangers. Group-based programming remains a top priority for activities such as intramurals and classes.
It is also important to consider groups that are currently being left out of recreational programming. Carnegie Mellon University along with many other universities has added Special Olympic programs that include people with intellectual and developmental disabilities. This allows them to stay connected with their local community and offer programming that aligns with their vision, mission and values as an organization.
Education remains a top priority for universities and recreation departments. This includes finding ways to incorporate mental and lifestyle health into the educational experiences of their students.
Recreational facilities need to be future-focused and meet consumers’ wants and needs to retain them. It is no longer a question of whether diversity, equity and inclusion should be implemented, but how to do so. This allows people with common goals to come together through recreation. Some ways to do this include cultural fests, training and more integrated group fitness classes. Many people choose to participate in campus recreation in hopes of bettering themselves in some way and sharing an experience with others.
Promoting outdoor activities brings many groups of people together who would not typically find one another. COVID-19 encouraged outdoor activities. The demand for them has continued to grow. This allows students to get off campus, immerse themselves in the outdoors and experience new places.
Lastly, each college requires incoming students to go through drug, alcohol and hazing modules. Incorporating some educational recreation modules on the benefits of exercising, self-care and mental health could be of significant value to our student population. This could better inform students and help them make good choices throughout their college careers and afterward as working professionals.
Conclusion
Campus recreation is facing some challenges and uncertain times. There are potential solutions and opportunities for campus recreation programs to be innovative leaders of change and adaptation. Moving forward, programs need to incorporate new technology and adapt to changing college student population wants and needs as well as attracting new segments to participate in their service offerings.
Campus recreation professionals need to stay up to date on environmental factors that may impact them and their programs as well as monitor trends that may be useful for their programs moving forward. Although significant change is anticipated in the years to come, we believe it is still good to remain optimistic and be proactive when making changes to ensure the health and growth of your campus recreation programs.
About the Authors
Mia Parise, Brycen Prock and Connor McDonough are undergraduate students at the University of Dayton studying Sport Management. Peter Titlebaum, Ed.D., is a professor of Sport Management at the University of Dayton. His areas of expertise include marketing, sales, fundraising, activation, return on investment and return of objective strategies. James Robert Blair, Ph.D., is an assistant dean, chair of the faculty, and associate professor of Marketing at Eastern Kentucky University. RM