Operator: Thank you. Our next question comes from the line of John Heinbockel from Guggenheim Partners. Please go ahead.
John Heinbockel : Hey, Barham.
Bahram Akradi : Hey, John. How are you?
John Heinbockel : Good. So a quick one — well, 1 will be quick. Can you talk about your philosophy, right, on — there’s a virtual flywheel here, right? You take in more dues, you invest in the business, the experience gets better and you can further raise pricing. Talking about that philosophically, right? And what would you like to — when you think about raising the experience further, what would you like to invest in whether it’s new services or upgrades that you’re not doing today, right, that would elevate the experience.
Bahram Akradi : Yeah. So we are doing them we’re not doing them across the system, John, it’s a great question. So let me — certain things you just can’t do overnight. Like what I’d like to do is in terms of our ultra-fit class, which is really amazing small group training kind of a sprint training, coupled with functional training for perception. It has completed a workout somebody would want to have. Okay, we have to build this pop-up studios for people to be able to do those, and we’ve been busy working our tails of nonstop to converting the floor plans to get this done, we are now done with maybe more than two thirds of the clubs, and we’re still kind of doing that remodeling the others going forward. That takes time to implement that idea.
And then once you have that, now you have to get the talent that can actually coach that class that has the people wanting to follow. So just these things that we want to do is not like writing a new software for something and then rolling it out and everybody can — it’s just the speed of implementation is really one of those things that you have to take into consideration. So what I’d like to answer your question, what I’d love to see is more consistently across all the clubs in the country executing the locker room that smells like the best spa in the world, the cafe that gives you the best food, all the programs taught by the best coaches, best instructors. So it’s just really continuing to work when we — and any of the — any CEO of a multiunit.
You can get excited about the few stores that is closer to you that you see everything running perfectly. The question is, is that happening consistently across all the system? And how fast can you roll out new programs consistently across the whole system. So we are doing that. We have lots and lots and lots of runway right now to — in continuation of implementation of the programs we have just talked about. There is plenty of runway there. I see our average dues for the new membership sold by this summer well in excess of 220 to 225. And then that’s almost Country Club like in terms of what you’re charging. So then I feel like we got to make sure that, that sense of the longing for the customer where they just deeply believe they’re going to the best brand.
The other thing we’re doing for the customer, nobody else can no Country Club can give is access to nearly 40 million square feet of facilities across the country. More and more we hear from the customers saying, I travel way of Life Time, we look for a home near Life Time. I mean it’s happening constantly. So our desire has been to build one of the most well coveted brands in the country, and we’ve been working at it for 30 years. And I think today is in the best place it’s ever been.
John Heinbockel : And then just real quick, the quick one was going to be, if you look at the underpriced memberships, right, that you talked about before. So that’s about $200 million of annual revenue. I mean how do you think about — maybe not all of that is available, but you think about staging that over one-year, two-year, three-year period?
Bahram Akradi : Yeah. That’s too aggressive. You really have to run your business from the customer point of view. You don’t want to make the customer who’s been with you for six-seven-eight years, feel like 10 years, 15 years, feel like you have no appreciation for that. So we are — we have been doing this steadily. We didn’t do it as as smoothly as we’re doing it now, we used to do a price increase every November for everybody at one time, too harsh. Now we go through a use of AI utilization studies, everything — and we may take $0.5 million worth of dues increase this month. We may take another $0.5 million next month. So it’s a small number of people. And then that allows — it’s a small number of people per club that allows an individual conversation between that particular member and the lead general of the club.
So we’re going to lead that in methodically slowly but we have lots of dry powder, just that, that’s really an opportunity for the company to kind of improve the dues revenue steadily throughout the year.
John Heinbockel : Okay. Thank you.
Bahram Akradi : Thank you.
Operator: Thank you. Ladies and gentlemen, we have reached the end of the question-and-answer session. And the conference of Life Time Group Holdings Inc., has now concluded. Thank you for your participation. You may now disconnect your lines.
