The private club industry has always been a reflection of the times. Its fortunes rise and fall alongside social, economic, and cultural tides. From the 2008 financial crisis to the pandemic’s global reset, clubs have faced disruption after disruption, emerging each time with renewed clarity about their purpose and value. However, as we look toward 2026, the challenges facing private clubs are more nuanced, shifting from survival to sustainability. A combination of culture, economics, and the member experience. For managers, a new level of financial accountability is rising to the surface. Experience and the right level of value, depending on the club, is always a balance. Compounded inflation, expectations, and demand are hitting a crossroads.
Evolving Expectations and Generational Tension
A generational shift is reshaping the definition of “value” in private clubs. Younger members, particularly Millennials and emerging Gen Z professionals, are demonstrating that they are willing to pay for experience and access rather than simply status. They crave authenticity, personalization, and a lifestyle that aligns with wellness, community, and convenience.
Meanwhile, Baby Boomers, still the financial backbone of many clubs, are approaching a phase of economic conservatism. They appreciate the legacy and tradition of their clubs but are less inclined to fund aggressive reinvestment or lifestyle expansion. Generation X, sandwiched between the two, finds itself in the middle. It leans more towards the desires of Millennials but is still somewhat price-sensitive, having lived through two or three major economic events in their lifetime, depending on their age.
This generational trifecta creates tension in how clubs define and deliver “exceptional experiences.” Every demographic values the club differently, yet all expect excellence. Meeting those layered expectations without compromising financial integrity is perhaps the defining challenge of the next decade.
The Cost of Excellence
Clubs are built to deliver a year-round, high-touch, high-quality experience. By comparison of value, a lifestyle comparable to a luxury vacation, but delivered daily in members’ own backyards. That level of service comes at a cost, and in many markets, particularly smaller or mid-tier ones, the operating expenses are outpacing the market’s tolerance for dues and fees.
Education around value and pricing will become essential. Members must understand that excellence has an economic foundation. When done effectively, this education reframes dues not as a cost, but as an investment in the ongoing vitality of their club facilities and community. Transparency, data-informed decision-making, and communication that connects dollars to experiences will be key tools in this process.
Even as wages and benefits continue to rise, the greater challenge may be the diminishing appeal of hospitality work itself. The pandemic accelerated a cultural reevaluation of “work,” and many line-level and mid-level managers in hospitality continue to seek better balance, flexibility, and affordability.
Compounding this issue is the reality of housing costs near desirable club markets. Many clubs are located in beautiful, affluent areas that are increasingly out of reach for their workforce. Line-level employees and managers are facing 30-, 45-, even 60-minute commutes each way. An unsustainable burden that will directly impact retention, service quality, and overall club culture.
Clubs that want to maintain operational stability must start exploring solutions like housing stipends, shared transportation, and employee lifestyle programs that demonstrate genuine care and investment in staff well-being.
Solutions Exist, But Not Without Tradeoffs
There are always solutions, creative, technological, or cultural, but every solution carries a cost, a sacrifice, and an impact on experience. The key is not to fear this tradeoff but to manage it intentionally. We see several clubs getting complacent and absorbing these costs and variables without innovation or consideration, which is beginning to drive division and dissension among members.
Strong clubs will lean into their culture and brand promise as the compass guiding these decisions. What do we promise to our members? What do they value most? What do we stand for beyond amenities? When these questions are answered clearly, even difficult operational or financial adjustments can be navigated transparently and effectively. In many cases, large long-term investments can lead to more long-term sustainable outcomes. After all, most private clubs are long-term, multi-generational owners and should consider that investment horizon perspective.
Whether the answer is greater operational efficiency, educating members about value and costs to deliver on the experience, reshaping or reinventing experiences, selective amenity focus, flexible membership models, or stronger partnerships with vendors and local communities, the direction must always align with purpose and promise. Clubs that define and live by their “why” will continue to thrive because alignment builds trust, and trust sustains loyalty.
The bottom line is that the private club of 2026 will not succeed solely based on luxury. It will grow in its ability to balance expectations, experience, economics, and empathy for members and employees alike. The next era of private clubs will be defined by those that embrace innovation without losing soul, that treat their workforce as their greatest asset, and that have the courage to redefine what “excellence” means in a modern world, which may involve unprecedented investment in capital for the current and next generation of family and membership..
