I think a larger factor is gyms is people really liking the idea of working out all the time and while unable to commit to it they don't want to throw in the towel and quit the gym. Even if cancellation is just a phone call away plenty prefer to keep them.

Some economist should do an analysis of the long term prospects of a company that builds "screwing the customer" into their business model.

I'm consistently surprised at how many people think its okay to push the bounds of what's acceptable in this area. I've taken the view in my business that "no games" is the only way to build long term value and I receive feedback daily from my customers how refreshing our approach is.

It is definitely a win-win for everyone, including investors, when a business can build long-time value. I'd argue its the best type of win.