Plans from ClassPass to charge 39 per cent more for its premium package went down like a 50kg kettlebell among London users yesterday, who took to social media to vent their fury.
In an email to consumers, the studio subscription service explained that its current offering (which allows unlimited access to clubs in its network – although users can only visit the same studio three times in a month) will soon increase in price from £79 to £110 per month. Meanwhile, a new base offering of £55 per month will provide access to five classes.
The premium package price hike prompted an angry response from Twitter users, with many suggesting they would cancel memberships.
Journalist Siobhán Norton wrote: “So @classpass has just whacked £30 on to its London monthly membership? Guess I'll be looking elsewhere for my gymmy needs.”
While a user called Tommy Toner tweeted: “Dear @classpass. On what grounds do you have to increase your monthly fee by 39%? That is scandalous! Me and you are OVER.”
According to ClassPass CEO Payal Kadakia, the change in pricing reflects a need “to create longevity with both our members and partners.”
"We’re encouraged by the engagement on ClassPass and the tremendous growth we’ve had that shows we are fulfilling our mission of helping people live a more active life, but we have to evolve our business model and adjust prices in order to create longevity with both our members and partners,” she said.
“We've also realised that a one-size-fits-all membership is not diverse enough to serve all of our members’ unique needs, which is why we have decided to roll out new plans. We wanted an easier entry point for new users who have an appetite for boutique fitness as well as the ability to keep offering an exceptional experience to those who love our unlimited product."
The controversy comes just weeks after ClassPass
incurred the wrath of London boutique studio owners over plans to reduce the amount of revenue paid to studios. Despite ClassPass eventually resolving the issue with 1Rebel and Core Collective, a number of studios were unmoved and announced their intention to leave the platform.
One studio chief who decided to leave told
Health Club Management: "I don't really think there's much longevity in the model for studios, as the rates are low and the monthly feeds are low.
"It's not really viable for us, but luckily we've never really relied on it anyway. We have had a few conversions from users, but certainly not loads and not as many as we were told we could expect."
A spokesperson for ClassPass wouldn’t confirm whether the new two-tier pricing structure would see a reduction in the percentage of a class sale paid to studio owners, but said: “Investing in our own business economics will set us up to expand our offerings in ways that directly benefit our partners by driving even more incremental revenue while also further validating the industry as a whole.”
They added that ClassPass users now have the ability to buy additional classes directly from partners when hitting their studio or package limits, offering greater opportunities for studios to upsell.
The emergence of fitness-based subscription services in line with the recent boom in boutique studios has provoked a number questions on who truly benefits from such offerings. To read an analysis of the impact third-party platforms such as ClassPass are having on health clubs – from the December 2015 issue of
Health Club Management – click
here.
