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ClassPass to discontinue unlimited memberships - caps monthly visits at 10
POSTED 02 Nov 2016 . BY Tom Walker
ClassPass CEO Payal Kadakia founded the company in 2013
Studio subscription service ClassPass is to cap the maximum number of visits its members can make to its network of boutique studios to just 10 per month – bringing an end to its unlimited memberships.

Customers currently on unlimited plans will be told of the changes later today (2 November).

The ClassPass business model is based on fitness fans paying a flat-rate monthly fee in return for a wide range of boutique exercise classes at a discounted rate – offered by operators who have signed up with the platform.

Prior to the changes, ClassPass offered two tiers of membership.

For £55 a month, members could attend five classes each month, with a maximum of two visits a month to any one studio.

The unlimited package cost £110 a month and allowed members unlimited access to classes – although they could only visit any one studio three times during the month.

The new higher rate package is expected to cost £105, including 10 classes per month and a limit of three visits to any one studio.

Kate Cracknell, editor of Health Club Management, commented: “The withdrawal of the unlimited package is no doubt a move to boost profits at ClassPass: boutique users are generally very engaged with fitness, so those on an unlimited package will use it very heavily – meaning significant, and possibly unsustainable, per-class payments from ClassPass to its network of boutiques.

"The decision to cap usage will no doubt be highly unpopular among ClassPass members, but the boutique operators are likely to look on it far more favourably. Although previously protected by the fact that ClassPass users could only make three visits to any one studio in a month, nevertheless studios were finding their efforts to sell full-price passes undermined by the discounted rates offered through ClassPass.

"However, with ClassPass usage now capped at 10 visits per month, we can expect to see more consumers going direct to their favourite studio and cutting out the middleman; many boutiques offer multi-class packages which now compare far more favourably, in terms of price per class, to ClassPass than was the case before the cap was imposed."

The move marks the second controversial change to ClassPass' membership terms this year. In May, the company came under fire from members after it increased the price of its premium package by 39 per cent.

In the past it has also incurred the ire of the studios taking part in the scheme over plans to reduce the amount of revenue paid to them.

Founded as a startup in 2013 by Payal Kadakia – who remains as CEO of the business – ClassPass’ backers include Google Ventures and Thrive Capital and it currently offers services in 36 cities around the world.
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Jobs    News   Products   Magazine
NEWS
ClassPass to discontinue unlimited memberships - caps monthly visits at 10
POSTED 02 Nov 2016 . BY Tom Walker
ClassPass CEO Payal Kadakia founded the company in 2013
Studio subscription service ClassPass is to cap the maximum number of visits its members can make to its network of boutique studios to just 10 per month – bringing an end to its unlimited memberships.

Customers currently on unlimited plans will be told of the changes later today (2 November).

The ClassPass business model is based on fitness fans paying a flat-rate monthly fee in return for a wide range of boutique exercise classes at a discounted rate – offered by operators who have signed up with the platform.

Prior to the changes, ClassPass offered two tiers of membership.

For £55 a month, members could attend five classes each month, with a maximum of two visits a month to any one studio.

The unlimited package cost £110 a month and allowed members unlimited access to classes – although they could only visit any one studio three times during the month.

The new higher rate package is expected to cost £105, including 10 classes per month and a limit of three visits to any one studio.

Kate Cracknell, editor of Health Club Management, commented: “The withdrawal of the unlimited package is no doubt a move to boost profits at ClassPass: boutique users are generally very engaged with fitness, so those on an unlimited package will use it very heavily – meaning significant, and possibly unsustainable, per-class payments from ClassPass to its network of boutiques.

"The decision to cap usage will no doubt be highly unpopular among ClassPass members, but the boutique operators are likely to look on it far more favourably. Although previously protected by the fact that ClassPass users could only make three visits to any one studio in a month, nevertheless studios were finding their efforts to sell full-price passes undermined by the discounted rates offered through ClassPass.

"However, with ClassPass usage now capped at 10 visits per month, we can expect to see more consumers going direct to their favourite studio and cutting out the middleman; many boutiques offer multi-class packages which now compare far more favourably, in terms of price per class, to ClassPass than was the case before the cap was imposed."

The move marks the second controversial change to ClassPass' membership terms this year. In May, the company came under fire from members after it increased the price of its premium package by 39 per cent.

In the past it has also incurred the ire of the studios taking part in the scheme over plans to reduce the amount of revenue paid to them.

Founded as a startup in 2013 by Payal Kadakia – who remains as CEO of the business – ClassPass’ backers include Google Ventures and Thrive Capital and it currently offers services in 36 cities around the world.
RELATED STORIES
ClassPass acquires Asian aggregator GuavaPass


Fitness subscription service ClassPass acquired GuavaPass, a fitness aggregator operating in Asia and the Middle East.
ClassPass under fire over 39 per cent London price hike


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.
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US private equity fund, Providence Equity Partners, is acquiring a majority stake in VivaGym from Bridges Fund Management, which will exit as a shareholder. Financial terms have not been disclosed.
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