Is Classpass Good For Studios? It Depends Who You Ask – But The Numbers Don’t Lie

The popular booking platform has its critics, but there are strong data points suggesting ClassPass is a net positive for boutique fitness

ClassPass has fundamentally changed the boutique fitness industry since its inception in 2013, giving wellness enthusiasts around the world the ability to try new studios at the touch of a button, all without being tied down to a long-term membership. 

But not everyone is a fan of the popular platform that lets people book fitness classes and wellness appointments at discount rates. Some studio owners complain that the service cannibalizes their business since they earn less revenue from ClassPass bookings than traditional ones. Rival booking services have even cropped up claiming to offer a better deal for small business owners. 

Proponents of ClassPass point to its ability to serve as a powerful marketing tool at scale, connecting studios with a vast amount of potential new clients who can become long-term members, a service the platform effectively provides for free. 

While the truth may be somewhere in the middle, ClassPass CEO Fritz Lanman believes the platform does a lot more good than harm for boutique fitness studios, especially if it’s used properly – and he’s got the data to back that assertion up. 

Athletech News spoke with Lanman and several fitness owners and executives who’ve seen positive results from ClassPass to get their takes on why the platform is beneficial for the industry.

‘Incremental Revenue’ Is the Name of the Game

Much of the debate around whether ClassPass cannibalizes business stems from a fundamental misunderstanding of how the platform works, Lanman argues. 

ClassPass isn’t meant to function as the primary way a fitness studio fills its class spots; it’s designed to help studios fill otherwise empty seats with paying customers they likely wouldn’t have reached on their own.

“ClassPass’ goal is to help businesses monetize unfilled class and appointment spots with clients they would not have attracted themselves, at prices that maximize their revenue on that excess capacity,” Lanman tells ATN.

This type of service is especially important in an industry like fitness, Lanman argues, since class spots are perishable – if someone doesn’t show up for Jane’s 7:00pm yoga class, that revenue is lost forever. There also tends to be a lot of excess capacity (unfilled seats) in the fitness industry, so a service like ClassPass solves a problem many studio owners face. 

In essence, ClassPass’ entire reason for existing is to help fitness and wellness brands drive “incremental revenue,” or money they wouldn’t have earned without the platform. 

It does this quite well, according to the numbers. The average Mindbody business sees a 29% increase in incremental revenue after six months on ClassPass, the platform says. While ClassPass only has access to this type of data for businesses that use Mindbody software (the two brands are affiliated), there’s reason to believe the same holds true for businesses that use other providers.

In all, ClassPass estimates that 99.5% of its partners gain incremental revenue from being on the platform. What’s more, the company says it’s injected $1.6 billion of revenue into the global wellness economy since the COVID shutdowns of 2020.

Solidcore, one of the fastest-growing brands in boutique fitness, uses the platform primarily to “sell excess inventory,” and fill up “off-peak classes,” according to the brand’s vice president of strategy and insights Gillian Almeida

“ClassPass has been an invaluable partner in helping us optimize revenue while ensuring our direct business remains the priority,” Almeida says. “We’re data-driven at Solidcore, and in every way we’ve analyzed it, our ClassPass revenue has been truly incremental.”

ClassPass Users (Probably) Don’t Want To Join Your Studio – At Least Not Yet

A common fear among fitness business owners is that their loyal members will flee to ClassPass for cheaper prices. Why spend $200/month on a single membership when you join a platform that lets you sample many different studios, often for less money than you were originally paying? 

This seems like a perfectly reasonable concern, in theory. But there are a couple of key reasons why it doesn’t play out that way in reality, Lanman says. 

For one, ClassPass users tend to occupy a distinct demographic: younger, more price-sensitive consumers who crave variety. They aren’t usually the types of clients seeking an unlimited membership plan at a single studio (at least not in the beginning). 

Data shows that 94% of ClassPass users are new to the studios they visit, and 56% are new to group fitness entirely. 

The other main reason why a studio’s loyal members typically don’t jump ship and become full-time ClassPass users: they don’t get the same in-class experience. 

“Availability for ClassPass users is unpredictable, prices are unpredictable and they don’t get to choose their machine/bike/mat, or benefit from policies specific to direct bookers,” Lanman admits. 

The platform does this to incentivize people to pay for full-time memberships if there’s a studio they really like. That strategy appears to be working. 

ClassPass reports that after an initial three-month “shopping” period, 91% of its users’ subsequent visits were to the same two to three studios in 2024. For businesses able to deliver a strong experience, there’s an opportunity to win new members.

“You’re creating that first starting point with ClassPass, that first step through the door…and then they hopefully fall in love with all the different services we have,” says Karen Abouzeid, the founder of MIYU Beauty and Wellbeing, a yoga and Pilates studio in Virginia. 

As a result, ClassPass converts more users to direct studio members than it takes from studios, Lanman reports.

Nothing’s Free in This World … Except a Listing on ClassPass

ClassPass’ other chief selling point: free exposure. It doesn’t cost any money to list on ClassPass, and brands that appear on the platform gain access to over two million users – a mom-and-pop Pilates studio can find itself listed next to group fitness giant Barry’s on someone’s app. 

This can be very helpful for new brands looking to make it in the crowded, competitive world of boutique fitness. 

“It’s amazing exposure, especially for a new business,” says Steph Rountree, the founder of Bolt Fitness in Chicago. “Every client that comes in ClassPass is an opportunity for that gym. You never know down the line if maybe they’re going to join your gym. Maybe they’re going to buy a pack from you; maybe they’re going to buy your merchandise, and that’s one (more) person walking around with your branding.”

And while it’s true that studios earn less from a ClassPass booking than they would from a normal purchase (anywhere from 40 to 90% of the standard retail price depending on demand level) it’s possible for brands to recoup those costs by not having to run as many ads or offer discounted rates to get people inside their doors. 

“When businesses account for the discounts they offer and the marketing costs they incur when selling directly, they can often earn more per spot through ClassPass,” Lanman says.

Numbers Don’t Lie

It’s clear that ClassPass presents some compelling benefits for boutique fitness brands. While none of these data points and customer testimonials should serve to minimize the real-life concerns some business owners have expressed when using ClassPass, Lanman is confident the platform is driving the boutique fitness industry forward.

As evidence, he points to the platform’s impressive retention rate: last year, 95% of businesses that made over $50/month on ClassPass chose to stay. 

“If a partner finds that ClassPass is not serving them for whatever reason, they are free to leave the platform whenever they want,” he says. “The fact that very, very few do is strong validation that the model we have built works as designed.”

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