New York Studios Push Back on ClassPass With “Gym Loyalty Month”

(News) New York Studios Push Back on ClassPass With “Gym Loyalty Month”

A group of New York’s leading boutique fitness brands have declared August “Gym Loyalty Month”, in a coordinated effort to push back against the industry’s growing reliance on third-party booking apps — with the most prominent and talked about platform being ClassPass.

The campaign was launched by James McMillian, Chief Innovation Officer at Tone House, who stated that many studios are now “barely breaking even” and that low per-class payouts from aggregators are unsustainable for businesses.

Their message is simple: If you value your gym, book direct.

Why Studios Are Drawing a Line

ClassPass and similar platforms are designed to help studios fill unused slots — and in theory, introduce new people to the brand. But some owners feel like the numbers just don’t work.

They claim that discounted rates, one-off visitors, and thin margins make it harder to invest in what matters — better equipment, training and development for staff and higher quality experiences.

They state that direct bookings, on the other hand, help stabilize revenue, encourage commitment, and support stronger communities. And in a high-cost market like New York, every dollar counts

Who’s Backing It

The initiative started with an Instagram post from Tone House, but the movement has quickly gained traction.

Brands like AARMY and Barry’s — both The Fit Guide award winners — have thrown their support behind the movement, as well as other independent studios across the city.

It comes after warnings from brands like Fhitting Room, who cited “aggressive third-party booking companies” as a key factor in their decision to close locations in 2024.

What ClassPass Has To Say

ClassPass positions itself as a business partner, helping studios sell unsold inventory and reach new audiences.

In a comment on a LinkedIn post from The Fit Guide's co-founder Jack Thomas, the company said:

“At ClassPass, our goal has always been to help studios grow by introducing them to new audiences while also making sure we protect their direct business. We’ve seen that ClassPass isn’t a “fix-all” solution for struggling studios, but it can be a powerful growth driver for businesses that are already on solid ground. We recently shared data around this to dispel these myths and when we look at Mindbody-run businesses, where we can see the full picture of ClassPass’ impact, 99.5% have been better off after joining ClassPass for six months.”

The core tension between ClassPass and their studio partners lies in whether this traffic actually converts into profitable, long-term members — or whether it simply undervalues the product while adding operational strain.

Another angle, as ClassPass have stated publicly, is that the visits they provide taps into revenue that studios otherwise would not get, such as people that want flexibility and would not commit to one studio with a membership.

What This Could Change

This movement could spark stronger initiatives within boutique fitness for studios to double down on loyalty perks, member events, and value-packed pricing for those who book direct.

As the dust settles, this campaign could potentially lead to less reliance on marketplaces and a renewed focus on long-term member relationships over one-off visits. However, it’s worth noting that ClassPass has such a stronghold on the market now, with some studios relying on the platform for 50% or more of their revenue. This means that efforts to break away from the platform may prove hard and counterproductive.

The Fit Guide View

Whatever your view on ClassPass, we believe that they aren’t going anywhere, and the most productive thing studios can do is to have a proper strategy to get the most out of the platform.

We’re excited to continue the conversation with all parties to encourage the growth and development of boutique fitness.

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