(Correction: An earlier version of this story incorrectly stated the amount of ClassPass monthly reservations. ClassPasss books 1 million reservations each month and has booked over 18 million to date, a company spokesperson told Club Industry.)
ClassPass, New York, raised its monthly unlimited plan fee in New York City on Wednesday, according to multiple media reports.
ClassPass partners with health clubs in select markets across the country to allow fitness consumers to sign up for exercise class programming without purchasing a gym membership. The unlimited monthly membership rate in New York City increased to $200 per month after the fee increased from $99 to $125 in July 2015, according to a New York Post report. ClassPass' no-commitment membership plans in some other cities start at $45 per month.
The fee hike in New York follows recent unlimited plan increases in Atlanta, Austin, Dallas, Boston and Toronto, according to a Yahoo! Finance report. The unlimited monthly membership rate in Atlanta increased from $99 to $160 in March.
"We have to evolve our business model and adjust prices in order to create long-term sustainability with both our members and the market," Payal Kadakia, CEO, ClassPass, told Yahoo! Finance. "We've also realized 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."
The new ClassPass membership plans include five-pack and 10-pack bundles, according to a Business Insider report. In Boston, the five-pack is offered for $65 and the 10 pack is offered for $120. The unlimited membership in Boston increased from $119 to $180 for new members, with existing unlimited members grandfathered in at a $150 monthly fee.
ClassPass pays its studio and gym partners each time someone with a ClassPass books a class with the partner. ClassPass claims 50,000 weekly class reservations across its platform, according to its website. ClassPass says it helps health clubs fill unused class programming spots and pay participating clubs directly for every reservation, though the company does not disclose club reimbursement percentages on its website. Some of ClassPass' partners include The Dailey Method, The Bar Method, Barry's Bootcamp, exhale, Fly, Corepower Yoga and Xtend Barre.
"We’re encouraged by the usage on ClassPass and the tremendous growth we’ve had, but we have to be realistic about the economics to sustain it and are in the process of investing in the health of our business," a ClassPass spokesperson told Tech Insider. "We are evolving our business model and adjusting prices in order to create long-term sustainability with both our members and the market. We are committed to having an unlimited product as affordable and accessible as possible that still provides incredible value to our members while also growing and validating the industry as a whole."
ClassPass was valued at more than $200 million by venture capitalists in May 2015, according to a Wall Street Journal report, but Kadakia hinted that value could be closer to $400 million, according to TechCrunch.
ClassPass' domestic markets include Baltimore; Houston; Las Vegas; Los Angeles; Miami; Phoenix; Philadelphia; San Diego; San Francisco; Seattle; Washington, DC; Sacramento, California; Charlotte and Raleigh, North Carolina; Orlando and Tampa Bay, Florida; Portland, Oregon and Nashville, Tennessee. International ClassPass markets are in Vancouver, Canada; London; and Sydney and Melbourne, Australia.