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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

News

Xponential Fitness launches X Pass as it reaches critical mass needed to aggregate its own estate

Xponential Fitness has launched a new cross-brand subscription model
X Pass is marketed as a first-of-its-kind service
Those signing up for the new service will be able to search for boutique studios near them
To drive the rollout, Xponential has appointed digital strategy expert, Danyal Ali, as president of X Pass

Xponential Fitness has launched X Pass, a package that allows subscribers to book classes across its entire portfolio of brands, essentially aggregating its own portfolio.

X Pass is being marketed as a first-of-its-kind model, offering consumers the opportunity to discover all the group's modalities.

The move comes as Xponential starts to achieve the critical mass needed to be able to offer a wide portfolio of boutique types in enough locations to make the service an attractive proposition and is likely to be emulated by other operators looking to scale and diversify.

It mirrors the kind of booking and loyalty schemes seen in multi-brand hotel groups.

Those signing up will be able to search for boutique studios near them – or search for studios in any city during their travels and view studios in that location. Access can then be booked up to an hour before classes start.

Prices range from US$19 for one off-peak class a month to US$249 a month for ten peak or 20 off-peak classes, plus other benefits, with members buying points online which can be 'spent' on classes that are bookable online or via an app.

Points expire after one year or if classes are missed or not cancelled by specific deadlines.

The total number of points needed to book a class vary, depending on factors such as geographic location, the type of class, the instructor, the time of day, space availability and class popularity, indicating the Xponential is deploying a form of surge pricing.

Sarah Luna, president of Xponential Fitness said: “After seeing great success with X Pass in test markets across the country, we're excited to officially roll the platform out on a national scale.

​​ “With X Pass, you can be a yogi on Tuesdays, a runner on Thursdays, and a dancer on Saturdays.

"We’ve built up great breadth in the world of mind-body balance, endurance, fitness, and strength across varying exercise brands, and X Pass gives members the flexibility to seamlessly experience all that Xponential has to offer."

To drive the US-wide rollout, Xponential has appointed digital strategist, Danyal Ali, as president of X Pass.

Ali joins after stints in leadership positions at Groupon and Gympass.

Founded in 2017, Xponential Fitness has built and curated a diversified platform of 10 boutique fitness brands across a wide range of verticals. Its portfolio of brands includes Club Pilates, CycleBar, StretchLab, Row House, AKT, YogaSix, Pure Barre, STRIDE, Rumble and Body Fit Training, which it acquired in October 2021.

The launch of X Pass comes as the company says it has bounced back strongly from the effects of lockdowns, announcing a 78 per cent increase in its Q4 2021 revenues, when compared to 2020 figures.

The performance in the last three months of 2021 helped the company increase its full-year 2021 revenues by a total of 45 per cent on 2020.

Xponential sold 846 franchise licenses and opened 282 new studios in 2021.

CEO, Anthony Geisler, expects the bounceback to continue in 2022, predicting new studio openings to number between 500 and 520 – an 81 per cent increase on 2021. He also expects revenue to grow by a third (33 per cent) in 2022.

“2021 was a milestone year for Xponential Fitness,” Geisler said.

"We were able to demonstrate the resilience of our business, and the momentum experienced in the fourth quarter places Xponential in a strong position in 2022.

"This performance was driven largely by consistent growth in our membership base.

"Paying members and visitation rates grew by approximately 70 per cent and 50 per cent, respectively, in the fourth quarter when compared to the prior year, as boutique fitness customers returned to the in-person fitness classes offered by our portfolio of ten complementary brands.”

“Our revenue and adjusted EBITDA are significantly higher today than they were prior to the start of the COVID-19 pandemic, up 20 per cent and 66 per cent, respectively, in 2021 vs 2019.

"We enter 2022 with the largest studio count in our Company’s history and we anticipate opening over 500 new studios this year. We look forward to continuing to drive revenue growth and margin expansion as we scale our platform in 2022.”

Xponential Fitness has launched X Pass, a package that allows subscribers to book classes across its entire portfolio of brands, essentially aggregating its own portfolio.
PTS,HAF,FIT,IND,PRO,PHR,TEC
2022/THUMB349218_551542_500910.jpg
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News

Xponential Fitness launches X Pass as it reaches critical mass needed to aggregate its own estate

Xponential Fitness has launched a new cross-brand subscription model
X Pass is marketed as a first-of-its-kind service
Those signing up for the new service will be able to search for boutique studios near them
To drive the rollout, Xponential has appointed digital strategy expert, Danyal Ali, as president of X Pass

Xponential Fitness has launched X Pass, a package that allows subscribers to book classes across its entire portfolio of brands, essentially aggregating its own portfolio.

X Pass is being marketed as a first-of-its-kind model, offering consumers the opportunity to discover all the group's modalities.

The move comes as Xponential starts to achieve the critical mass needed to be able to offer a wide portfolio of boutique types in enough locations to make the service an attractive proposition and is likely to be emulated by other operators looking to scale and diversify.

It mirrors the kind of booking and loyalty schemes seen in multi-brand hotel groups.

Those signing up will be able to search for boutique studios near them – or search for studios in any city during their travels and view studios in that location. Access can then be booked up to an hour before classes start.

Prices range from US$19 for one off-peak class a month to US$249 a month for ten peak or 20 off-peak classes, plus other benefits, with members buying points online which can be 'spent' on classes that are bookable online or via an app.

Points expire after one year or if classes are missed or not cancelled by specific deadlines.

The total number of points needed to book a class vary, depending on factors such as geographic location, the type of class, the instructor, the time of day, space availability and class popularity, indicating the Xponential is deploying a form of surge pricing.

Sarah Luna, president of Xponential Fitness said: “After seeing great success with X Pass in test markets across the country, we're excited to officially roll the platform out on a national scale.

​​ “With X Pass, you can be a yogi on Tuesdays, a runner on Thursdays, and a dancer on Saturdays.

"We’ve built up great breadth in the world of mind-body balance, endurance, fitness, and strength across varying exercise brands, and X Pass gives members the flexibility to seamlessly experience all that Xponential has to offer."

To drive the US-wide rollout, Xponential has appointed digital strategist, Danyal Ali, as president of X Pass.

Ali joins after stints in leadership positions at Groupon and Gympass.

Founded in 2017, Xponential Fitness has built and curated a diversified platform of 10 boutique fitness brands across a wide range of verticals. Its portfolio of brands includes Club Pilates, CycleBar, StretchLab, Row House, AKT, YogaSix, Pure Barre, STRIDE, Rumble and Body Fit Training, which it acquired in October 2021.

The launch of X Pass comes as the company says it has bounced back strongly from the effects of lockdowns, announcing a 78 per cent increase in its Q4 2021 revenues, when compared to 2020 figures.

The performance in the last three months of 2021 helped the company increase its full-year 2021 revenues by a total of 45 per cent on 2020.

Xponential sold 846 franchise licenses and opened 282 new studios in 2021.

CEO, Anthony Geisler, expects the bounceback to continue in 2022, predicting new studio openings to number between 500 and 520 – an 81 per cent increase on 2021. He also expects revenue to grow by a third (33 per cent) in 2022.

“2021 was a milestone year for Xponential Fitness,” Geisler said.

"We were able to demonstrate the resilience of our business, and the momentum experienced in the fourth quarter places Xponential in a strong position in 2022.

"This performance was driven largely by consistent growth in our membership base.

"Paying members and visitation rates grew by approximately 70 per cent and 50 per cent, respectively, in the fourth quarter when compared to the prior year, as boutique fitness customers returned to the in-person fitness classes offered by our portfolio of ten complementary brands.”

“Our revenue and adjusted EBITDA are significantly higher today than they were prior to the start of the COVID-19 pandemic, up 20 per cent and 66 per cent, respectively, in 2021 vs 2019.

"We enter 2022 with the largest studio count in our Company’s history and we anticipate opening over 500 new studios this year. We look forward to continuing to drive revenue growth and margin expansion as we scale our platform in 2022.”

Xponential Fitness has launched X Pass, a package that allows subscribers to book classes across its entire portfolio of brands, essentially aggregating its own portfolio.
PTS,HAF,FIT,IND,PRO,PHR,TEC
2022/THUMB349218_551542_500910.jpg

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For years the sector has used participation numbers as a measure of success, but policymakers are now calling for a change to measuring outcomes, so value can be established
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