Planet Fitness to increase membership fee for first time in nearly 30 years
Planet Fitness’ classic gym membership will get $5 more expensive come summertime. The fitness chain is raising its classic membership to $15 a month for new members.
Planet Fitness’ classic gym membership will get more expensive for the first time in 26 years.
The cost of the classic membership will increase by $5 to $15 a month for new members, Planet Fitness executives said Thursday as they discussed the company’s first-quarter results. The increase will go into effect in the summer.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The fitness center chain has charged a monthly $10 fee for the tier for nearly three decades.
"Only new members who joined after it goes into effect will pay $15 for a monthly membership fee," CFO Thomas Fitzgerald said. "Current Classic Card members will continue to pay $10 for the duration of their membership."
PLANET FITNESS NAMES COLLEEN KEATING AS NEW CEO
It had trialed three different price options prior to landing at $15 per month, Fitzgerald said.
He said Planet Fitness is seeking to "further enhance the average unit volumes for our stores" with the membership price increase.
The company’s more expensive Black Card membership did not receive an increase in price. That currently has a $24.99 monthly fee.
However, it does have plans to do Black Card price tests beginning around the same time the classic’s hike becomes effective.
Planet Fitness does "take the Black Card price up every couple of years," Fitzgerald noted. It most recently did so in 2022.
The Black Card membership accounts for more than 60% of its new customers, according to Planet Fitness executives.
CLICK HERE TO READ MORE ON FOX BUSINESS
Overall, roughly 19.6 million people owned a Planet Fitness gym membership as of the end of the first quarter.
The company generated $248 million in quarterly revenue and $34.3 million in net income. Headwinds like a "shift in consumer focus in the New Year to savings and concern over the increase in COVID infections and other illnesses" affected its performance, Benson said.
There are nearly 2,600 Planet Fitness gyms worldwide.