ClassPass is betting that more people in Japan want to go to the gym and that more visitors to the country want to maintain their fitness routines.

The New York-headquartered company, which provides access to gyms globally on a membership basis, started operating in Japan on Sept. 19. It has signed up 200 gyms and fitness studios in the country, mainly in Tokyo.

“I think there's the potential for Japan to be a very big market for ClassPass,” said Tom Aveston, CFO of Mindbody ClassPass, the company that owns ClassPass.

“The pandemic was very challenging for the industry,” but the fitness and wellness markets are steadily recovering globally, he added.

ClassPass, which was founded in 2013 and now offers its service in 30 countries, planned to enter the Japanese market in 2020, but had to delay the entrance due to the COVID-19 pandemic.

Data indicates that Japanese people are on average not very interested in going to the gym or fitness studios, but ClassPass believes that it can cultivate demand.

The fitness-club participation rate in Japan is between 3% and 4.5%, according to a report by Fitness Business, a Tokyo-based trade magazine. In the U.S., the rate was 21.8% in 2021, reports Health & Fitness Association, a Boston-based organization that represents the global fitness community.

“Booking fitness and wellness experiences can be complicated. There are hundreds and thousands of options to choose from,” Aveston said, adding that ClassPass could eliminate that market friction.

He added that ClassPass makes it easier to find and book fitness facilities with its subscription app service. ClassPass members do not need to directly sign up for a membership with gyms or studios.

Monthly fees range from ¥2,900 to ¥39,800, and users get credits that can be utilized at partner gyms and studios. The service can be used overseas.

ClassPass argues that its entry to the market will likely benefit fitness clubs.

One major problem is attracting customers during off-peak hours.

“There are many spots in fitness classes that are not sold. If they are not sold, revenue is lost,” Aveston said.

ClassPass introduces those empty spots to users so that partner operators have a chance to generate extra revenue during slow times.

Aveston added that 50% of ClassPass users are new to fitness, so ClassPass can help the industry grow.

Kohei Kayano, whose company runs pilates studios in the Kanto region, agrees.

“There are hours when the utilization rate is low. Our aim is to get customers to come to these spots and create new sales,” he said.

Kayano also said that since ClassPass can be used worldwide, he hopes to attract inbound tourists who want to maintain their fitness routine during their visits to Japan. The number of international tourists has been surging since the pandemic ended, and they may find it difficult to find gyms or fitness studios they can use casually.

“We are thinking about expanding our business overseas, so we are hoping that getting more inbound tourists will be a stepping stone,” Kayano added.

The Japanese fitness market has been recovering since the pandemic ended, while competition appears to be intensifying.

Fitness industry revenue grew 11% year on year to ¥650 billion ($4.4 billion) in 2023, according to data by Teikoku Databank. The figure was ¥708.5 billion in 2019.

Casual and low-price gyms are becoming more popular, with consumers being more price-sensitive due to high inflation over the past couple of years.

Chocozap, a budget gym, has gained 1.2 million members and increased its number of outlets to more than 1,500 nationwide in just two years.