If SoulCycle wants to keep pace with Peloton, it has to get creative. There are only so many locations SoulCycle can open that will have enough customers willing to shell out over $30 per class.
Meanwhile, Peloton can easily reach customers who live in remote places — as long as they have Wi-Fi access — and it doesn't have to pay studio rent to keep the business up and running.
So it makes sense that SoulCycle is launching Retreats by SoulCycle in 2020 as a way to earn extra revenue. On the one hand, it's a smart way to cash in on the brand's loyalty and recognition. Wellness retreats are on the rise, and if customers already know and love the brand, it's a natural fit for them to book a trip.
On the other hand, after the recent Hamptons Trump fundraiser backlash, we expect some longtime fans to be less eager to associate with the brand. Yes, they still might enjoy the workouts, but they won't want to pay to travel with the company.
We predict the retreats may attract customers that want to travel and are still loyal to the brand, but it won't be enough to move the needle closer to Peloton.
In other wellness travel news, Dubai has become an unlikely destination for traveler well-being. Though it does have a number of healthy offerings — like surfing, beachside jogging paths, and more — it will take a lot of marketing effort to get travelers to notice.
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