Peloton and Hilton announce a plan that will include Peloton placing its bikes in all Hilton-branded hotels.
Key Details
- As stationary-bike-maker Peloton looks to expand its client base, the company announced a partnership with Hilton Hotels to place bikes in 5,400 Hilton-branded hotels.
- Each hotel fitness center will have at least one of the stationary bikes.
- The deal includes Hampton Inn, Embassy Suites, and Doubletree. Members of the Hilton Honors rewards system will be given a free 90-day Peloton trial.
- Most Hilton locations will have a bike by the end of the year.
Why it’s news
As Peloton comes out of the pandemic boom, relatively new CEO Barry McCarthy has been making efforts to keep the company afloat.
During the pandemic, the company enjoyed a massive uptick in demand as customers stuck at home subscribed to the fitness company’s programs. However, when the world reopened, demand dropped.
Some Hilton locations already have Pelotons which serve as a test ride for some of the company’s customers. In 2022 alone, hotel guests have completed 1.6 million rides on Peloton bikes.
As part of the efforts to branch out, Peloton has shifted gears to a mass-market approach rather than a direct-to-consumer brand. Just last week, the company announced its products would not be sold in Dick’s Sporting Goods.
The company now also offers bike rentals, sells pre-owned bikes, and has partnered with Amazon for sales.
As the exercise equipment company tries to gain new customers, more changes in strategy may be on the way.