Inspirato's woes do not appear to be a reflection of the broader luxury sector. Perhaps luxury subscriptions, though, don't have as much value in the eyes of wealthy travelers as the company purports.
Inspirato, which offers a luxury vacation home and hotel subscription service for affluent guests, layed off around 50 staffers, or some 6% of its workforce yesterday, Skift has learned.
Skift received a tip about the job cuts, and Jeff Hartman, Inspirato’s executive vice president of marketing, confirmed the workforce reductions Thursday.
The staff cuts occurred in the company’s general and administrative area, including tech, business intelligence and human resources functions, he said, adding that it didn’t impact customer support services.
Hartman didn’t cite softness in demand as factor, but said the company is prioritizing “right-sizing” the business. He said Inspirato members and prospective members are returning and traveling.
In January, Inspirato cut 12% of its staff as it struggled with lower-than expected occupancy and slumping sales.
Monthly subscriptions to Inspirato’s homes run around $2,550.
Inspirato, which went public in a SPAC deal in February 2022, is trading at less than $1 per share, is not profitable, and has been struggling despite the luxury sector holding up in the current economic environment. In the first quarter, Inspirato recorded a net loss of $5.9 million, an improvement from the year-earlier quarter’s loss of $24 million.
Have a confidential tip for Skift? Get in touch
Photo credit: Inspirato reduced its workforce, its second such cut in 2023. Pictured is a home that was offered on its platform. Source: Inspirato Inspirato