US: Luxury travel subscription brand Inspirato has announced a plan to streamline its operations, including laying off 12 percent of its current staff effective immediately.
As a result, Inspirato will continue to operate with a workforce of 800 employees, although that number is still more than 300 employees higher than it was in December 2020.
While the company did not disclose the specific reasons why it needed to streamline its operations to such an extent, Inspirato recently reported a net loss of $7.3 million when it made its most recent quarterly earnings call in December. At the time, it said the loss had been attributed to increased operating expenses and slower-than-expected signups for Inspirato’s Pass subscription service, which is designed to offer subscribers more flexibility, added value and more of a million travel options in more than 100 countries. destinations around the world, and debuted in 2019.
Brent Handler, Co-Founder and CEO of Inspirato, said: “We took this step to help reduce costs while responsibly managing Inspirato in the face of current macroeconomic uncertainty. While we are sorry to say goodbye to this talented group of colleagues, we believe the long-term opportunity for Inspirato remains strong.
“We believe this reduction will help us achieve our adjusted EBITDA breakeven target in 2023 while continuing to deliver the service and certainty that our Inspirato subscribers expect every time they travel with us,” he added.
In February last year, the private travel club closed their business combination with special purpose acquisition company [SPAC] Thayer Ventures Acquisition Corporation and began trading on the Nasdaq Stock Market.
In the process, Inspirato realized more than $100 million in net proceeds from the transaction and the combined company went public with an initial valuation of approximately $1.1 billion. At the time, the firm said it would focus its attention on improving its proprietary subscription technology, guest experience and personalization, as well as expanding its portfolio of 425 homes under management and a list of more than 18,000 members.
Inspirato manages a portfolio of carefully curated vacation options, including branded and controlled luxury vacation homes available exclusively to subscribers and guests, accommodations at five-star hotels and tour partners, and personalized travel experiences.
The company added that it will provide more details when it reports its financial results for the fourth quarter and full year 2022 later this year.
