Another risk for Inspirato is that pass holders will take full advantage of the travel opportunities. “The subscription economy works because they’re betting on people not using it that much,” says Rafat Ali, CEO and founder of travel intelligence platform Skift. “If the utilization is very high, that will affect their margins.”
Still, Ali expects the travel industry to increasingly adopt the subscription model as a way to generate customer loyalty.
“I wouldn’t be surprised if other luxury hospitality companies like Four Seasons could potentially look into something like this as well,” he says.
This story provided by Bloomberg News.