Rich People Unite With Cheap Vacation Homes

Spend a fortune today, save a fortune tomorrow. If you've ever wanted to rent a mansion without the hassle of handing over several grand a night, and if you don't mind spending $15,000 to get that privilege, Inspirato is for you. Described as an Airbnb for the rich and famous, Inspirato profits from wealthy consumers who hand over the aforementioned entry fee, plus $2,500 annually for maintenance. In exchange, Inspirato members can save a bundle renting luxury vacation homes. According to Business Insider, Kleiner Perkins Caufield & Byers (KPCB) and Crunchfund (Michael Arrington's fund) are involved in a $17.5 million investment in the firm. “Hell yes I'm joining Inspirato,” Arrington wrote on his blog. “And Crunchfund is investing.” “The company operates on a ‘Costco' COST model,” Arrington explained. “They have long term leases on the properties and let members get them for a price that just covers the cost of those leases (and the cost of a concierge, housekeeping, etc.). The profits all come from a one time initiation fee of $15,000, and a $2,500 maintenance cost.” Arrington said that for families or a bunch of friends, “it's an extremely inexpensive way to feel like you are a super high roller while you're on vacation.” While this sounds like an interesting venture, I can't help but wonder how Inspirato will manage to achieve and maintain profitability. That one-time $15,000 fee sounds like a lot if one million people sign up. But after that, then what? The $2,500 maintenance fee may ultimately be used for just that – maintenance – especially if Inspirato faces the same legal troubles that plague Airbnb. For early investors who plan to cash out quickly, Inspirato may very well be the ultimate cash cow. But long-term, I don't think the company will ever be able to survive without tacking on additional fees. Follow me @LouisBedigian