Mar 20, 2023
Saks has formed a partnership enabling it to sell luxury travel subscriptions to its customers in stores and online.
Sales associates will introduce the Inspirato subscription service to customers beginning in May. Inspirato’s sales team will support the associates. Saks will receive a fee from Inspirato based on the number of subscriptions purchased by Saks customers, according to WWD. Sales associates making referrals earn a cut of the fee.
“At Saks, our strategy is centered on providing our customers with access to the very best in luxury,” said Marc Metrick, Saks CEO, in a statement. “As the largest luxury ecommerce platform in the U.S., it’s our mission to establish lasting, meaningful relationships with our customers and that includes delivering an assortment of experiences tailored to their unique lifestyles.”
As part of the agreement, all Inspirato members will be invited to apply for the SaksFirst Card to enter the luxury retailer’s rewards program. Based on their annual Inspirato spend, they may be eligible for an elevated SaksFirst status level. SaksFirst member perks include complimentary gift cards, participation in Saks Beauty Rewards, special event invitations, and early sales access.
Saks and Inspirato will also collaborate on multi-channel marketing efforts and brand activations.
“Like Saks, we focus on building long-term relationships with our members to help them live richer lives, handcrafting unparalleled travel experiences designed to delight and inspire,” said Brent Handler, co-founder and CEO, Inspirato.
According to its website, Inspirato offers access to “more than 1,200 luxury accommodations in exciting destinations worldwide, ranging from Europe’s best cities to quaint American ski towns, Mexico’s top resorts, and the most exclusive Caribbean islands.” Subscriptions range from $650 to $2,500 monthly, although yearly subscriptions are significantly less.
The partnership comes as the retailer’s latest Saks Luxury Pulse survey, fielded in January, showed that most luxury shoppers prioritize their travel spending, with 72 percent having already booked or planning to book a future trip. Of those, the top luxury items they buy in preparation for their journey are clothing, 60 percent, and shoes, 36 percent.
DISCUSSION QUESTIONS: What do you think of using Saks associates to sell luxury travel subscriptions from a third-party service? Does the overall marketing partnership align with Saks’ positioning and not carry too many risks?
“Smart move. Not only does the luxury consumer travel, but in general experiences have been re-prioritized through the pandemic and are a key purchase for younger generations.”
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