They're having to refund the whole thing. The profitability was temporary based on an unrealistic offering. It's only a viable business model if it's possible to actually set up and provide the amenities - gourmet food, luxurious stay, expensive musical acts - which certainly hasn't been demonstrated.
Couldn't you say the same thing about homeopathy?
Which is obviously a viable business model. I ludicrously dishonest and insane one, but it makes money.