Q2 2020 Travelzoo Earnings Call
[music].
Ladies and gentlemen, please standby todays conference is scheduled to begin shortly.
Please continue to stand by and thank you for your patience.
[music].
Hello, everyone welcome to the travels to second quarter 2020, <unk> financial results Conference call.
All participants have been placed in listen only mode and the floor will be open for questions. Following the presentation.
Today's call is being recorded.
The company would like to remind you that all statements made during this conference call and presented in this slide that are not statements of historical facts constitute forward looking statements and are made pursuant to the safe Harbor provisions of the private Securities Litigation reform.
Act of 1995.
Actual results could vary materially from those contained in the forward looking statements.
Factors that could cause actual results to differ materially from those in the forward looking statements are described in the company's forms 10-K, and 10-Q and other periodic filings with the FCC.
Unless required by law the company undertakes no obligation to update publicly any forward looking statements, whether as a result of new information future events or otherwise.
Please refer to the company's website for important information, including the Companys earnings press release issued.
Issued earlier this morning.
An archive recording of this conference call will be made available on the Travelzoo Investor Relations website at travels Sue.
Dot com slash IR.
No. It's my pleasure to turn the floor over to travels whose global Chief Executive Officer.
Holger Bartel and its chief accounting officer leases to Lisa will start with an overview of the second quarter 2020 financial results.
Thank you operator.
And welcome to those of you joining us today.
Please open the management presentation to follow along with her prepared remark.
The presentation and PDF format is available on our Investor Relations website I traveled do dot com.
Josh IR.
The first slide on page number three provides the effects of the Cobas 19 pandemic.
Revenues in the second quarter 2020.
Decreased year over year by 74%.
Two 7 million.
Lots of revenues in certain onetime expenses caused the net loss in Q2 2020.
We believe we were able to keep the loss relatively limited as we proceeded with quickly reducing operating expenses.
On the next slide on page four you can see most travel and entertainment company were severely impacted by the pandemic in Q2 2020.
The travel do as a global Internet media company like less impacted than others in the space.
Slides five and six detail our revenues by business segment.
When neutralizing FX changes.
The North Americas is this segment recorded a decrease in revenue of 77% year over year and to your business segment recorded a decrease in revenue of 79% due to the pandemic.
We saw advertising drop off significantly beginning in March 2020 in both Europe, and North America, due to advertisers, reducing or Kathleen advertising due to the pandemic.
In June we began to see a recovery.
As shown on page number seven the operating expenses were reduced significantly compared year over here.
We took extreme cost cutting measures due to loss of revenue, including Perillo Bath.
Reduction of marketing expenses.
A reduction of travel staff worldwide.
On page eight you see our cash balance increase from 14.4 million as of March 31 to 27 million.
Even after making a 6.8 million payment for the acquisition of Jack like club.
On slide nine you can see we have permit we reduced our cost structure to around 13 million a quarter.
So we hope to achieve breakeven in Q3.
Now please turn to slide 11, Holger will provide an update on the management focus.
Thank you Lisa.
For the long term success of the business and the strength of the brands.
It's important that we take advantage of an exceptional industry opportunity for sourcing travel entertainment and local deals fall members.
We already seeing irresistibly price deals come into the market, which were on hurdle previously our members love deals and Travelzoo will tell its members about the very best deals.
Also as explained in the law school, we focus on all free members flexible and worry free deals for future travel.
Travelers, who members are responding very positively to these.
We took the crisis, there's an opportunity to optimize our cost structure, we are making many cost savings permanent and I'm managing for higher profitability post crisis.
A very important goal for management is also to achieve breakeven and regain profitability in Q4.
Even already in Q3.
Growing checks flight clubs profitable subscription revenue Steve's on management's list of priorities.
Lastly in Q2, we increased our cash balance and generating positive cash flow is very important to us.
Now back to the operator.
[noise]. The floor is now open for questions. If you do have a question. Please press the star followed by blanking on your Touchtone phone, but this time once again, if you do have a question, ladies and gentlemen that star followed by one on your Touchtone.
Phones.
Please hold fall we poll for questions.
Our first question.
From Jim.
Barrington research.
Okay. Thank you.
Looking at the.
Sales and marketing and gene a numbers that you developed in the quarter.
A very good performance I Wonder if you could talk about.
The run rate you expect in those particular categories.
Over the next couple of quarters, you indicated you were cutting back some cost the ups and longer term basis, what should we be expecting.
[noise], so right now from where we all right now the run to expense rate for the company, including all the expenses in coastal Ceos Bobby in 2000.
When people one.
We'll be somewhere around 60 to 65 million west all those.
We're just coloring books and 30% from where we were before.
Okay and.
I'll be I wonder that kids, albeit the Jim that can change, but that's that's sort of what what we are for customer right now okay. No that's sort of a moving target I think given the environment.
I'm wondering if you could also talk little about the.
Impact to the pandemic on those who are sourcing your offerings. Because you indicated you have been getting some some good deals and I wonder if if that's also sustainable or even improving now.
Yes, it's really two things I want to travel industry is responding first.
He aligns with tails.
Almost every travel companies offering a little flexibility.
Just because the uncertainty for the consumer.
Of course, you must be will be very hesitant to book, if the I'm not able to cancel the trip. So that's the first thing.
Second the occupancy at hotels in as we all know occupancy and load factors that airlines are very depressed. So that's that's very good for US. Yes. There are lot of deals how long will it lost.
The industry says it will take two to three years for this recovery to compete to be picked to normalized levels. That's before.
So I see I think and I see there's a long period, we we will have a good amount of abuse common for went that's what gives you something that our members will enjoy and that's where we as a company will benefit.
And then maybe one last thing for this moment, what what are you noticing in terms of the receptivity.
Of your user base to the offers you're providing and how's that im influencing your ability to attract the advertisers to.
Give you more promotions.
Yeah.
We all model is quite flexible because we can promote travel office for two days to moral for next year right now what we are seeing instead and that's both in Europe, and North America that so I will remember some consumers in general I'm more interested in domestic travel you don't want to fly long distance.
At the same time be up lending trips for next year or long distance. So we are for example, two weeks ago. We had an all 40 North America for Europe. It was for travel for next year somewhat twentytwenty one in the battle for so almost the same responded just what we sold before depend Debbie.
And why well because the office come with flexibility. So we are taking away the risk for the members.
Thank you for whatever reasons, they still cannot travel in a internationally in 2021, they're not losing any money. So that's an offering that a ultimately the members respond to so again short term more domestic travel towards the end of the year. We're seeing a also travel from the yes for it.
In two places like Mexico, Caribbean and for next year, clearly a lot of interest in international travel.
Okay. Thanks, So I'll, let it go.
There for now thank you.
Our next question.
Comes from Michael Kupinski of Noble capital.
Thank you for the questions and you know congratulation for kind of pivoting on your model and actually building a cash position in this environment, it's a pretty impressive.
And so my question is.
As you look to these vouchers that are that are being sold.
Do you have a sense when these vouchers are going to be more when they're going to becoming a I guess being used so that obviously, you're you're somewhat on the hooked I guess or would that cash position you have so it's not like up a real number because there are some element of.
You know a liability so to speak out.
When these vouchers or or actually redeemed do you have a sense of how we should view as we go into next year your cash position and in looking at.
These vouchers in that way.
Yes, Hi, Michael So first afford yes, Oh, you funds on the vouchers and we are accounting for did we also reserving for that.
For example, this quarter, we reduced the revenues and Oh for mulch received by.
Yes, I, probably as to except number but theyre wrong, 30%.
Because we are expecting some refunds I don't think they will be as high.
So most of all specific she already expired.
Some of them more foot gravity in June so we have some numbers on refunds, they're actually lower than what you had expected. So that's good and then the cash balance will continue to increase but as you see a cash or what's very important for us last quarter. It still continue to be important but now it's important that we shift towards broker.
The ability you next you make money because that's oh, that's the best strategy towards the Bulls to the cash balance that.
The company has that we don't need to use into future for being some of these merchants and then keep in mind or will you. Some of the money that'd be collect for the buttress would actually go to the merchants.
Correct. It how much of a concern is there that there may be permit disruption and some of the businesses like baby you know some of the restaurants closing for instance, or maybe even some of the hotels going through some issues and bankruptcies and things like that how much of concerned do you have about that at this point.
No one knows certainly some restaurants with lose some hotels will Lewis that's <unk>, that's why we actually put the t. with hotels and restaurants, we like the model with the volatile because BBT into funds. We are in control and we are we are not that any risk at all if anyone goes out of business if anyone goes.
All the business or watch out loses we just keep the money pick tuticorin small.
Exactly that's great.
And then in terms of you you talk you talk to Jim about the cost reductions which are significant.
I guess I'm, just trying to get a sense you mentioned that you thought that the cost for next year, probably be about 30% plus or 60 million how much of those as we kind of look forward to maybe even the next year. How it sounds like you are completely redone re managing the business or reengineering the business to operate at much lower costs.
Structure can you kinda give us a sense, though.
Do you think that 60 million is really kind of like the base level or do you think that that you will you will probably need to invest for growth at that point or I'm, just trying to get a sense of what the 60 million in tails in terms of your revenue expectations. How you think business is coming back.
And how much of those reductions might be permanent reductions.
This assumption up to 60 million already into whats marketing expenses, which we you know we haven't spend on marketing and advertising cute tool very little in Q3, but ER. This long term or mid term vision I should see what's marketing expenses.
Sick and Michael It's really a question will focus we are focusing more and Ah we be out doing the things that ultimate do you have a productive for the company. We are restructuring process used and a week she believes that.
But even with that Oh cost structure and with these resources you can achieve similar revenues of what you.
What we generated before so.
For us, it's really an opportunity to rebuilds. This organization that we that we are even more profitable than what we were before.
But you know time will tell doesn't hold of question marks about traveling to St. Louis you also want to see the Wild Trust will be a big part of revenues in Q2, but no increase in BBC advertising revenues. It means that you with for example.
Typing revenues are.
Good deal was again to half of the revenues off what region read this quarter. So it's not just of Altrus, it's a well so that advertising revenues off.
I increasing again.
The one area, where we see particularly strong interest is tourism sports probably even more interest in what we sold before the crisis years.
Yeah significant advertising budgets into tours imports come to us as well because we are a brand.
That Uh huh.
Gets I will members to think about traveling to destination. They didn't even think about and that's what the tourism sports like as well as to tight at this time.
[noise].
Our next question comes from Ed Woo Ascendiant capital.
This open.
Yes. Okay. My question. My question is more on any differences have you seen between geography. It seems like Europe has a better control on the virus have you seen a a better recovery in Europe versus the the U.S.
Oh, Hi, Ed.
It's it's really roughly the theme I would see in Ah, Yes in Europe, we didn't have Uh huh.
A lead this news of increasing keeps us, but now again being we have keys to so I think in general consumers in Europe are more has you can maybe a little bit more risk averse.
In the U.S. in general consumers are little bit more risk friendly, but the environment is probably be worse. So net net it's about the see him and what we do you really see you know geography, if it's a it's it's your focus on the domestic travel Germans want to travel in Germany, the French between friends.
And the Americans, primarily within the U.S. fits that sequential trends that you will go up the war. So here from a auto companies that are reporting into future.
Oh, that's sounds good then in terms of travel is pretty much travel or the summer a pretty much a already baked in is there any chance of a big uptick in possibly August and maybe even September and our people really just focus on next year right now.
Ah, Yes force will focus on next year, that's a that's something that a woman bus up blending traveling 2021, because probably be properly I guess I got that optimistic that by then no things might be under control Olympics, you might be falling.
And then into short term it really depends on how Ah.
You know how the virus situation is evolving and you opened in North America to predict.
The good news is Ah you know the members now have a purchase some of these volanesorsen as soon as they can travel they can redeem them and that's why the would tell us a watson loves please.
The fast already in August or September.
It's something to one can predict right now.
Hi, and one final question is have you seen any difference in within the geographic regions in the U.S. I know we have some.
We started with will be hotspot in the North East in New York City, It and now it seems like the southwest Sunstate seems to be getting hit hard have you seen kind of like a wave in differences in how consumers responded or has it been about saying throughout the U.S.
It's it's about the seem everywhere the trends we see is number one that.
Our members are interesting Bobby most of the consumers into yes interested in.
More.
How should I call it remote locations or.
Not the Cds.
Interest to go into the same tall oak city or to go into Miami Beach is left the or than a trip to the Grand Canyon.
And second any kind of accommodation that provides more privacy is something that.
Consumers and our members are really seeking so for example internationally anything thats like a privately alone.
Is doing extremely well.
And see him domestically if it's like our.
Our patent accommodation gets a bit more private that's something that.
And our members enough.
Great. Thanks for answering my questions and good luck. Thank you.
Okay.
I'll turn back to Mr. Holger Bartel.
Okay, ladies and gentlemen, thank you so much for your time and support we look forward to speaking with you again next quarter have a great day.
Thank you ladies and gentlemen. This concludes today's teleconference. You may disconnect. Your lines at this time and have a nice day.
[music].
[music].
[music].
Hello, everyone welcome to the Travelzoo second quarter 2020, <unk> financial results Conference call. All participants have been placed in listen only mode and the floor will be open for questions. Following the presentation.
Today's call is being recorded.
The company would like to remind you that all statements made during this conference call and presented in this flights that are not statements of historical facts constitute forward looking statements and are made pursuant to the safe Harbor provisions of the private Securities Litigation reform.
Act of 1995.
Actual results could vary materially from those contained in the forward looking statements.
Factors that could cause actual results to differ materially from those in the forward looking statements are described in the company's forms.
10-K, and 10-Q and other periodic filings with the FCC.
Less required by law the company undertakes no obligation to update publicly any forward looking statements, whether as a result of new information future events or otherwise.
Please refer to the company's website for important information, including the Companys earnings press release.
Issued earlier this morning.
An archive recording of this conference call will be made available on the Travelzoo Investor Relations website at travels EU.
Dot com slash IR.
No. It's my pleasure to turn the floor over to travels whose global Chief Executive Officer.
Holger Bartel and its chief Accounting Officer, Lisa Su, Lisa will start with an overview of the second quarter 2020 financial results.
Thank you operator.
And welcome to those of you joining us today.
Please open the management presentation to follow along with our prepared remarks.
The presentation in PDF format is available on our Investor Relations website I traveled do dot com.
Slash IR.
The first slide on page number three.
Provides the effects of the Kobin 19 pandemic.
Revenues in the second quarter of 2020.
Decreased year over year by 74%.
Two 7 million.
Lots of revenues in certain one time expenses Cogs the net loss in Q2 2020.
We believe we were able to keep the loss relatively limited as we proceeded with quickly reducing operating expenses.
On the next slide on page four you can see most travel and entertainment company were severely impacted by the pandemic in Q2 2020.
The travel grew as a global Internet media company.
Less impacted than others in the space.
Slides five and six detail our revenues by business segment.
When neutralizing FX changes the North Americas is the segment recorded a decrease in revenue of 77% year over year into your business segment recorded a decrease in revenue of 79% due to the pandemic.
We saw advertising drop off significantly beginning in March of 2020 in both Europe, and North America, due to advertisers, reducing or counseling advertising due to the pandemic.
In June we began to see a recovery.
As shown on page number seven.
Operating expenses were reduced significantly compared year over year.
We took extreme cost cutting measures due to the loss of revenue.
Including Carrillo staff.
Production of marketing expenses.
A reduction of travel staff worldwide.
On page eight you see our cash balance increased from 14.4 million as of March 31 to 27 million.
Even after making a 6.8 million payment for the acquisition of Jack like club.
On slide nine you can see we have permit we reduced our cost structure to around $13 million quarter.
So we hope to achieve breakeven in Q3.
Now please turn to slide 11.
Coker will provide an update on the management focus.
Thank you yourself.
For the long term success of the business and the strength of the branch.
It's important that we take advantage of an exceptional industry opportunity for sourcing travel entertainment and local deals fall members.
We already seeing irresistibly price deals coming to the market, which were on hurdle previously our members love deals and Travelzoo will tell its members about the very best deals.
Also as explained in the last call, we focus on offering members flexible and worry free deals for future travel.
Travels with members are responding very positively to these.
We took the crisis, there's an opportunity to optimize our cost structure, we are making many cost savings permanent.
Managing for higher profitability post crisis.
A very important goal for management is also to achieve breakeven and regain profitability in Q4.
Or even already in Q3.
Growing checks flight drops profitable subscription revenue Steve's on management's list of priorities.
Lastly in Q2, we increased our cash balance and generating positive cash flow is very important to us.
Now back to the operator.
The floor is now open for questions. If you do have a question. Please press the star followed by watching on your Touchtone phone, but this time once again, if you do have a question, ladies and gentlemen that star followed by one on your touched.
Phones.
Please hold while we poll for questions.
Our first question.
Comes from Jim.
Barrington research.
Okay. Thank you.
Looking at the.
Sales and marketing and Gionee numbers that you developed in the quarter.
Very good performance I Wonder if you could talk about the run rate you expect in those particular categories over the next couple of quarters. You indicated you are cutting back some cost perhaps.
Longer term basis, what should we be expecting.
So right now from where we are right now the run to expense rate for the company, including all expenses and coastal Ceos, albeit in 2021.
We'll be somewhere around 60 to 65 million restore those.
Which is telling folks and 30% from where we were before.
Okay and.
Albeit I wonder that became obvious that Jim that can change, but that's that's sort of what what we are forecasting right now okay. No that's sort of a moving target I think given the environment.
I'm wondering if you could also talk little about the.
Impact to the pandemic on those who are sourcing your offerings. Because you indicated you have been getting some.
Some good deals and I wonder if.
Thats also sustainable or even improving now.
Yes, it's really two things all the travel industry is responding.
First.
Airlines hotels.
Almost every travel companies offering a lot of flexibility.
Just because the uncertainty for the consumer.
Consumers will be very hesitant to book if deal not able to cancel a trip so thats the first thing.
Second.
The occupancy at hotels and as we all know occupancy.
Load factors that airlines are very depressed. So that's that's very good for US yes. They are a lot of deals how long will it lost.
The industry says it will take two to three years for this recovery to compete to be back to normal levels. That's before.
So.
I see I think that feed as a long peer yet we are we will have a good.
Amount of give US conference when Thats, what gives you something that our members will enjoy and Thats, where we as a cold, but you will benefit.
And maybe one last thing for this moment.
What what are you noticing in terms of the receptivity of.
Your user base to the offers you're providing and how's that is influencing your ability to attract the.
Advertisers to.
Give you more promotions.
Yes.
We our model is quite flexible because we can promote travel office for two Dave to moral for next year right. Now what we are seeing is that and that's both in Europe and North America that our members from consumers in general are more interested in domestic travel you don't want to fly long distance.
But at the same time be up lending trips for next year long distance. So we for example, two weeks ago, we had an offer in North America for Europe. It was for travel for next year somewhat Twentytwenty one.
And that offer so almost the same respond is this what we sold before.
Endemic.
And why well because the office come with flexibility so.
We are taking away the risk for the members.
Thank you for whatever reason to be still cannot travel in.
Internationally in 2021.
Download, losing any money. So that's an offering that ultimately the members responded too. So again short term more domestic travel towards the end of the year we're seeing.
Also travel form to yes for example to places like Mexico Caribbean and for next year, clearly a lot of interest in international travel.
Okay. Thanks, So I'll, let it go.
There for now thank you.
Our next question.
From Michael Kupinski of noble capital.
Thank you for the questions.
And.
Congratulations for kind of pivoting on your model and actually building a cash position in this environment itself pretty impressive.
And so my question is.
As you look to these vouchers that are that are being sold.
Do you have a sense when these vouchers are going to be.
When they're going to be coming.
I guess being used so that obviously you're somewhat on the hook I guess with that cash position you have so it's not like.
Our wheel number because there is some element of.
All liabilities so to speak out when these vouchers or are actually redeemed do you have a sense of how we should view as we go into next year your cash position and.
And looking at.
These vouchers in that way.
Yes, Hi, Michael So first a forward yes.
If I just wondered about shows and we are.
Accounting for dead, we also reserving for that.
For example, this quarter, we reduced the revenues and.
So much received by.
So probably as to exit number, but the wrong 30%.
Because we are expecting some refunds I don't think it will be as high.
Most of all specifics you already expired.
Some of them more for credibly in June so we have some numbers on refunds to actually lower than what the expected.
So thats good and then the cash dividends will continue to increase but as you see cash what's very important for us last quarter. It's still continue to be important but now it's important that we shift towards profitability next you make money.
Because thats.
That's the best strategy to also bolstered the cash balance that.
The company has that we don't need to use into future for.
Some of these merchants and then keep in mind already some of the money that we collect for the vultures will actually go to the merchants.
Correct.
How much of a concern is there that there may be permit disruption in some of the businesses like maybe.
Some of the restaurants closing for instance, or maybe even some of the hotels going through some issues and bankruptcies and things like that how much of a concern do you have about that at this point.
No one knows certainly some restaurants with lower some hotels will close.
That's that's why we actually pattiki with hotels and restaurants, we like the model.
With the volatile because BBT into funds, we are in control and we are not that any risk at all if any one goes out of business. If any one goes out of business or watch out losses, we just keep the money back to the consumer.
Exactly that's great.
And then in terms of you talk you talk to Jim about the cost reductions which are significant.
I guess im just trying to get a sense you mentioned that you thought that the cost for next year, but be about 30% less or 60 million how much of those as we kind of look forward to maybe the next year. How it sounds like you are completely re re managing the business or reengineering the business to operate.
At much lower cost structure can you kind of give us a sense of.
Do you think that 60 million is really kind of like the base level or do you think that that you will you will probably need to invest for growth at that point or I'm, just trying to give a sense of what the 60 million entails in terms of your revenue expectations. How you think business is coming back and how much of those.
Reductions might be permanent reductions.
This assumption up to 60 million already into woods marketing expenses, which we we haven't spend on marketing and advertising in Q2.
Every little in Q3, but this long term or mid term vision I should say includes marketing expenses.
Second.
Mike It's really a question of focus we are focusing more.
And we.
We are doing the things that ultimately have a productive for the company restructuring process.
And we actually believe that.
Even with that.
Cost structure and with these resources you can achieve similar revenues of what the.
What we generated before so.
For us, it's really an opportunity to.
Rebuild this organization that we that we are even more profitable than what we will before.
But.
I will tell doesn't have question marks about travel industry. Louis you also want to see.
I will just be a big part of revenues in Q2, but no increase in DTC advertising revenues. It means that you with for example.
Advertising revenues are.
Getting close again to half of the revenues of what we generate this quarter. So it's not just of Altrus. It's also that advertising revenues are.
Increasing again and.
One area, where we see particularly strong interest is tourism boards, probably even more interest in what we saw before the crisis years.
Yes significant advertising budgets into tours imports come to us as well because we are brand.
That.
Gets our members to think about traveling to destination state didn't even think about and thats, what the tourism ports like us were lifted tight at this time.
Our next question comes from Ed Woo Ascendiant capital.
Your line is open.
Yes. Okay. My question. My question is more on any differences have you seen between geographies.
It seems like Europe has a better control on the virus have you seen a better recovery in Europe versus the us.
Hi, Ed.
It's it's really roughly the same I would say yes.
Europe, we don't have the.
The latest news of increasing keeps us, but now again be MBS cases, so I think in general.
Consumers in Europe are more.
Hey, Seaton, maybe a little bit more risk averse.
In the us in general consumers are little bit more risk friendly, but the environment is probably be worse. So net net it's about the seem and what we do you really see in all geographies. It's your focus on the domestic travel German swung to travel in Germany, the French between France.
In the Americans, primarily within the U.S. subsequent system trends that you will go up the loss or hear from other companies.
According into future.
That sounds good then in terms of travel.
It's pretty much travel or is this summer pretty much already baked in is there any chance of big uptick in possibly August and maybe even September and our people really just focus on next year right now.
Yes for sure we'll focus on next year.
That's that's something that.
Our members up lending.
During 2021, because prop properly guests are optimistic that by then.
No things might be under control Opex, you might be falling.
And then into short term it really depends on how.
How the virus situation is evolving and you opened in North America, it's hard to predict.
Good news is.
Members now have purchased some of these volanesorsen as soon as they can travel they can redeem them and that's why the hotels also lefties model because.
It's really does.
It's really a solution for the pent up demand are hesitating, but as soon as they can travel sqft are comfortable deacon goal. So.
So where does that will manifest already in August or September.
Is something no one can predict right now.
All right and one final question is have you seen any difference in within the geographic regions in the U.S. I know we have some we started with will be hotspot and.
Ease in New York City, It and now it seems like the southwest Sunstate seems to be getting hit hard have you seen kind of like a wait and differences in how consumers responded or has it been about same throughout the us.
It's it's about the seem everywhere the trends we see is number one that.
Our members intra Bobby most of the consumers into yes interested in.
More.
How should I call it remote locations or.
Not the Cds.
Interest to go into the same toffee Wheelock CD or to go into Miami Beach is left the than a trip to the Grand Canyon.
And second any kind of accommodation that provides more privacy.
Keith.
Consumers and our members are really seeking so for example internationally anything thats like a private the law.
Is doing extremely well.
MCM domestically if it's like our.
And accommodation thats a bit more private that's something that.
That element, but enough.
Great. Thanks for answering my questions and good luck. Thank you.
Okay.
I'll turn back to Mr. Holger Bartel.
Okay, ladies and gentlemen, thank you so much for your time and support we look forward to speaking with you again next quarter have a great day.
Thank you ladies and gentlemen. This concludes today's teleconference. You may disconnect. Your lines at this time and have a nice day.