Q2 2023 Inspirato Incorporated Earnings Call
Yeah.
Good day and thank you for standing by welcome to Dan Scotto second quarter 2023 earnings call. At this time, all participants are in a listen only mode.
The speaker's presentation, there will be a question and answer session to ask a question. During the session you didn't need to press star one one on your telephone.
Here, an automated message right advising a year had this race to withdraw your question. Please press star one one again. Please be advised today's conference is being recorded I would now like to hand, the conference over to your speaker today <unk> Investor Relations.
Okay.
Thank you and good morning.
Dave Colbert.
CEO , Brad handler and CFO Robert.
Yesterday afternoon, we issued a press release announcing our second quarter 2012.
Which is available on the Investor Relations website.
Got it.
Before we begin.
We remind everyone.
Sure.
Including but not limited to.
Our expectations for future operational and financial position guidance and growth prospects.
The strategy plan and market conditions.
Potential market.
These statements are based on assumptions.
Obligation to update the actual results to differ materially.
For you to our SEC filings for a more detailed discussion of additional risks.
In addition, during the call management will discuss non-GAAP measures are useful in evaluating the company's operating.
These measures should not be considered in isolation or as a substitute for financial results prepared in accordance.
Reconciliations of these measures to the most directly comparable GAAP measures are included.
With that I'll turn the call over to our CEO , Brian <unk>.
Thank you Carl and good morning, everyone.
Last few months have been a pivotal time creates fraud before covering our second quarter results and some of the recent travelers booking trends we're seeing.
And a few moments talking about our strategic investment and partnership with capital one.
Yesterday, we announced entry into a definitive agreement for a new $25 million convertible notes investment.
Capital one ventures.
That will enable us to continue enhancing our experiences to meet the evolving needs of the luxury traveler capital adventures looks to harness the potential of innovative companies that integrate well with that business and infrastructure.
Capital one customers are passionate about travel and we share a similar vision to find new ways to deliver luxury travel experiences with unprecedented service and certainty.
Over the past 12 years, we have worked tirelessly to build a premier luxury hospitality brand, we take pride in delivering exceptional value and service to our members and this summer we doubled down this approach with several member centric initiatives.
In response to the current dynamics of the luxury vacation rental market and to ensure we are delivering significant value to our members. We have communicated broad based 90 rate reductions across our portfolio of any strict control of the competition.
Including our recently launched early booking discounts that encourages members to book further in advance, giving members peace of mind that advanced booking at preferred destination will not sacrifice value or flexibility.
In addition to matching our low everyday nightly rates with our members travel needs earlier. This week, we launched <unk> broader rewards our first ever remember loyalty program in Ferrara rewards offers our most engaged members unique value added benefits and additional savings on that.
Each with increasing valuable pad.
We are really excited about these new programs and offerings as well as the progress on our initiatives aimed at optimizing our portfolio controlling costs and ultimately generating sustainable profitability.
Jumping into Q2, we delivered more than 47000 total nine 1% year over year increase while the average ADR resident portfolio was approximately $1750 per night, representing a slight increase year over year, when considering seasonality each metric is among the highest level.
<unk> companies.
Yes, looking closer to increase a nice delivered has largely been in hotels often with.
Lower 90 rate and accurate mark as opposed to our residents and while ADR increased they have been at the expense of lower occupancy rate, 72% in the second quarter of 2023 compared to 82% a year ago.
Overall, our second quarter travel behavior share similar characteristics as the broad short term rental vacation market and <unk> market. We have seen solid nights delivered in Edr's, a continued bias towards hotel and hurdle travel as opposed to residences in resorts and an uptick to our European destinations.
Largely at the expense of U S travel.
While our members we're not alone in shifting towards Europe , and urban based travel. These property type constitute a smaller proportion of our portfolio and urban based travel typically comes with lower average ADR and length of stay as a result, this shift in travel behavior had an impact on our second quarter results and is expected to further impact.
Revenues for the remainder of 2023.
It's also important to remember that our second quarter results are more representative of travel behavior and strength of the consumer over the past six to 12 months as opposed to the next six to 12 months from.
From a booking perspective second quarter dollars book decreased 15% to 20% compared to the first quarter of 2023, and the second quarter of last year. However, the recent formation of our members' success team, which is designed in part to further engage members has led to a slight uptick in bookings.
More importantly, we believe the actions taken this summer at lowering ADR instituting our advanced booking discount and launching its broader rewards will be important value enhancers for our members and improve the overall efficacy and our managed and controlled portfolio.
As a result of these bookings and travel dynamics, we are reducing our 2023 revenue guidance by $30 million at the midpoint to $320 million to $340 million.
Similarly, we are lowering our anticipated adjusted EBITDA loss to between 3 million and $45 million, primarily due to our reduced revenue expectations slightly offset by lower planned operating expenses.
No revised revenue and adjusted EBITDA guidance did not contemplate any benefits from inspiron rewards or the capital one ventures partnership.
Recent booking trends have further strengthened our conviction in monetizing our available capacity through strategic partnerships and our portfolio optimization efforts. While also highlighting the importance of the continued success of our <unk> product for good product for business platforms in terms of its product for good we sold $3 $7 million.
Trip in membership packages in the second quarter compared to $2 3 million in the first quarter and $1 2 million in the fourth quarter of 2022.
And proud of our business also had solid results in Q2 with approximately $3 9 million of sales.
To note that as of June 30. It is brought up for bidding product for business have generated cumulative sales of approximately $13 $5 million that only a small portion has been recognized as revenue. We believe these platforms cannot only serve as a material growth driver for inspire.
<unk> in the future, but we will provide a stable predictable revenue stream moving forward.
Finally, I want to thank our employees for their tireless work and dedication to ensuring the success of our new initiatives and member satisfaction with that I'll turn the call over to Robert to provide a bit more detail on our quarterly results.
Thanks Bill.
Before reviewing our second quarter results I'd like to take a minute discussing our path to profitability.
Past quarters diluted to these initiatives and more of a qualitative sense today I'd like to provide more specifics around the actions, we're taking to drive updating and help us achieve our profitability goals in 2024.
We've been decisive in executing our plans will drive significant savings.
Many categories these expenses payroll and non payroll.
After a detailed portfolio review, we have identified and taken action aimed at generating $125 million annualized lease expense.
This has largely occurred through giving notice of early termination and or non renewal of poor performing properties.
Next payroll while the decisions are never easy we are taking action to more appropriately align our cost structure to our current and future revenue projections.
Top of the January 12% head count reduction in July we reduced our head count by an additional 6% and made the decision to temporary hiring outside of the rule that provides support and service. We expect these actions to result in annualized savings of approximately $20 million finally, non payroll cost savings.
These to be both above and below the line and cover vendor renegotiations reduce booking fee to portfolio management initiatives and a decrease in professional services.
Cumulatively, we've not only identified but I've taken action on delivering more than $50 million of annualized cost savings that will be critical in achieving positive adjusted EBITDA in 2024.
Maybe going back to the second quarter total revenue of $84 million was flat year over year and comprised of $36 million of subscription revenue and $48 million of property level.
Principal run to cover some of the travel dynamics in the quarter. So shifting to subscription dynamic we saw an increase of 1% of subscription revenue compared to Q2 2022 and the decrease in pass subscription revenue was offset by increases in club subscription revenue and the portion of its Brian was good and as part of our business right.
Recognizing the subscription revenue.
Terms of subscriber activity, we ended the quarter with 15200 active subscriptions compared to 2700 at the end of the second quarter of 2022, the year over year net decrease of approximately 500 subscriptions is entirely attributable.
Attributable to reduced pass subscriptions, partially offset by a year over year increase.
In clubs prescriptions. The decreases have description was primarily due to fewer new sale as opposed to an increased resignation.
While we do expect our past subscription counts decreased through year end, we believe our recent initiatives, which are primarily aimed at increasing occupancy will help us deliver a nice.
Fortunate manner between our club members ultimately, replacing Bob subscription revenue with increased travel revenue.
Further as an offset to the decrease in active subscriptions. We sold approximately 200 is brought up a good packages in the quarter.
Which include a bundled and scrubbed ship at six months or one year trial I understood. This compares to approximately 850 packages in the first quarter of 2023 and totals approximately 2500 spread with good packages since inception through the fall 2022.
These numbers are not included in our subscription count that we have started delivering travel on exposing these highly qualified.
The benefits of this problem and it begins to be a small but growing number of conversions to our club in paas offerings.
For more on this in the future.
Cost of revenue was $65 million for the quarter, an increase of approximately $7 3 million or 13% compared to the second quarter of last year. The increase in cost of revenue between periods was primarily due to a 28% decrease in these expenses related to leases that have commenced over the past year at 15% increase in booking fee.
Primarily related to our experienced and bespoke travel program.
On our last call, we identified increased hotel booking as a coffee hope to reduce moving forward in the second quarter. Our focus on this area resulted in a decrease in hotel booking fees of 4% year over year, and 20% sequentially as a portion of net break hotel night shift to our leased hotels and restaurants.
Yeah.
Gross margin for the quarter was negative $11 million due to a $30 million.
Noncash impairment related primarily to one group of underperforming properties in a single geographic location exclude.
Excluding the impairment our gross margin would have been approximately $19 million or 23% of revenue compared to $26 million or 31% of revenue in the second quarter of 2022.
The decrease in margin, both as an absolute and percentage of revenue is due to the increase in cost of goods.
Importantly, we offset this increase with a decrease in our operating expenses, which were $35 million in second quarter, a 15% improvement compared to $41 million a year ago.
Operating expenses as a percent of revenue declined from 49% to 42% to period.
Improvement is primarily due to the reduction enforced in January of this year.
Heightened focus on reducing corporate expenses.
This equated to an adjusted EBITDA loss of approximately $12 million each of the second quarters of 2023 and 2022.
As we've articulated today, we've seen a slowdown in new subscription sales reduced paid residence.
<unk> delivered a shift from residents of hotel. These trends have contributed to ending the quarter, the cash balance of $46 million compared to $62 million on hand, and a coupon.
Most of our efforts around control costs. We have responded with several changes we haven't incentivize multiyear subscriptions to improve retention and stabilize our subscription revenue.
100% members' success team to proactively engage with our members lowered ADR is across our portfolio implemented early booking discounts to encourage longer booking windows and more certainty around future revenue and launch our first ever loyalty reward program.
With our current cash position cost savings, we anticipate to realize the remainder of the year and in 2024 and the financing we anticipate closing in the next several months, we are confident in our liquidity position moving forward, but unable to provide guidance on our anticipated year end cash balances is back in summary, I'm extremely confident in our ability.
To execute what it is.
Control and adapt to external forces remain incredible strides in the past few months and are extremely well positioned to improve our operating efficiencies and into the back half of the year in 2024.
With that I'll turn the call over to the moderator for Q&A.
Thank you we will now conduct the question and answer session.
To ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby while I compile the roster.
And our first question comes from sweat that that got Euro from Evercore ISI.
Okay. Thank you for taking my question. So you mentioned that the European travel you saw strength in European travel.
The supply you have there is.
Understood that is not as.
As high as compared to the U S. So could you talk about supply growth in Europe , how you're positioned there.
How you can leverage demand for international travel and then the second question I have is how does the loyalty rewards work. So could you talk about not only how they work, but also the potential impact that you expect to see a sustainable basis. Thank you what what are you targeting with that.
Graham Thank you.
Great. Thanks.
As Brent in terms of European travel I think we're actually well positioned.
Like I believe last year was somewhat of an anomaly in terms of how many people are actually traveling to Europe relative to the U S kind of view that as the final push I guess post COVID-19, we monitor bookings on a forward looking basis, and we feel like our European poor.
Folio, which also grew over the last couple of years is actually right sized and we don't anticipate having the.
Type of unprecedented demand next year that we had.
We also have.
Really listening to our members and thoughtful about our pricing of our domestic vacation rental properties I think in the luxury segment in particular there was just.
So much.
Inflated price and in 'twenty, one for bookings in 'twenty. Two there was really inflated demand when that started to kind of get back to a more realistic level, we probably were a little bit late in changing our pricing and we've been able to now address that actually with two changes.
Our pricing structure. So to answer your next question about Imperato rewards first I want to talk about something called our advanced booking.
Our advanced booking discount, which we also just launched yesterday, so rewards and the advanced booking discount for lunch yesterday very positive response from members a lot of bookings yesterday, a lot of people purchasing travel credit yesterday to be booking into the future and what we're essentially doing there is we're trying to offer better rates.
Our members if they book further in advance heretofore.
Our inventory at the highest possible price farther in advance because members would have the most flexibility with planning with airline and then also obviously with availability, we've now flip that a little bit and provided an incentive for our members to book further in advance and you can after one day were getting very.
Positive response, and we are seeing some change in behavior in terms of our reward program, which is on our website at <unk> dot com and the top now under rewards.
It's essentially a rewards program versus a points based loyalty program. There are three tiers. The tiers are achieved based upon our members and it is how many dollars they spend with us.
Year, and they're getting 100% of their credit in a year and then they get 5% of their total spend in previous years. The tiers are at 20030, 5000, and $50000 and yesterday just to give you one kind of real simplistic example, we added an engaged member who hasn't traveled with us.
Since 2019, but have paid their dues wanting to get to the top status level. So actually paid $50000 of travel credit. So they can become what's called upon team member discounts that they are able to achieve through the reward program range from.
10% on the low end to 20% on the high end based upon their status and based upon whether it's a seven night stay or a shorter stay in addition to that there is all types of other great benefits early booking discount all of the things our members have been asking for really for about 10 years or so we've put that together into a very.
The exciting rewards program and we anticipate that activity.
Kind of cascading upon itself and creating a lot more velocity from our members to book we've shared this comment before.
At any given time more than half of our members don't have a single reservation on the books for future travel. So this is a great opportunity for us to get our members to be engaged and traveling again and because.
We have the ability to have lower prices. So long as we can get back up to our target occupancy and we have the right.
In cloud, we're very optimistic that this should help revpar and our overall efficacy as we look into the end of the year and especially into 2024.
Okay. Thank you Brad.
Our next question comes from Brett Knoblauch <unk> from Cantor Fitzgerald.
Perfect guys. Thanks for taking my question I guess the first.
No.
The capital raised from capital one's venture I guess that partnership can you elaborate on what type of <unk>.
Revenue opportunities that partnership could create.
Sure.
First off I guess I would just say were remarkably excited about partnering with capital one from a that's a founder led business highly innovative.
Extremely disruptive in the space there are cloud based mobile first I'm really innovative business and if you've kind of followed that and you've seen that they've done a great job of attacking new businesses, including travel and really making an impact to their to their cardholders. They have 100.
More than 100 million customers. They are also.
Really one of the fastest growing small business card issuers, which is going to be we think very positive for our enterprise business platform and then beyond the card <unk> invested very heavily in travel and they become a big investor in Hopper Hopper has really grown capital one travel.
Has really kind of extremely fast growing they are also investigating airport lounges, a recently purchased.
Purchase philosophy, Black, which is a mobile first very high end concierge platform. They invested in <unk>, which is the <unk> platform and now with their investment is for auto.
Really looking to be able to access our luxury homes, and our service and certainty and.
We don't really have today the ability to share the details of the partnership but what I can say is that we have a definitive signed term sheet and that we are working on getting that.
Final definitive agreement done in the same timeframe as our shareholder vote. Upon closing, but we are extremely optimistic about that as being an outstanding demand generator for <unk> and what we can bring to the table in terms of our luxury platform. So if you asked me so I thought the best part.
It could be for its brought up it would not be a stretch for me to say capital. One I think it's a perfect marriage and we think that this is a game changer for us and we are extremely excited about getting getting done.
I know terms that maybe haven't been finalized yet I guess for modeling perspective should we assume that you guys are raising 25 million cash in the third quarter and I.
I guess any idea of what maybe the interest rate would be on that or should we just leave it out for the time being.
I think I can just direct you to the K one that.
I'm sorry to the 8-K excuse me to the 8-K that was released yesterday and I believe youll be able to find detailed on that investment there.
Got it and then is there any update on.
Your partnership with <unk>, how is that progressing.
So the.
Training has been completed with facts.
We view that as an extremely important partnership the summer season for retail can be a little bit slower, but we have seen some.
Kind of good progress there and as we move more into the season.
Expect to see.
Some further some further returns from the fax investing.
But with capital one in terms of there.
Our travel and innovative in the scale that they are bringing us in terms of that partnership plus back, which we view as the top tier luxury consumer brand, probably what youre starting to notice Imperato is becoming very partner friendly and when you think about ways for <unk> to grow in addition to <unk>.
Product for business and it's brought up for good it has to do with us leveraging the platform that we've invested a lot in June and the technology that we built so that we can become very good partners two meters and different application it could be demand generate express.
Okay, now that makes sense and maybe if I could ask one more.
On the portfolio optimization strategy, where are we at with that now are we completed so we expect continued portfolio optimization from the back half year and then on the occupancy rate.
72, or 73% is still well above industry standards, I guess, what occupancy rate do you need to get the business to be adjusted EBITDA positive that you guys are targeting.
Yes.
Thanks for the question Greg.
We've made a lot of strides as it relates to the portfolio optimization problem.
Probably.
However.
Locked in on 75% of all the deals that we're going to close on sometimes theres ones that we don't have a termination right to a certain date in the future and so for those that's why not all of that at this point in time, but when we say that.
The difference between us enter into an agreement to terminate.
And the actual data for termination.
A six month or 12 month period, so we're not seeing the real benefits yet of any of these terminations. We will start to see you guys start to bleed in really in Q4 is when the first route really will start to.
I was talking to one drew and then there'll be more as we go through 2024 as it relates to the.
The occupancy rate, 72% is a low rate for us historically, if you look across the different years. This will be the lowest rate. We expect that will be through the efforts that we've taken increasing occupancy rates at 80% plus which is consistent with where we've been in the past.
One other just one other note on occupancy mix is extremely important as well.
<unk> is a great product.
For the cloud, it's a great product for the member, but the path to club ratio is out of balance in terms of how many passed reservations are available relative to how many club reservations are available and as you know club reservations are considerably higher in terms of ADR. So.
In addition to increasing occupancy we will also get back to a more favorable mix between club bookings patent state revenue travel revenue first.
<unk> past subscription revenue.
Perfect.
I appreciate it guys. Thank you.
Our next question comes from Mike Grondahl from Northland.
Hey, guys. Thank you.
Press released it.
Yeah.
Multiple.
Yeah.
What's the average duration in years that those new subscriptions are going for is that two to three years or how long are those.
Mike This is Brent.
Cut out in the very beginning I'm going to repeat the question. If that's okay. I think the question is.
Help me understand the average duration.
Your subscriptions it seems like it's about two to three years did I get the question right.
Yes.
And the press release says that 80% of sales year to date have been multiple years. So I'm just curious.
Used to sell a one year plan.
Of the 80% that had been multiple years on average how long are they.
Yes.
Mike. Thanks for the question. So we've definitely seen and we've had a shift towards multi year arrangements.
On average I think the ballpark you gave two to three years is about right we do sell.
Those subscriptions up to five years in length.
Two years is very common. So there is there's definitely do you see as kind of a every every phase of that.
There's a lot more in that two to three range. Your range then.
I think it's important to note that last year. We also had quite a few months subscriptions as well so not just a year, but last year a lot of the subscribers that we were selling were in fact month to month and so.
I'm going from two plus years, where last year, the average was well under one year.
The benefits of that in terms of retention, we will start to see in 2024, and Thats really just the norm moving forward.
Got it got it.
Should we think about ISG and <unk> be going forward I mean, they are there.
Italy ramping up.
Are you putting more salespeople behind those efforts are.
Kind of how much attention are those getting.
So great question both of those groups have been impacted just like the entire company in terms of.
Corporate overhead in G&A, so theyre, both I'd say relatively smaller to where they were.
Like to talk about <unk> first we've made a lot of great improvements I mean, it's hard to believe that those businesses are less than a year old and so we have to go into a market in the nonprofit space can really learn from the ground up starting about a year ago. So what we've now figured out is what are the <unk>.
<unk> packages, how do we do the right how do we do the right marquee, what's the correct messaging are.
Repeat bookings is very high we don't have exact numbers, but we think we believe to the best of our knowledge, it's going to be around 65% to 70% of nonprofit who book and at that point that turnaround and book a subsequent event with us and we are increasing the dollar amount that we're offering.
So these nonprofit we started with 2000 and $4000 packages, we now have packages well over $15000 that are available to that market. So we do think that we're getting better our brand recognition is getting stronger and we anticipate strong growth within <unk> for good <unk>.
Our auto business is a much larger opportunity, it's become very clear that the opportunity on the business side is.
Very very strong in France, Brio, we now have nearly 50 business customers, who are working with the company every month, we're bringing on new customers extremely high satisfaction. These are employees who are given.
The gift of travel rather than say, a <unk> or an Amazon gift card and they are typically thrilled with what it is that theyre getting their employers are super happy added employer told me. The other day that they said that this is a pretty big company. They tend to have a memo to all leaders to take no more spot.
You can't get a spot on it you can only get at Brio.
Travel benefit so that that is a good question in terms of growth. It is an area, where we're doing some analysis now we'll have more information to share in the coming quarters, but we believe that there is a really strong payback period by bringing on new salespeople.
That business and that it will make sense for us to be investing in in sporadic for business and growing that platform. Its also just in terms of the core profitability of this product for a business that does really well also just because of the makeup and how efficient it is to get the larger sales.
Across the across the board. So we're very excited about about both and I think it's reasonable to expect that you'll see some continued positive momentum in those segments.
Okay, great. Thank you.
Yeah.
Okay.
And our next question comes from Tom Champion from Piper Sandler.
Hi, This is Jim on for Tom Thanks for taking the question I guess first one for Brent with regards to the capital one <unk>.
Partnership assuming everything goes through what sort of step one.
And <unk> can do from an operational standpoint that can sort of drive the business going forward.
Yeah.
Yes, Great question, Tom I think that.
The way to the way to think about this partnership is that.
In the Dorado has built a platform.
Service and certainty for luxury travel that's unmatched, especially when you consider the portfolio of homes that we exclusively manage and control.
Over the two years, where we had nearly 50% growth.
And well documented now that we grew too fast we had too much inventory.
We're now right sizing that inventory and at the same time, we're bringing an incredible demand engine into our business as a partner in capital one.
So what I would say is that.
The benefit is corrado will be that capital one will help us bring new subscribers more travel demand into our platform. We also see opportunities with philosophy black that capital. One just purchased we think theres great opportunity.
Opportunity there for incremental demand.
We also.
Really look at the partnership from the lens of.
As for auto for business.
Very very very big player in the corporate card space at really all levels of size.
We know that we do really well with our business platform, but getting help on the lead Gen side and on the demand side will be extremely.
Extremely helpful. There. So I think it's really about that'd be great demand partner for us and us providing capital one luxury travel and service uncertainty that's really.
Unobtainable in the marketplace and.
Detailed forthcoming when definitive agreement is announced.
Sounds great. Thank you and then I guess, one more for Robert So it looks like subscription revenue was down sequentially again in <unk> should we expect that cadence to continue through the balance of 'twenty three.
Yes.
Tom.
Alright.
Break out of this.
Skipton revenue is really it's a path story pass was down.
500, plus.
And when you look at the rest of the subscriptions.
Flat to up so it was really the question is around path and we do expect that for the remainder of the year at least.
We'll see some further deterioration around our number of pass holders.
That being said, we have a tremendously loyal group of SaaS members, who use past very aggressively.
Aggressively and very consistently as presidents and before.
Are there.
Sure.
Go into a far more chips per person.
Then all of our other members so while we do expect that decline to continue.
Because we've seen it for the last three quarters now there is a point where.
We expect that.
That will start to level out.
The past product really works.
Really well for people, who want to do a lot of traveling.
If you come with a tremendous value proposition for them.
Other people.
Post.
Regarding spend era.
You don't have to kind of drop back down to being be able to travel a few times, a year, which would be more consistent with the club member.
One thing to add there that that were learning pretty quickly and we're very excited about what we did learn post COVID-19 I guess, just pre COVID-19, a little bit and then post COVID-19, but path is that we are able to attract affluent traveler, who can put in their brain I'm going to spend $30000.
A year and I'm going to commit that amount of dollars and I'm going to travel now with inspiron rewards. We have a similar kind of pace do you could spend 20 or 30 of $50000, but instead of it being with a past algorithm, where you're eliminating where you can.
Go and you have to be flexible, but it's incredibly valuable now youre able to make a commitment to travel with its brought out and you're getting great benefits through its broader reward and you spend the same amount of money like maybe now youre going on that spring break trip exactly when you want and you're feeling great about the value that you get.
Versus with Pat gave you couldn't travel over spring break, but instead you have to travel the first week of March and Youre going to go to Europe instead of jet Com.
So we really now have two platform.
Our book value centric that drive the two different types of consumer.
Person, who are super flexible that travels a lot as well as that typically families who just want to make sure they're getting what they want when they want it and they can feel comfortable and confident in their bookings that theyre going to be getting great value with the club.
Great. Thank you.
As a reminder to ask a question. Please press star one on your telephone.
Wait for your name to be announced to withdraw your question. Please press star one again.
Please standby.
Yes.
Please standby.
Okay.
Yeah.
At this time I'm showing no further questions I would now like to turn the conference back to Brad handler for closing remarks.
And casting thank you.
I just wanted to thank everybody for joining our call today, we're extremely excited on a variety of fronts. We're excited about capital one we're excited about the launch of its broader rewards and our advanced booking discount.
Very excited for our loyal employees.
And for the opportunity we have ahead of us.
And the roadmap that we set for our profitability.
Next year.
<unk>.
We are out there executing and we look forward to talking to everybody at the next call.
Thank you.
This concludes today's conference call. Thank you for participating you may now disconnect.
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