Mike Linenberg: With respect to the distribution of Sunseeker, I know that you are going through third-party channels, which I know historically was not the model for Allegiant. Can you tell us as of now maybe what you’re booking through allegiant.com versus third-party channels? And I’m just curious, out of the 18 million people in your customer database, what’s the uptake of them? Would you say that the majority of people at Sunseeker today are out of that 18 million database or are these just entirely new, clients, new customers?
Scott DeAngelo: Hi, Mike. It’s Scott. I’ll start and let Micah chime in. So right now the majority, I put it at like 80% to 85%, and Micah you’d correct me, are coming directly either to sunseekerresorts.com or via allegiant.com. So that’s great news that we’re seeing the majority of bookings without requiring both the added cost and the disintermediation that comes via OTA. In terms of the majority of folks that are staying, back in January, call it, you’ve seen it go from about like three quarters to one quarter in favor of Allegiant customers to now close to 50-50, while the overall pie grows. So it’s a good story that, yes, we’re driving a lot directly and through the email, but that proportion as the pie has grown has become smaller meaning that more other people are coming into the Allegiant Travel Company family, if you will, many from places that Allegiant doesn’t currently serve or serve in earnest like Atlanta or New York City, et cetera.
Micah, I’d invite you for any additional commentary.
Micah Richins: The only thing that I’d add to that, Scott, is that as you mentioned in Q1, we were just in the very early stages of ramping up OTA productivity. So for example, when you looked at January, I mean, we booked less than 15 rooms. By February, we’re booking 300 to 350 and by March upwards of 1800 to 2000. And we think that will continue to grow. One of the things that we think, I think Scott mentioned that it’s obviously best for us to produce as much as we can through G4 Direct as part of packages. They have long lengths of stay. They have really good rates. And then, obviously, anything that we can book directly to our own website and/or through group business is our priority. But third-party will always be a good partner for us and it’s important for us to continue to grow that.
And so you’ll see our sales and marketing teams, particularly over the next several months, working to not only establish, but then make them make our partnerships that we have already established now more effective, work in marketing programs with them and see better production out of the OTA partners. But I think Scott nailed it the right way. We have a priority of how we’d like that to happen, but they are a key component for us.
Mike Linenberg: Micah, is that $1800 to $2,000 in March that is that’s a monthly booking rate? Is that?
Micah Richins: No, that’s an actualized in the month. So on a go forward basis, yes, in a go forward basis, you’d expect that to be somewhere in the $2,000 to $3,000 a month or so.
Mike Linenberg: And then just my second question, with respect to this call it, this DOT, I guess, consumer protection plan or benefits as they characterize. From what we hear, you have this refund element that kicks in, I think, in the next month or so, maybe it’s like at the end of June and the transparency piece. And carriers have come back and some have said that it disproportionately impacts low fare carriers. It’s ultimately going to race across to the consumer which is actually, do you think that it is going to add cost, so it’s going to make it harder to offer lower fares. But what are the gating issues? It seems like some of the refund elements are already being done today, but it does seem like we’ve gotten feedback on the technology piece that the industry may not be ready in six weeks to meet the various elements of what the DOT is requiring. Your thoughts on that?
Drew Wells: Sure. It’s Drew, I’ll start and we’ll probably keep it pretty high level. This is all pretty fresh, right, and we’re trying to work through it. Yes, I think we do comply, particularly to the refund language. I think we comply with quite a bit of it already. I’m proud of how we’ve addressed a lot of that around cancels in particular. I think there’s a little work we need to do around the delay side. But in terms of gating or how ready we’ll be in six, we still need to kind of do some work on that. But I don’t think it’s quite as big of a lift given what we’ve already done to date. And not a lot of commentary on the transparency part of ancillary fees. I think you still need to do a lot of work to understand what that’s going to look like in the booking funnel. So, sorry to keep it may be a bit vague for today, but we’re still working through just like everyone else.
Greg Anderson: Can I just add one thing, Drew? Mike, this is Greg. Just on the refund point Allegion, we talked about this over the years, but when we have cancellations with our customers, we issue them actual what’s called a pay maneuver, up to $300 and so we compensate our customers when we have cancellations. We’ve been doing that. I think we’re one of the unique carriers in the U.S. to do that. And so when we talk about IROPs, that’s a big chunk of the IROPs. So just wanted to point that out that we’ve already for years have tried to take care of our customers in those difficult type of situations when there’s a cancellation.
Operator: Our next question comes from the line of Dan McKenzie from Seaport Global.
Dan McKenzie: I know you’re not guiding to the full year obviously, but the street’s pretty divided. You could drive a Mack truck through estimates. I think you got a low of $2.55 to over $7. And I guess just based on what you’re seeing for the summer, can we start to eliminate either the high end or the low end here? And I guess as part of that does the current plan contemplate profitability in each of the quarters?
Robert Neal: Hey, Dan, it’s BJ. I’m going to shy away from giving guidance in the third and fourth quarter. There’s a lot of moving parts as we’ve talked about today, one which is execution of the CBA with our pilot which will have an impact on full year results as though the timing of Boeing delivery and one of their airplanes can be placed into service. And one that would be more immediate is around just around some of the improvements in Navitaire that Drew has been speaking to. So as you can see, just a lot moving and so apologies for dodging the question.
Dan McKenzie: I guess second question here, leg room plus seems it’s now part of the booking process. I can see it there, but it doesn’t look like you’re really monetizing it yet. And I just wonder if you could remind us, when did that start exactly and where are you at with this program? And then I guess what is the kind of target benefit that this could potentially provide?
Robert Neal: Yes. So we started testing the Allegiant Extra layout 2019, I believe. And of course, ran right into the pandemic and kind of got derailed a little bit through there. We announced probably, what, 18, 24 months ago, we were going to bring this to the full fleet. In addition to putting it on all MAX aircraft, with about double the number of seats, a little bit less than double the amount of premium seats. So, there’s a little distinction between Allegiant Extra, which is kind of an all-inclusive by Allegiant standards product that has the extra legroom, comes with the priority boarding, the dedicated overhead bin space, and now a free snack on board, which complements very well for our cardholders who will get a free drink and really, maybe not to the full extent but rival kind of a Delta Comfort Plus type of experience, which I think is a remarkable perk there.
So, in terms of monetizing, right, it’s not only a few, what a portion of our fleet, 15 aircraft, with 11 more, primed for this summer. So, I think there’s a lot left to go here in terms of experimentation with pricing and product mix. But so far, we’ve been responding to what our customers say is valuable to them and led us to where we are today. So still in the infancy, I think, of where this will go but absolutely thrilled with what we’ve been able to do with the product and monetization thus far.
Operator: This concludes our Q&A session. I will now turn the conference back over to Maury Gallagher for closing remarks.
Maury Gallagher: Thank you all very much. Appreciate your input, and we’ll talk to you in 90 days. Have a good day.
Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.
