Conor Cunningham: Okay. That’s helpful. And then you mentioned the Sunseeker contribution and how it’s going to take a little bit to get to maturity. But can you just speak what needs to change there? Is it really just an occupancy comment? Or is there induction costs that are kind of hitting at the early half part of this year? Just any thought process around that.
Maurice Gallagher: There’s going to be some additional costs just to get it finalized while we opened probably quicker than we ideally would have liked be but they’re doing very well, putting all of it together. The — on the — just the revenue side, there’s just a normal growth that you go through. We were unfortunate again, that we slipped from a planned October opening date into December. And advanced bookings as a result, were being pushed in the most difficult of the year, the end of the year, December is always the weakest sales month. But we’re seeing an uptick and the like. I think the really good news is that it’s been [indiscernible] well received on the food and beverage side and very, very nice crowds and things down there. The [indiscernible] are coming. Mike, do you want to just give a little quick overview on what’s going on. Micah Richins is running the show for us down there.
Micah Richins: Happy to, Maury and I appreciate the introduction on that. We’re doing a lot of things over the past 45 days here at the property. Maury mentioned that we opened with a couple of the venues not ready to go that have recently coming online or have come online already, one of them was the rooftop pool. We brought that opened last week. We’ve got one of our main restaurants, Blue Line [ph] which will come on this week. And we opened in December without one of our towers, one of the sweet towers Iris. And that will also open up — it actually opened up on Friday. We’ve been able to host several groups here in January and we’ll host several more in February. That bodes well for us. We need to be able to put group business through the house and then let them talk about the services they get.
So we feel like we’re on the right track. The property is performing well. And the last thing I would say is the shout out to our employees. Literally every — it seems like every bit of feedback that we get, even if someone is noticing a shortfall. They rave about our employees, they rave about how hard they work, how much they enjoy being here and how attentive they are to the customers. So we like where we’re headed and we’re going in the right direction. We just need to keep building.
Operator: Your next question comes from the line of Duane Pfennigwerth with Evercore ISI.
Duane Pfennigwerth: Maybe I’ll stay right there. So can you just expand on what you were just saying. Can you let us know when you get to the full operational room count of 750 or maybe like a room count by quarter until you’re fully there?
Micah Richins: Absolutely, Duane. This is Mike. We’ll be — we’ll actually have about 700 rooms occupied as of tomorrow. We start to host a couple of groups. And then we’ll be the full 785 by probably the end of this month.
Duane Pfennigwerth: That’s great. And then maybe for you or Maury, any anecdotes you can share on — I know it’s early but on distribution so far, attach rates on allegiantair.com? Is this being purchased by customers who happen to be going to Panagora anyway? Or are you able to convince people to kind of make the trip given the proposition down there? And how do you think about other channels like OTAs over time?
Maurice Gallagher: Let me put an overview on that. We have this very robust database. We’re upwards of 15 million e-mails that we’re sending out. And unfortunately, we didn’t get started as soon as we probably should have, Duane. And so what we’ve been doing the last month, 6 weeks is introduction stuff. And I’ll let Scott DeAngelo and Mike, will give you some overview on that. But we probably are going to see that start to really, I hope — it’s doing okay and we see some good results when we have sales experiences. The word sales seems to be very powerful with the guys were purchasing. But it’s just got to build. We’ve got to find the right avenues and the like. We’ve decided to go with the OPA point [ph] right now just to make sure we can get ourselves going.
The interesting thing when you look at the OTAs, they really aren’t that impactful as the cost side on very much percentage-wise. It’s not like the entire place is going to be sold by the online travel agencies. So that will be a nice way to boost the sales in the near term. Scott?
Scott DeAngelo: Yes, a couple of additional thoughts. Just reiterating one of the points I raised in my opening comments. Right now, about 2/3 of the bookings are coming from Allegiant customer. So customers that we can match to the database, regardless of whether they bought it at allegiant.com or the Sunseeker Resort website. And you can look back for a couple of other stats I mentioned about how many are rewards members and cardholders. On the OTA front, the other thing we discovered in the last couple of months but early once it opened was the amount of website traffic coming from big metro feeder markets like Atlanta, New York and Chicago. And so when you think about the 15 million customer e-mail database that Maury mentioned, while that does have strength in the Midwest and other feeder areas, right?
We don’t play out of that land and we don’t really serve New York City and Chicago in earnest. And so as a result, the OTA also became a great way to be able to reach those customers that we don’t “know”. And my guidance — so over to you [indiscernible] for any final thoughts.
Unidentified Company Representative: No, I think that’s exactly right, Scott. I think the final thing I would say to you, Duane, is something I mentioned is — for us, a good chunk of about 33% or so of the business that we will have here at the property will be related to groups. And for us, January and February have been critical in housing and handling those groups and then making sure that we execute on them. That’s — it’s easier said than done in a property that’s been open for 45 days. It’s important to note that they have gone well. Our clients have been very, very happy and excited. Groups are notorious for trying to avoid new properties, specifically because they are challenging and there are all kinds of kinks that need to be worked out but we’re excited about the responses that we’ve gotten.
Those people become raving fans and will speak to other people who can bring us business that will help us for what we think we’ll see at the back half of ’24 and certainly into ’25.
Operator: Your next question comes from the line of Mike Linenberg with Deutsche Bank.
Mike Linenberg: Just a couple here and maybe just to kind of continue down this theme on Sunseeker. You’ve given us the number of rooms. You’ve given us the occupancy rate and the daily — average daily rate. As we sort of multiply that out to get to a top line number, what would be the gross up to get to a final number? Like what percent of total spend is does maybe the room piece represent? Like if you’re staying there, is there another 50% on top of that you ultimately spend at either the golf course, the restaurants, et cetera. I’m just trying to get to a top line number here for Sunseeker.
Micah Richins: Yes, I feel like I think 50% is close. I guess it depends on the customer. It depends on how many people are in the room. But by the time you look at the 20 different venues that you got on property to consume food and beverage which incidentally has been performing extremely well, when you add to that, the opportunity for SCA [ph] for retail and certainly for golf, I think that’s a good number to use as a measure.
Mike Linenberg: Okay. Great. And then just my second question, on the OTA piece, I mean, this is very un-Allegiant to actually do some distribution outside of your control. Is this just to get up and running with Sunseeker and then ultimately, you bring it all back in-house? Or is this maybe the start of what I will refer to as maybe a bifurcated type model? And I guess, just as kind of a corollary, let’s see I go through an OTA and I book Sunseeker. How do I do the airline add-on? Do I have to then separately go through the Allegiant website? Or can I actually now — is it possible that I can buy the Allegiant airline piece by way of the OTA? Just curious how that.
Maurice Gallagher: You’re way ahead of us, Michael. We didn’t consciously think we’d be doing OTA going into this. But given just where we were and more importantly, what really kind of made me think that we could go do it is it’s just not a big component of the sales. We think of a normal hotel that just sells rooms and it’s 95% of their revenue. So that 20% off the top is a big number. But we’re — this is going to be, I’m guessing, 10% to 20% of our room revenue type of thing. We’ve got a cost and it’s just not a big, huge number that’s going to be meaningful. And to get to Scott’s — Dean’s point, we need to have some distribution in some of these bigger cities. So Micah is very experienced working with these people and he made the case and we thought it was a good idea.
