David Bernstein : The only thing I want to add is that there are a lot of different efforts — efficiency efforts going on all around the company. We did build all of that into our cost guidance. Remember, the cost numbers, as Josh pointed out, are over a four-year period. This is in comparison to 2019. So there has been a lot of inflation during that four years. But we have built a lot of efficiencies as well.
Josh Weinstein : Yes. And taking a step back from advertising, but just the concept of how are we looking at our business overall we’ve tried to stress throughout. We’re starting with an industry-leading cost structure, and we certainly want to maintain that. We’re always looking from an operational standpoint, how can we do better? How can we improve? And we’re doing things like benchmarking, the same class of ships across multiple brands. We’re looking at ways to further leverage our spend through our global sourcing initiatives. That’s ongoing, and that will continue, some of which the benefit we know we’re seeing already. Some of which will factor in as we make our way through 2023 and really start benefiting in 2024.
Chris Stathoulopoulos : Okay. And to follow up, a little bit of a tougher or more direct question, if you will. So your capacity guide is up about 1.5 points from December. The cost guide is up and there’s some confusion around here around your brand and cabin mix, if you will. And I think part of the reason, if we look at January into mid-February around some of the enthusiasm around the stock was at that time, that 3% or kind of sort of a typical capacity guide for Carnival and believe that, that would help sort of accelerate your unit margin recovery. So what would you say in response? And this is a question I’ve gone today that sort of Carnival — liquidity, I would say, for the first half, at least risk here is off the table.
But what would you say in response to that with the guidance update today that Carnival is not going to revert back to its sort of old playbook, if you will? And then what I mean by that is really just some of the numbers here where we have the 4.5 or mid-single-digit capacity growth and the higher cost guide and then concern around the pricing integrity here?
Josh Weinstein : Sure. So just to be clear, the only difference in our capacity from what we were saying last quarter until now is because of the strength in demand that we’re seeing for the cost of brand because of what we’ve been doing. We have the opportunity to introduce a ship earlier than we expected, which is going to actually help liquidity because it’s going to drive EBITDA. So we feel very, very good about that decision. We actually have a track record of doing real well on the cost side. So I think if we can maintain that type of discipline, then we’ll be well served. Everything else that we talked about in the last quarter still holds. We’re more enthusiastic now given the fact that we just had record breaking wave, brands are more set in their plans, and we’re pushing forward.
David Bernstein : And I would like to add on the cost. The majority of the increase was associated with higher occupancy. And remember, we put together our forecast back last November. We give — we have our earnings call in December, very early in the month. And so that was a forecast that we had put together prior to Black Friday, Cyber Monday and all of the record bookings that we saw throughout December, January and February. So when you’ve got extra occupancy on board the ship, your costs are going to go up on a unit basis a little bit because remember, the ALBDs don’t change or the denominator doesn’t change. So it’s all very good news, driving adjusted EBITDA higher, driving liquidity — improved liquidity. And so we are far more confident than we — today than we were back in December, as Josh indicated before.
Josh Weinstein : I think this has to be the last question. Operator?
Operator: Yes, sir.
David Bernstein : One more question.
Operator: We’ll take one more. The last question from the line of Paul Golding with Macquarie Capital.
