Unidentified Analyst: Got it. Thank you. And also a follow-up. So you have loyalty members now that 17 million, so up a few million Q-over-Q. Are you able to quantify any sort of benefit you’re seeing from these numbers related to EBITDA?
Damian Scokin: We obviously monitor and manage that benefit from all the different impact that the loyalty program of that [site cost] (ph) from acquisition cost, to increase repeat rates and things like that. But we will not disclose those at the moment.
Operator: Okay. We will transition to the webcast questions. The first is from [Bruno Goldstein] (ph) asking, can you please give us more detail on the decrease of the current contingent liabilities on the second quarter?
Luca Pfeifer: Absolutely, Bruno, thanks for your question. This is Luca Pfeifer speaking. Just to put it into perspective, the contingent liabilities essentially have increased due to the increase in provisions of legal claims in the Brazilian market. That has been the major impact on that specific line item. And there is a small remainder that has also been affected by FX variations, but it’s marginal. The biggest impact comes from the adjustments to claims.
Operator: And our next webcast question is from [Alejandra Aranda] (ph) asking, what should we expect for 2H considering the latest currency softness seen?
Damian Scokin: Hi, Alejandra. How are you? Thanks very much for your questions. As we stated in our earnings release, Argentina currently represents slightly less than 15% of our bookings. We are exposed on the revenue side and on the cost side. The revenue side is of that 15%, mostly on the domestic to this market, which is 6% of our bookings is even less than the total exposure to Argentina. And given our cost base that is denominated in peso, we have a natural hedge in between the revenue stream and the cost base. So the impact on the P&L of any type of Argentina devaluation is close to zero. On the other hand, and in terms of the balance sheet, we split our strategy in two. We — as we mentioned in several occasions before, we actively hedged our working capital and current balance exposure.
So again, no impact whatsoever there. And we explicitly do not hedge our long-term assets and liabilities. So, if there’s a relevant — the devaluation in Argentina, you will see non-cash, again, non-cash accounting impact from the long-term assets that we have in Argentina. Those are for your reference. Those are mainly tax credits that we have with the Argentina authority that are reflected in obviously Argentine pesos. So, those tax credits will be worth less dollars. But again, it’s non-cash impact.
Operator: Thank you. And we have a follow-up from Alejandra. What should we expect in terms of marketing costs for 2H ’23? And also, could you expand a bit more on recovery trends of domestic versus international travel?
Damian Scokin: Yes. I will start with the second part, Ale. As I said, we’ve seen in Q2 and accelerating in Q3, a recovery trend towards pre-pandemic levels. But the interesting thing is that when you look at the domestic travel market, it’s fully recovered slightly above pre-pandemic levels in passenger terms. When you look at the international, the international market is still below the pre-pandemic level. So there’s still room for further growth and recovery on the international market. As per your question regarding marketing costs, we expect to continue investing heavily in marketing, but gaining the efficiencies we committed to in the Investor Day. There’s a clarification to make here, which when you look at selling and marketing, not marketing standalone, in selling, some of our channels the ones we’re investing in, for example, B2B generate additional costs that go into selling and marketing, that was the commissions, for example, of B2B.
So that’s a clarification on how to take into account. The pure marketing, it will be in line with our investor days and will reflect economies and scale and efficiency. We may spending — be spending a little bit more on the sales side of it, given the growth of the B2B and some offline growth that, again, will be positive in terms of contribution, but the growth will be reflected there, too.
Operator: Thank you. Our next webcast question is from [Santi Geraton] (ph). Can you please talk about your plan to grow in countries like Colombia, Peru, Panama and Costa Rica? What’s your perception of the profit pool potential in these geographies?
Damian Scokin: We have obviously an aggressive growth plans that are country-by-country specific. The ones you mentioned, Colombia is particularly relevant to us, even the third to fourth country in terms of size, and we believe there’s a significant opportunity there. In Peru, again, we have a very strong position, opportunities to grow there, but not as big a market as Colombia, for example. Costa Rica, less so, I would say. As we mentioned on several occasions before, Latin America is a very different mosaic of markets that are very peculiar and our priority markets are Brazil and Mexico in the first tier, and the second tier is Colombia, Chile and Argentina.
