But really, we’ve been growing across many vectors. We’ve talked in the past about our optimized distribution product that we used to help hoteliers with their wholesale businesses. That’s been growing very well. We’ve invested in our travel agent product, which has driven a lot of growth. And we’ve expanded, as I said, the breadth of our partnerships, the number of our partnerships. We continue to power a lot of the biggest supply partners, like airlines and others. So we continue to grow kind of in every dimension, sort of more partners, more depth with each partner, and new products coming all the time. So that continues to be an exciting area for us. And as we innovate faster with technology, with AI and other capabilities, those underlying capabilities become more and more valuable to our partners.
Operator: Our next question comes from Lee Horowitz with Deutsche Bank.
Lee Horowitz: Just thinking about the investment plans for 2023 and how that impacts margins. So on the one hand, you obviously have investments in One Key, driving some incremental marketing investments. What are the areas that you see potentially offset some of those incremental investments from perhaps fixed cost growth, maybe underlying marketing efficiency via bringing that function under a unified stack? Or perhaps other areas of cost efficiency that you see across the P&L?
Peter Kern: We will be investing somewhat more in the loyalty program, but we expect, as we’ve talked about many times, we think about our investment in acquiring and retaining customers as everything from loyalty to discounting to direct marketing spend and performance brand, et cetera. And we expect to balance those things. So we don’t expect the all up cost of that, if you will, to be expanding over the course of the year. It might shift between buckets. And we believe we can underwrite that with the total spend we already have. So there may be some noise. And when we get there, we’ll explain it to you in terms of how the loyalty program will roll out. But we expect to absorb that all in all those line items, just trading them off, one against another.
Lee Horowitz: One follow-up, if I could. Obviously, you’re seeing really strong underlying demand for the industry with growth into January that looks really healthy. Obviously, this is maybe somewhat counterintuitive, given the state of the consumer savings rates and inflation. To what do you owe sort of this strong underlying demand for the overall travel industry, given the macro backdrop?
Peter Kern: I think you’ve heard talk about it for a while, and maybe it was hopeful. But we continue to see that people are prioritizing travel over just about everything. If any of you have been traveling, I’m sure you’ve seen it. Rates are still very high. Demand is high. Planes are full. So I think maybe it’s still the effect of COVID and people realizing there’s more valuable things to do with their lives. And it’s not just like revenge travel, but it’s beyond that. Like, I want to keep traveling, I want to keep enriching my life. But I think we’re seeing high demand. We obviously think we’re doing a good job of capturing that demand, relatively speaking, but the markets are strong. We still haven’t seen really Asia come back fully.
I’m sure we’ll see pockets. We’re all worried about it. But so far, demand continues to be quite robust. And we’re really pleased with how 2023 is starting. So, with any luck, there’ll be soft landings all over the world. And Asia will come back and the industry will remain robust through this year.
Operator: The next question comes from Kevin Kopelman with Cowen.
