We’ll be quite strong and we’ll see bookings in through the winter in the southern climbs like Florida and Arizona. I would say that the West is picking up, and this factors into inbound travel, which is Asian inbound travel has been kind of the last of the three, meaning, European travel back strong, Latin American travel back strong. Asian travel was late, but we’re seeing more and more travel, particularly among Japanese and Korean tourists into the California markets and also into Hawaii. I would say an interesting twist is that we’re seeing Chinese tourists not in the United States by virtue of visa issues, but rather in our European markets, in places like Paris and elsewhere. And so, growing that. On the European side, we’re seeing certainly this summer a considerably elevated level of Americans that are traveling to Europe.
Obviously, the places that you know like the southern part of France into Spain and into Italy, the business has been really quite strong and strong and demand at a moment where we have made very material changes to our cost base in certain parts and certain countries of Europe, France in particular. And so, the margin throw-off of that business is quite enticing. And so, what we see in this is quite strong, but I would point out, we’re not done, meaning, we’re not yet back to where international inbound was. I think the airlines would tell you that they would redeploy capacity as in if they had it to feed that. We would like that because this international inbound business going both ways is very attractive to us. It carries very high rate, very high pickup in VAS, very attractive margins.
And so, we’d like to see and expect to see that continue.
Christopher Stathoulopoulos: Great color. Thank you. A follow-up. So, in your prepared remarks, you touched on what is your view of or how you approach fleet management and what is certainly, I would say, a different approach today. If you could expand on that a little bit more. That’s just about how every conversation with investors for me at least starts off is how has fleet management changed for Hertz? How does Stephen think about managing the fleet through a cycle today versus how it used to be done. Okay. Thank you.
Stephen Scherr: Sure. Thanks a lot. Look, the core of the strategy, as we’ve said on all the calls in which I’ve been a participant, is that ROA drives this, okay? And we’re targeting a marginal ROA on fleet at 15% to 20% in terms of what the ROA ought to be on the cars that we hold. We’re dynamic all the time, okay, which is why depreciation and fleet size could move and will move depending on where demand is, but you’re always looking to optimize your return. By the way, that may be as it was in various portions of last year, selling the car over renting the car. But as prices have come off, the rental proposition has obviously become more attractive at a very stable base rate that we are at. So, yes, it is down year-over-year, but I think it’s explainable in the context of where we’re coming from and now sitting sequentially at what we view to be a relatively stable rate environment that sustains adequate and attractive marginal returns on our assets.
If you think about fleet, okay, and you think about utilization and fleet being the key component of what drives utilization, not taking price down to beef up against a static fleet number, we started we started off the year at kind of 475,000 to 500,000 cars. We surged into the summer, challenging ourselves to ensure that what we were getting at appropriate levels of utilization was adequate return. And as Alex pointed out, we will be back down to something that’s slightly higher than where we began the year, again, in the context of being mindful of where demand sits, maintaining better than 82% utilization on the fleet, maintaining high ROA on the cars, and all the while serving a diverse set of customers that have different RPD, but very attractive expressions of margin.
