Joan Bottarini: Yes. And I would just add that about 30% of our business in 2019 was coming from international. So that being down 40% in the second quarter and the progression that you described Mark it was 60% in the first quarter. So there’s a significant upside there. And in the quarter our fees doubled over last year. So when you think about the runway with respect to that international inbound coming from flight capacities it’s a big tailwind for us going into the future.
Mark Hoplamazian: Yes. And the outlook for flight capacity is actually quite good. And there’s a lot of talk about like what the health of the consumer is. And what’s super interesting is that retail sales are up about 7% and foodservice sales restaurants and nightlife double-digit growth in the first half of 2023. The stuff that’s a little bit lagging is clothing apparel and durable goods. I would only add that one thing that we are keeping very close tabs on is the real estate the residential real estate activity which has seen a significant decline in activity over the last quarter. That matters in terms of how people think about their net worth. Having said that consistently all of the surveys that have been done and our engagement with our members tells us that in fact 68% of the respondents.
So they plan to splurge on themselves and travel and restaurants are at the top of the list and have consistently been at the top of the list over the last year. So we see a prioritization of travel and entertainment call that F&B and entertainment, despite the fact that there are some potential headwinds with respect to the residential real estate market in China.
Chad Beynon: Great. Thanks. And then a quick follow-up. Could you just remind us your mix of business transient between large corporates and SMEs?
Mark Hoplamazian: It’s a majority of large corporates. My guess is that it’s about a 60-40 split between large corporate and SME. Large corporate, I would say, it’s really a tale of many different dynamics. So if you look by segment, banking has been the one that’s been off the most and that had to do mostly with the shock of the bank failures in the first quarter that had a carryover. Not every single one of our bank clients is down. In fact our largest single bank and financial institution customer is up. But the overall sector is down, manufacturing is looking slightly better. Professional services, expecting continued significant travel volumes, so consultancy and the like. Same with professional — sorry, same with tech.
Actually tech is looking at increases. The layoff impact has moderated. So we think that’s behind us and the meeting planners and travel managers for tech are suggesting that they’re going to see an increase over the remainder of the year and pharma about flat. The only other thing I would note is that corporate — in terms of the mix of corporate and association on the group side, corporate in terms of our bookings is looking like 42% corporate and 32% association. This is full pattern bookings in the second quarter, which were a record — not quite a record but the second highest since the first quarter of 2019 at $500 million. So we’re still weighted towards corporate and we’re seeing sustained corporate demand on the group side. So really, really encouraged to see that and think that that’s going to persist in the foreseeable future.
Now, if you look into future years, about a third of the total full pattern bookings that were made in the second quarter, about 34% was in the year — for the year, 66% was into future years. Half of that 66% was into 2024 and then the remainder was into the plus two, plus three and plus four plus year periods. So what we’re seeing is and we still have some reasonable patterns left to book in 2023 second half, and although they’re dwindling and 2024 and that’s creating a lot of back pressure for associations. So we’re going to see — we predict that we will see an increase in the proportion of association bookings through the second half of this year, because they really need to secure their dates.
Chad Beynon: Thank you very much. Appreciate the color.
Operator: And comes from Stephen Grambling from Morgan Stanley. Please go ahead. Your line is open.
Stephen Grambling: Just wanted to stick with ALG a little bit. Specifically within the distribution and Destination Management business what is the sensitivity of this segment to things like revenue per departure versus departures. Should we see a pullback in leisure spending expand? And is there any impact from completing the integration of the broader ALG business with Hyatt that could also impact this segment?
