You’ll recall that about $50 million of OpEx efficiencies that we’ve generated, which will really help us in 2024 positioning Inspirato as a whole for not only returning to growth, but to really to return to profitable and sustainable growth. And we expect that dynamic to really start to switch towards the end of this year going into next year, and we do believe that there’s a lot of platforms for growth in 2025 and beyond that can be really successful for Inspirato. Partnerships have been very healthy for us. Capital One is a great source of mid-to-long-term growth. And there’s a lot of things that we do more broadly speaking with respect to managing high-end residential inventory to delivering pretty amazing premium experiences for our members that make us confident that once we get the fundamentals right, there’s a long runway of growth ahead of us in 2025 and beyond.
Brett Knoblauch: Thank you. There is a modeling question on gross margin and if you could tie it into controlled accommodations, which were down quite significantly assuming a lot of leases, finally wrote off. I guess, where do you see that trending for the rest of the year on controlled accommodations end likely? And I guess similarly, could you talk about where should we expect gross margin to go from here as well?
Robert Kaiden: Yeah, thanks for the question. It’s Robert again. So, yes, we’re really happy. We’ve been talking about our gross margin pickup with a reduction of controlled accommodations for many quarters now. And as we’ve said in the past, it was going to take some time with terminations between 180 and 365 days generally. And so, we’re happy with the 40% we got to this quarter. We will continue to see a slight decline in the rest of the year kind of quarter-over-quarter in the overall controlled accommodation’s numbers. And that’s again because they were rolling off between 180 and 365 days and we started this back in the May and June time frame. So we’ve had some of the long ones that are starting to roll off now. Some of the shorter ones that have also rolled off.
But we’ve got a few more to go. So, there’ll be a little bit of improvement, but this was really the big quarter for us. And then in terms of gross margin, as you know, gross margin is really impacted by – with a fairly now fixed cost in terms of the cost of revenue line, with the leases, the biggest impact is going to be around the revenue. And as we’ve talked about before, we have seasonality in our revenue. Q2 is historically low point, low quarter of the year from a revenue perspective. And so, we would expect to see lower gross margins in Q2. And then we have some improved seasonality rolling into Q3 and we’ll see margins start to pick up there as well. And then longer term, we hope to keep continuing to be able to drive in 2025 our margins as we start to pick up on our revenue, as well and optimize really the portfolio that we have we will be able to continue to improve our margins.
Brett Knoblauch: Awesome. And then, maybe just one last question for me. Just on Capital One. Can you just give us an update on where we are in that process? Have those members been able to access the inventory yet? And if not, when will they be able to? And maybe can you just talk about if that’s embedded in your guidance for the year at all?
Eric Grosse: Hi, this is Eric. And yeah, we’re pretty excited about Capital One. I think we’ve been consistent about that level of enthusiasm over the last couple of quarters. And they’ve been a terrific partner for us. And what’s happening right now, literally as we speak, is our teams are continuing to work on technical integration, and we’re on track to sort of kick things often to make Inspirato inventory available in the back half of this year. And that’s consistent with the guidance that we’ve given. And we expect relatively modest volumes as we sort of test and ramp up the relationship in 2024. But we do hope and expect that it can be a very, very big demand driver for us in 2025 and beyond. But it will start, to be clear, we do expect it to begin in the back half of this year.
Brett Knoblauch: And of the inventory that will go in that platform. Sorry, just one more.
Eric Grosse: Yes, sure.
Brett Knoblauch: Is that the inventory maybe approaching – or those dates approaching that has been booked yet. That will be going on there, so it will be more for shorter term bookings? Or is it going to be more skewed to residence or hotels?
Eric Grosse: Yeah, it’s really going to be a residence-based and we have fences of designed into the product itself to ensure that we’re not creating any new challenges for – or the experiences of our existing members. And so, we really view this as a great way to give folks that aren’t Inspirato member’s, tasted the Inspirato travel experience, which really is differentiated when people experience the Inspirato travel for the first time. So, we’re doing that in a way that I think is very responsible with respect to what we’re doing to optimize our overall portfolio from a residence occupancy standpoint and at the same time, making sure that our members are getting a great experience.
Brett Knoblauch: Got it. Thank you guys so much. I appreciate it.
Eric Grosse: Thanks. We appreciate the questions, Brett.
Operator: Thank you. One moment for our next question. And that will come from the line of Mike Grondahl, with Northland Securities. Your line is open.
Logan Hennen: Hi, this is Logan on for Mike. First off, congrats on the quarter. Could you guys provide some additional commentary about your top two priorities for the rest of the year? And how you’re feeling going forward? Thank you.
Eric Grosse: I’m sorry. I just didn’t hear the question. Can you just, Logan, do you mind repeating it?
