Brent Handler: No. We assume it’s going to be pretty close to flat is kind of what you’re seeing in this projection of negative 10% to negative 20%. Look, there’s a lot of the year left, and we feel like we have a really good plan and we’re focused on this path of profitability. We’ve made some optimization to our structuring in the company, focusing executives and making sure that our incentives as a company and our company goals are really driven around EBITDA and this path to profitability. So, I’m going to say that sort of our plan is it’s going to be about the same, but there’s a lot of upside there with Pass. But I also want to reiterate what I said earlier. Pass is $30,600 for the year. Pass is one great way for flexible travelers to consume our occupancy.
Another great way is for our existing members through loyalty and through rewards programs to just book an extra day or two or an extra trip. And so, we’re focused on all avenues of optimizing this portfolio. We worked really hard to build a moat that nobody in the world has. Nobody has managed and controlled portfolio of residences like Inspirato. Nobody can provide the service and certainty that we have. It really is different than a marketplace business. Marketplace businesses are amazing, and we’ve all seen how well Airbnb has been able to scale, but that’s a very different business. And for the high-net worth traveler that can’t afford a bad vacation, they can’t — they’re not willing to play vacation roulette. Inspirato is an awesome alternative and we happen to have excess capacity.
And so, using that excess capacity, whether it’s through Pass, whether it’s through Inspirato for Good, Inspirato for Business, whether it’s through loyalty programs, that’s the name of the game, getting our occupancy back up to even where it was last year, which still leaves us at least two or three occupancy points where we would say kind of where efficiency and kind of like the low 80%-s and we’re talking about running at 70%. So, lots and lots of great opportunities for us and our team to be able to fill up that capacity, Pass being one of them.
Operator: Thank you. Our next question comes from James Callahan of Piper Sandler. Your line is open.
James Callahan: Hi, thanks. This is Jim on for Tom. Thanks for taking the question. I guess first one I had for Brent is just on the macro. Can you dig in a little in terms of what you’re seeing by different customer cohorts? Are there customers that are being sort of more or less impacted by the macro? And then I had one for Brent, sort of just on some of the supply renegotiation or potential removal, how should we think about the financial impact there? Would this be like strictly gross margin? Or is there some OpEx that could see some benefit as well? Thank you.
Brent Handler: Great. Yes, this is Brent. I’ll take the first and I’ll have Web take the supply question. It is really an interesting year for all of us. Unprecedented in many ways in terms of what we’re dealing with around inflation and now we have this regional bank issue kind of coming off of COVID, which was a really unique. It was a really unique time for travel companies overall where we sort of all shut down and then we had such high revenge travel. But just kind of thinking about it from the macro, our affluent base still has a lot of opportunity to travel. I would say that Inspirato as well as our competitors in the luxury space that I would consider like a Four Seasons or (ph) or a Rosewood with their villa product, I would say all of us got out ahead of our skis on nightly rates.