Steve Wieczynski: Okay, great. Thanks, guys. Appreciate it.
Operator: Thank you. The next question is from Eric Wold with B. Riley Securities. Your line is open.
Eric Wold: Thank you. Good morning. Two questions from me. I guess, the first one, I know that you reaffirmed the prior guidance range and it’s only been a couple of months since the Q4 call when you first gave that. But was there anything with the costs, you saw in Q1 and maybe so far in April Q2 that were not fully anticipated, when you gave that guidance that would kind of need to see some reliefs to maybe give you more comfort in the higher end of that range than the lower end?
Craig Felenstein: Nothing significant. I mean, the biggest one is obviously fuel. The prices have continued to rise, and that has created a bit of a headwind for us, and that will continue to be the case. And then, certainly, when we look at, you know, some of the voyage cancellations that we’ve had, the impact of not only those voyage cancellations, but also some of the, what I would say, is residual softness related to some of the instability around the world would have us, you know, as a bit of a headwind on some of our guidance here. But we gave a range when we gave the range back in, you know, end of the first or end of fourth quarter, and we still feel comfortable that we’ll be within that range here moving forward. The biggest variables will certainly be the continued revenue generation.
As I said on my remarks, we’re 94% of the way sold out with regards to our revenue expectations for the year at the Lindblad segment. But that last 6% does come at a very high margin, right. So it’s imperative on us to fill the rest of the 6%. And if we do that, we should be able to get, where we want to be from a full year perspective.
Eric Wold: Got it. And then second question, I kind of I honestly understand the decision to add a highly variable cost land-based business is different than, the decision to add a new ship to the fleet. But, you know, maybe update us on kind of where you are on the decision curve to add to the fleet and kind of, what you really need to see to make that that commitment whether it’s, you know, a used ship available out there with some of these competitors that that may be struggling or committing to a kind of a multiyear build process?
Sven-Olof Lindblad: Yeah. First about the land company. So just one of the things that was particularly attractive about this most recent acquisition, was that this is a this is a company that’s been in existence for 40 years and in a country which is probably the wealthiest country from the perspective of wildlife in all of Africa. And, you know, to get a footing in a country like Tanzania with somebody, that has had that wealth of experience is really, really a meaningful opportunity and has tremendous opportunity, to be developed further. So, you know, for us so far, the whole concept of land businesses, has been a sort of a counterbalance, if you will. You know, with ships here, that’s a year, it’s largely fixed costs. Certain things happen like COVID And, you know, the dynamics of that are different or the effect of that is different on ships than it is on land company.
But we are absolutely keen on growing our maritime business. Now there are a couple of triggers that we need to — there are a couple of things that we need to see before we trigger new opportunities. And one of them, by the way, is there’s an interesting question about building ships or acquiring ships. The business was largely built on acquiring ships and then in recent years on building ships. Our thesis is that there probably will be ship available in the in the future, that were built and perhaps don’t have, that that that weren’t as successful as the people who built from Hope they’d be. Maybe a polite way of putting it. And so we we’re really, really keeping our eyes out on companies that have ships that may become them. That’s number one.
And this what we wanna make sure of is that we are doing as good a job as we did prior to the pandemic in filling the shifts that we have because the value of that is off the charts by comparison to any other form of investment. So, you know, making up to 10% differential, let’s say, see where we are now and where we would like to be 10, 12% is just massively valuable. And, you don’t wanna add inventory and spread out your reach because you’re adding your costs and you’re just spreading out your reach. That really isn’t a smart thing to do. So we have to feel that we’re at the stage where — I mean my goal is just to have to feel that you can get a 125% of the occupancy that you have. And the minute you envision you’re headed in that direction, you can begin to trigger new acquisitions.
Eric Wold: Got it. Thank you both.
Operator: Thank you. The next question is from Chris Woronka with D. B. Your line is open.
Chris Woronka: Hey, good morning, guys. And Craig, congrats on the new opportunity. All the best at the new place, and we’ll miss you. Can we can we maybe talk a little bit about the, you know, the comments you made earlier about the competitive environment? I guess the question would be, is the level of surprise greater on kind of the level of competition that’s out there and then some of the new entrants? Or is it more about how they’re handling their pricing strategies? Thanks.
