Conversely, cross-border travel outbound from China was approximately 70% in Q2. And so that — both those numbers will give you an indication of where the opportunities lie on a going-forward basis. And as we continue to do what we’re doing in terms of winning more portfolios, enriching our proposition, luring services such as our loyalty programs, that just helps us position us well on a going-forward basis. So that’s the kind of color I’d like to share with you on this. Broadly speaking, I think we’re in a very good place as it relates to cross-border.
Michael Miebach: Maybe one thing to add here that is the current imbalance in the market between demand and supply. So there’s still an unlock there as in airline capacity, airport capacity and all of that will unlock. So the combination of the underlying desire to travel, how that trend is coming through our position — strong position in the travel industry with our portfolios, Expedia and Lufthansa, just to add, too, here, and this unlock of capacity over time will be a very good mix. This is an exciting space. People just want to be out there.
Operator: We’ll go next to Dan Perlin at RBC.
Daniel Perlin: I just wanted to maybe dig a little deeper on the commentary around this moderation in inflation and spending, Sachin, that you called out. Particularly, what can you tell us about kind of the downdraft in average tickets during the current quarter? And then maybe more specifically, are you seeing any discernible signs or indications of trade-downs from the consumer that would be high corollaries to slightly weaker consumer spending as opposed to this resiliency that it sounds like you guys are continuing to talk about?
Sachin Mehra: Sure, Dan. So a couple of thoughts. I mean it’s no surprise. I think you guys are all seeing that inflation, while still remaining at high levels, has started to moderate, right? So you’re seeing that come through in terms of the nature of spend, right? We’re a nominal value business. And at the end of the day, right, inflation — declining inflation quarter-over-quarter will have an impact. So that was important to actually call out. And then I also talked about how there’s a moderation in select markets — international markets. The reality is when you look at markets — and this is not broad-based, right? There are select markets where — let’s take a market like the U.K. At the end of the day, rising interest rates and high inflation levels, ultimately, will put a squeeze on people’s ability to spend.
That doesn’t mean that the consumer isn’t necessarily resilient. The consumer remains resilient on a more holistic basis. But at the margin, right, what you start to see is as, say, for example, mortgages get reset, when mortgages get reset, they’re getting reset at high interest rates. What it’s doing is it’s squeezing the wallet — or share of wallet, which would be available for other discretionary categories of spend. So you’re going to see a little bit of that trend come through, which is what we were kind of calling out. But all of that is factored into our thinking as we think about the rest of the year and in my full year guidance. So that’s really, in essence, what we were kind of thinking about. So again, I’ll summarize it by saying there’s recent reductions in inflation.
There’s a little bit of moderation in select international markets. And really, we haven’t seen this as being broad-based. We haven’t seen this as something which is causing concerns for us. It’s very much in line with what we’ve been thinking about from a guidance standpoint. And I’ll remind you that at the end of the day, cross-border continues to be strong, back to the question which David just asked. So to kind of bring that all together, right, we feel good about what the strength of the consumer is.
