Robin Farley: Okay. That’s helpful. Thanks. And just if I have a follow-up, if I can. Just circling back to the expense question. Just looking at your exit rate in Q4 expenses being up about 19% versus 2019 levels. And I think your fleet mix is pretty similar to 2019. Are there sort of big expense increases relative to 2019 that are still kind of holding on there? And is there any opportunity to get rid of any of those costs that driving that 19% increase like that would bring the base down outside of sort of normal inflation there? It seems like there may still be some unusual things in that 19% increase. Thanks.
Mark Kempa: Hi. Good morning, Rob. When you look at 2019, Q4 versus 2019, the 2019 for a myriad of the different reasons was a bit lower than our usual run rate even when you look at all the quarters in 2019. Yes, this is a seasonal business. But generally speaking, our costs are not really exposed to seasonal issues. There was just a lot of noise going on in 2019. I think the more important metric to look at is if you look at the run rate and the consistency over the course of 2023 versus 2022, we continue to move downward. And your comment about the fleet mix, I would like to clarify that a bit because I think when we look where we are today, we absolutely have a higher mix of luxury and ultra luxury product from Oceania and Regent that we didn’t have back in 2019. So that is playing a part, but I would not focus so much on the absolute number in 4Q 2019, because I think it just was not a representative run rate going forward.
Robin Farley: Okay. Thanks a lot. I’m at the fleet next time on a full year basis. But, yeah, Q4 certainly, yeah higher luxury. Okay. Thank you. Thanks very much.
Mark Kempa: Thanks.
Operator: [Operator Instructions] The next question comes from the line of Brandt Montour with Barclays. Please proceed.
Brandt Montour: Hey, good morning, everybody. Thanks for taking my questions. So I just want to follow-up on Robin’s first question and talk about those 4Q close-in hiccups that you mentioned. And I want to differentiate between Turkey, which could be construed as indirect impact from what’s going on in Israel and that of what’s going on in Asia, which sounds like it’s more specific to the strategy, the longer-term strategy of moving things to more exotic and — longer-dated itinerary. So I guess, on that latter stuff, that seems like something that was put in place a while back that we’ve been talking about for many quarters now. And so I guess the question is, is that something that was 4Q specific based on the destinations and won’t roll into the 1Q? Or could there be sort of some leakage into next year on that situation? Thanks.
Harry Sommer: So I think the 4Q situation and — first, let me start off by saying good morning, Brandt. The 4Q situation was really limited to Q4 and related to the fact that we didn’t quite get the booking curve right. I mean ,we do lots of things right. We didn’t get this one quite right. But when I look at Q4 of next year and comparing it to Q4 this year, we are significantly booked ahead for Q4 of next year, both for Asia itinerary specifically and in general, across the fleet. And that gives us confidence that this short-term dislocation, as Mark mentioned, has been solved for next year. I’m not as concerned about Q1, because if you remember, our Q1 comp will now be back against 2023. And in 2023, we had all types of issues in Q1 in Asia because of COVID restrictions and the like. So that is one of the meaningful tailwinds going into next year.
Brandt Montour: Okay. That’s helpful. Sorry, everyone else got two questions, so I’m going to take a shot here. The hedge book at 36% — I mean, the hedge book at 36% is a little — still a bit below where you would have been. I think at this time in 2019 for 2020, we’re at something like 55% or 56%. So, I guess, just update us on the strategy as the way you see it for fuel heading into next year.
Mark Kempa: Yes, Brent, there is no change in the strategy. Yes, when you look at 2024, we are 36% hedged. And like we’ve always said, our goal is we’d like to be about 50% hedged going into a year. And we are just very opportunistic on that front. So, when there’s dips in the marketplace, we take advantage of that. There was a little bit of a dip yesterday, and we took advantage of some position. So, no fundamental change in strategy just really timing of the market and when we feel there’s a good opportunity to place some additional positions on the books.
Brandt Montour: Makes sense. Thanks everyone.
Operator: And the next question comes from the line of James Hardiman with Citi. Please proceed.
James Hardiman: Hey good morning. Thanks for taking my question. So, I just want to make sure I understand how you guys are thinking about the impact from the Middle East beyond the closing impact for the fourth quarter. I guess, A, as you talk about removing Israel from the itineraries in 2024, obviously, you’re replacing that with something. Do you think that’s impacted your outlook in any meaningful way for 2024? And then you talked about 4% of your visits being to the Middle East next year. How do we think about how that business is impacted? I think you said, Harry, that you’re hopeful and obviously, it’s difficult right now, obviously. And our hearts go out to all the people that are affected in the region but that you’re hopeful that this will be a short-term event or a reasonably short-term event.
Is that with regards to, hopefully, the conflict itself is short-lived and then your business can go back to normal or even in sort of a state of elevated tensions in the region just based on history bookings beyond that epicenter ultimately return to normal. Just want to make sure I understand how to compartmentalize all of that?
Harry Sommer: So, James, let me try to deconstruct because you sort of touched upon a couple of points. I’ll start out by saying that this 4% that we talk about for next year is mostly skewed to Q4. So, it’s 1% of our capacity in Q1, 1% Q3, 3% in Q2, and 10% in Q4. And because it is skewed so far in the future, we’re optimistic that the alternative itineraries that we’re going to put in place that would go to other places instead of Israel have a reasonable time to book at normal levels. And just — there was sort of a half push in their US assets if it’s correct to assume that any time we remove this role, we’ll replace it with something else. The answer to that question is yes. We are not planning to fully cancel or lay out any of our ships because of this disruption.
I think when we think about this a little bit longer term, I think it will be a while before people are comfortable going back to Israel which is why we are canceling all Israel calls in 2024, even if the complex was and we hope it does, a reasonably short amount of time, we are more bullish about the ability to return to places like Egypt and other places in the Middle East. And quite frankly, we don’t go to that many places in the Middle East, as part of our – our normal cruise, that it’s just normally part of our transitions when ships come and leave Europe at the beginning and end of each season. So that being said, while obviously, it’s a little early to tell, and this is somewhat dependent on how long the conflict goes, we’re relatively optimistic that the scope and nature of this will not in any way meaningfully impact our 2024 targets.
James Hardiman: Got it. That makes a lot of sense. Obviously, its difficult but that’s really good color. Thank you.
Operator: And the next question comes from the line of Conor Cunningham with Melius Research. Please proceed.
