Laura Champine: Understood, that’s helpful. I don’t want to read too much into a small thing, but your products segment did grow a little bit faster than services. Is there anything going on from a product innovation or a promotion perspective that’s helping drive that line?
Leonard Fluxman: So, Laura, as I mentioned before, I mean, the simplification of our menu skews towards services and the choice of those services tend to result in a higher sell-through of product, generally across space and body. I think with some of the new cryotherapy, body services, spatial LED, et cetera, we’re starting to see those results come through. And there is a very heightened focus on getting retail attachments improved over 2023. Even with the increased pricing in services, we saw some catch-up there. And so, we continue to have and prioritize sell-through as a big focus of what we’re doing at the same time as ensuring that we are providing the guest with a very luxurious and good service overall.
Laura Champine: Understood. Thank you.
Leonard Fluxman: Yes, thank you.
Operator: Another question comes from Gregory Miller from Truist Securities. Gregory, please proceed.
Gregory Miller: Thank you. Good morning. I thought to ask about the new banner announcement and your expectations with Aroya in terms of the wellness spend from the guests that I presume are largely from the Gulf region of the world, any behavior of the kind of wellness spend habits that they may have on that ship? Thanks.
Leonard Fluxman: Yes, Greg. I think it’s still early to tell how this plays out. I mean, it’s a new cruise line. It’s a new part of the world for us to operate in. Lilly has operational and it’s on logistical challenges because of culture, et cetera. But we are positioned to do everything that we have discussed with the operators, and we’ll see. I mean, this is new territory. It’s a new geography, a new demographic that’s focusing extensively in the Gulf as you say. But I think we’ll start to see how to adapt to that model. I mean, it’s not like we haven’t done work in the region before on land. So I think we’re going to be fine. And I think the cruise line hopefully will be successful.
Gregory Miller: And then as a follow-up, Norwegian, as you know, put out some new ship orders. And over time, some of these shifts will be larger in terms of passenger capacity. I’m curious in an early stage, do you have any sense of the implications for you all in terms of potentially the size of your wellness facility on the new vessels, increase in staff, potential changes to the thermal suite, if there’s anything that you could share at this time that would be interesting to hear.
Leonard Fluxman: Whenever there are large vessels announced like the ones they have, we’re first in line to ask for more space, particularly in the Medispa area, more staff. Obviously, those are always at a premium because everybody else wants to do the same thing that’s offering some amenity or service on board. So yeah, we talk to them as early as we can and try and switch it up where needed. And to the extent that we can increase the offering and footprint in Medispa wellness, we’ll continue to push very hard on those new ships with bigger passenger accounts. But having said that, I mean, NCL’s spas are beautiful. They’re cutting edge. And I would imagine part of our discussions and negotiations with them on layouts should be positive towards getting us what we need with the Medispa offering.
Gregory Miller: I agree having seen some of these ships in person. Thanks very much.
Leonard Fluxman: You’re welcome.
Operator: And our next question comes from Assia Georgieva from Infinity Research. Assia, please go ahead.
Assia Georgieva: Leonard and Stephen, congratulations on a great quarter and a great outlook for the rest of the year. Again, March 19, thankfully it’s over. So just looking at both from an operational point of view, obviously, things are going very well. And we are going to be — well, we are seeing growing occupancies. We’re not still quite at 2019 levels across all banners. So that to me seems an opportunity. Pre-bookings growing and especially, as you mentioned, on Norwegian, you’re not quite yet on all ships. So Q3 would provide another opportunity with a great wave season. So the third point, I guess I’m trying to make. We have higher-quality passengers yet one slight offset might be the fact that for one of the banners late Q3 and into Q4, ticket pricing is coming down, therefore, quality of passenger may be coming down.
How would you balance this on the operational part? And secondly, in terms of equity structure balance sheet buybacks and the potential dividend, you’re in better shape seems to me than you have been in the last five years. So, really glad that the Board authorized the $50 million opportunistic buyback. And today might not be the date for an opportunistic buyback given how well the stock has reacted. Is the $50 million kind of time limited? Or is this again up to your discretion in terms of what the markets are doing? Thank you.
Leonard Fluxman: I’m going to answer the first part. Stephen can answer the second part for you, Assia. But certainly, load factors continue to improve across all the banners. Some may not be quite full in 2019, but overall, load factors are much improved versus the first quarter of 2023. And obviously, we started according to that improvement. So, I’m not too worried about that. And to the extent that some ticket pricing looks a little weaker in the third quarter, the quality of passenger who’s buying that cheaper ticket is not necessarily the same passenger coming into the spa. So, I’m not really concerned. And to the extent that we do need to modify anything, which I’m not sure we need to as long as we continue to penetrate around about that 11%, 11.5% of the best passengers, which we target, it should not materially impact us if anything at all. I’ll turn the next question over to Stephen.
Stephen Lazarus: Yes. Thanks, Leonard. Assia, the short answer to your question is no, there is no time limit in terms of when we can utilize that authorization. So again, it will be opportunistic and we will buy on weakness.
Assia Georgieva: Again, today, it doesn’t seem to be the date to do so.
Stephen Lazarus: Probably, not today. Exactly. Question
Assia Georgieva: But I’m very glad to see the lack of opportunity today. So, great job. One last question and I’m not sure that you can answer this in such a public forum. The RCL renewal, would that generally be within standard term, meaning five years or so?
