Daniel Politzer: Got it. And then I guess for my follow-up on TUI. Can you just talk a little bit more about the ramp there? I know that there’s a big European piece, and it sounds like things are moving along. But how should we think about that contribution ramping over the course of 2023 given that it was a big piece of that adjusted EBITDA in 2019?
Naftali Holtz: Yes. So they continue — we’re very happy with TUI, and their performance has been a very successful cruise brand. Their recovery is well underway. They have been positive operating cash flow and EBITDA for several quarters now. They’re very strong occupancy levels and pricing. So we continue — we expect this to continue to recover towards 2019 levels and beyond.
Jason Liberty: Yes. The only I would add is for TUI cruises, a — cruise is just similar to all of us. They still have some negative carry to burn off as well. And I think there are a few years from being at a place where they’re contributing at the same level to us as they were in ’19. But that’s — I think it’s a very short duration as they have been really effectively managing the business. They’ve really been outpacing, I think, just a broader cruise world and getting their business back up and running and profitable and generating positive cash flow. But like all of us, they have some negative carry they’re going to have to burn off.
Operator: Your next question will come from the line of Patrick Scholes with Truist Securities.
Patrick Scholes: First is actually just a modeling clarification question. On your percentage guidances to grow off of versus ’19 for the net yields and the various cruise costs, are those apples-to-apples based numbers? Basically the reported numbers that you had in — back in 2019, are those the numbers we should be growing off of? Or is there any adjustments in there that might make those percentages different than — okay, all apples-to-apples?
Naftali Holtz: No adjustments. Those are apples-to-apples and obviously, we gave you the color of all the moving pieces.
Patrick Scholes: Okay. And then a different question here. With the increase in direct business, do you see that disproportionately going to any types of destinations such as Caribbean or perhaps higher-end Alaska or Mediterranean any differentiation between those?
Jason Liberty: Well, clearly, on direct business, the shorter the product, the higher the percentage, and that’s just more because the consumer is comfortable and understands the complexity of — or the lack of complexity on the short product. The further typically, the consumer goes or the higher end that it goes typically requires, they’re more comfortable going to our travel partners. We have really tried hard to be just kind of a channel of choice. And of course, the consumer has become a little bit more digitally minded through COVID because they were buying a lot of stuff online as we all know. And as they now shift to experiences, they’re comfortable in different channels. And some of those digital platforms are through us and some of those digital platforms where our travel partners. But that’s typically how you would see it as the shorter and closer higher.
Patrick Scholes: No, that I understand. But as far as any changes since pre-COVID, have you seen a greater acceleration in sort of direct booking to higher end or perhaps a greater acceleration to…
Jason Liberty: It’s really across the board. On the consumer at all different levels have gotten more comfortable using digital commerce to make their purchases. And that’s kind of — that is whether you want to look at Royal or Celebrity or Silversea or TUI or Hapag, that’s what we have been consistently seeing.
Patrick Scholes: Thank you for the color. I am all set.
Jason Liberty: Okay. Operator, we have time for one more question.
