Dom Bourgault: Thanks, Francis. And Jay, to your question on the RevPAR dynamics we’ve seen and how we forecasted that. So essentially, just to reiterate what Francis touched on in terms of the trends we’ve seen in Q2. Strengthening EEA across the board, but offset by weakness in North America, in particular, in alternative accommodation and also slower corporate bookings. So what we do in our RevPAR forecast is we integrate those latest [indiscernible] range around that. The range, of course, is meant to incorporate the – different volatility of the RevPAR in the market, even how dynamic it is and the range is constructed to give us over the room and absorb some of these movements. Yes, and again, just to reiterate, I think what you saw in Q2 is how we think about the rest of the year and try to incorporate that in the guidance.
Jake Hallac: Thanks so much.
Operator: Please standby for the next question. The next question comes from Jed Kelly with Oppenheimer. Your line is open.
Unidentified Analyst: Hi, guys. Thank you for taking our question. This is Josh calling for Jed. Just wondering if you could speak to about balancing occupancy in ADRs and talk about the progress around revenue management? And then I have a quick follow up.
Francis Davidson: Okay. I’m going to jump in, Francis here. Just I think what I understood here is the balance between occupancy and ADR. So the audio didn’t come in super clearly, but let me maybe just provide a quick commentary on how we think about occupancy and balancing that with ADR. So one thing to note is just how strong Sonder’s occupancy rate has been for the last several quarters. I think for 10 quarters in a row here we’ve outperformed industry peers. So we’re talking about low 80s occupancy rates. And it just speaks to the value proposition of the Sonder brand, right, which is to offer a really elevated accommodation, a really modern service experience, but doing so at a price point that’s reasonably affordable.
And so that translates into quite a lot of occupancy and an ADR, which was last quarter around $200. We have a lot of data internally. We’ve run many tests on elasticity to kind of figure out what is profit maximizing for us? And it’s clear that our customer demographic responds quite strongly to changes in price. And so this is a benefit in terms of our capacity to generate strong occupancy, but it also makes it a little bit harder for us to just increase ADRs while preserving that occupancy. So that partly motivates our strategy to invest more in B2B travel and our sales teams so that we can get less price sensitive customers to generate demand during weekdays in particular. So that’s generally how we think about occupancy and ADR, but we’re very happy with the strong occupancy results we’ve seen today.
Unidentified Analyst: Great. And then could you maybe talk about the progress around your revenue management?
Francis Davidson: Yes, so on revenue management, there’s a series of initiatives that our team has been working on. One of the very important metrics is the booking curve or the price trajectory, the so-called price trajectory. And so typically it’s preferable to increase price closer to the day of arrival because these customers tend to be more inelastic and so there can – you can yield stronger RevPAR by having lower prices initially and raising them. But those dynamics are very different depending on season, depending on markets. And so our data science team has been doing quite a lot of work to figure out what is the optimal booking trajectory by market, by season, by asset, by even room type to try and figure out how we can maximize yield.
