Brandt Montour: Okay. That’s helpful. And then a question on the new owner — all the new owner metrics you guys gave was really encouraging. And new owners are the toughest sales out there. So that’s great. I guess maybe putting — asking it from a different direction to put a finer point on it, when you look at your new owner close rates on a sort of a quarter-over-quarter basis. And obviously, we’re all looking to the consumer and looking for cracks to start showing, how is that sort of like-for-like new owner close rate evolved over the past one, two or three quarters, and yes, and into this year, that would be, I think maybe helpful for us.
Michael Brown: Yes. I’ve mentioned the three segments: owner, Blue Thread and new owner sort of open market. When you look at close rates on owners and Blue Thread, those have been pretty consistent over the last few quarters. Close rates on open market have come down slightly. I would put that as much to do with scale as I would the consumer, you grow your new owner tours 28%, and you’re going to more than likely lose a little bit of close rate just 28% is a lot to add in a quarter year-on-year. So right now, when I look at that slight decline, I put it more towards scale than I do consumer. But obviously, it’s a trend. I think every company is looking at their lower-end FICOs and wondering where that’s going to go for the next six months. We’re no different. We’ve got good portfolio, Mike, made comments about it. But close rates specifically, slightly down on the open market, and I’d put that to scale.
Operator: Our next question comes from Patrick Scholes with Truist Securities. Please proceed with your question.
Patrick Scholes: Thank you. Michael, another question. Can you give us a little bit more color or an update on progress in signing up companies for the B2B business. Have you seen any attrition from the initial sign-ups? And also any additional color on the B2C portion of the business. Thank you.
Michael Brown: Yes. Absolutely. It’s a very good question. In the fourth quarter, we made a few decisions. Number one was to align the cost more precisely with the revenue generation and the forward expectations. And number two is we wanted to go deeper with the existing relationships we have as opposed to signing up more. Why? It created a lot more internal work to continue to sign up more members with lower utilization. So our plan is to grow the existing ones to a point and more targeted ad new B2B relationships. So we have added a few, but where we’re getting our transaction growth on travel clubs, ex the bigger group that dropped out in Q1 of last year is by going deeper and getting greater conversion on the members that are already part of our ecosystem.
Sort of like everything else, it’s like recruiting is nurture what you have inside the house, make those the most effective before just going in recruiting more in this case B2B customers and that’s what we’re doing this year. And when you look at our Travel Club growth and transactions in 2024, which we’re projecting high-single-digits on transaction club growth this year. That is through the deeper conversion of clubs that we already have in-house. It’s not relying on us going and finding new clubs to be part of our system.
Mike Hug: And Patrick, the reason we’re confident in that high-single-digit growth is if you exclude the one customer we lost from the first quarter year-over-year comp, our transaction growth was actually 10%. So the investments we’ve made, as Mike said, to focus on the existing customers to drive more transactions are paying off. And once again, 10% year-over-year growth exclusive for that large customer was lost.
Operator: There are no further questions at this time. I would now like to turn the floor back over to Michael Brown for closing comments.
Michael Brown: Thank you, Maria. In closing, I would just like to reiterate that we’re off to a great start to the year with 15% tour growth, strong VPGs, and a 37% new owner mix. This performance not only drove a great result this quarter, but it also lays the foundation for continued growth in the future. I again want to thank the entire TNL team for all their hard work in getting us here, and we look forward to speaking to you all again on our next call in July. Thank you.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
