David Barry: Thanks Alex. That’s a great question. With China, I think you always have to consider Asia in its entirety. So, while the Chinese market has not fully recovered and is beginning to travel, there is a few really interesting things that are happening. So, airlift, as an example, out of Japan into North America, so both Canada and the U.S. Canada specifically is about 111% greater than what it was pre-pandemic, which is quite interesting when you look at lift from Tokyo. And then if you think about Asian travel, WestJet, which is the Canadian version of Southwest has launched direct flights from Vancouver to Seoul. And so those flights have been added. And then Air Canada is increasing flights to Hong Kong, larger aircraft to Shanghai.
They have extended seasonal service to Bangkok and they launched new direct routes from Vancouver to Singapore. So, the airlift out of Asia, excluding China for a second, the airlift out of Asia is increasing, which is driving visitation and growth from those particular markets. What’s quite interesting is China recovering and it is happening more slowly, but that’s giving room and inventory to other countries that are taking on that inventory. So, specifically Korea, specifically some growth coming out of India and then strong growth coming out of Japan. As China does return, what’s interesting is that will drive compression and then in turn driving yield because we set aside a finite number of rooms that we allocate into the group market.
So, attractions are performing well. We have got the Icefield’s returning to its levels, and that’s taking a little bit longer than we would have hoped, given its history and dependence on Chinese tourism travel. But the other channels coming out of Asia are performing well. One interesting fact is China has worked hard to eliminate these requirements. And one of the growing segments now, the third biggest segment going into Iceland, is actually Chinese travel. So, quite interesting to see that growth accelerate. And so I expect that things will normalize. This year, we have, I think really good demand from our various tour and travel partners. Team has done a good job of reallocating inventory where China perhaps might be a little bit behind allocating more space to other tour and travel partners.
On a forward look for ‘25 because we are actively contracted for ‘25, our demand from Asian partners increasing, and that’s happening also now as we are in the contracting process for ‘26 because we operate two seasons generally ahead in those categories. So, not a complete return from China, but definitely growing and then strong performance from across Asia, so things are looking positive for the summer.
Alex Fuhrman: Great. That’s really helpful. Appreciate that data. And then you mentioned the Columbia Icefield. I am curious that the groups that are coming from elsewhere in Asia are showing the same proclivity to do the Icefield Adventure and the Skywalk and stay at the Glacier new lodge. I believe those properties really catered a lot more to that Chinese market, or are you seeing the productivity of those assets start to recover alongside the rest of your assets?
David Barry: We are. And I think that it’s also something to remember that the Chinese group travel primarily was very, very early season and later on in the season. So, there is still white space to fill there. So, we are working to fill that. If you recall, last year we talked a lot about the Pursuit path, and you were able to see a little bit of those different attractions when you visit it. The Pursuit path is tracking quite well. We are double digits ahead of where we were at this time last year. So, that’s encouraging because that bolsters all of the attractions through the Banff Jasper Collection. And so we are pleased with that. And that pre-commitment is important because folks are betting, they are going to do all the activities, and that’s why they are buying the frequency product, and they are pre-paying for it. So, that’s also helpful.
Alex Fuhrman: Great. That’s really helpful. Thank you very much.
David Barry: You’re welcome.
Operator: [Operator Instructions] The next question is from the line of Kartik Mehta with Northcoast Research. Your line is now open.
Kartik Mehta: Hey. Good afternoon. Just looking at the GES business and with all the commentary, you obviously sounds very positive and your results positive. I am wondering as you are talking to the company, are they – is there any hesitation for forward spending? You are seeing cuts in maybe travel and companies making cuts elsewhere. So, I am wondering, as you look at some leading indicators, if there is any indicators that would say if there is any slowdown, or is it business as usual that companies are continuing to spend?
Steven Moster: Good question, Kartik. We continue to see strong demand for the services. As you know, we start working on an event about a year in advance of that event taking place and working directly with the corporations that will be attending those trade shows. And so we get a window into their spending probably six months – three months to six months before the event actually takes place. And right now, we continue to see the strength that we saw all the way through 2023. So, yes, it’s, we continue to be on the same trend. And so there has been no change to that. And on the Spiro side, we also continue to see corporate marketing budgets being very healthy and spending at all types of branding activities. Whether it’s trade show or any kind of corporate event or a brand activation event, we see pretty strong corporate spending.
Kartik Mehta: And then just on the Pursuit side, I think you talked about potential inorganic growth. And I am wondering if there has been any change in valuation or maybe how the owners are looking at it, or is this a situation where these are iconic properties and economic times really don’t change much of the valuation?
David Barry: I am happy to answer that one. I can’t really comment on perspectives on valuations of things that we might be looking at. But I can tell you that there is lots of opportunity both within the business as we look at where we can improve, and if you think about investments in our own business where we see opportunities. And if you look over the track record, I mean tripling revenue and EBITDA since 2015, one of the ways we have done that is to reinvest into the business in the right places. So, that process is ongoing, and we look every day at different organic opportunities that we can perhaps accelerate. Some of those things you are seeing coming to light this year with the expansion of the ritual at Sky Lagoon, an additional boat of Maligne Lake, where we know we have significant demand, all of those types of investments really help grow the business.
In terms of things outside the company, again, there is lots of opportunity. And as we strengthen our position and balance sheet is stronger, opportunities are there, and we will be ready to take advantage of them when the timing is right.
Kartik Mehta: And then just the last one on Pursuit side, last year, there was a – labor was hard to get and wage growth was very significant. I am wondering, as you are gearing up for the season this year, the summer travel season this year, maybe where that stands and how it might be different than in previous places?
David Barry: Yes. And I think if you go down memory lane, I mean ‘23 was a much, much easier year to hire and to onboard than it was in ‘21 and ‘22. ‘21, in particular, was very tough during the pandemic. But thank goodness, all of that’s behind us. We are fully staffed up. We have a great team of folks from around the world, whether it’s J-1 visa holders and working in our U.S. properties or young people from across Canada and across the world joining us in the Banff Jasper Collection. And so we are really fully hired up. Team has done a great job recruiting. We are in the middle of onboarding and opening now. I would say spirits are high, and they are ready to welcome guests from all around the world.
Kartik Mehta: Thank you very much. I really appreciate your comments.
David Barry: Thanks Kartik.
Operator: Thank you for your question. There are no further questions at this time. Steven Moster, I will turn the call back over to you.
Steven Moster: Thank you very much and thanks to everybody. Thanks to our employees across the globe and to our investors for their support in Viad. And we look forward to giving you another update at the end of the quarter. Thanks very much.
Operator: This concludes today’s conference call. You may now disconnect.
