So there will be quarter-to-quarter variations in our events calendar as we continue to rollout programming associated with our concession commitments.
Craig Billings: And it’s too, it’s really too early to say. Honestly, I didn’t, when I think about everything we’ve done this year, and the list is extensive. I actually didn’t expect it to pick-up this quickly. The team has gotten incredibly creative and incredibly resourceful in terms of what they’ve done. And keep in mind. We do not yet have certain tools that our competitors have like an arena or an event center. Now that’s part of our plan. From a CapEx perspective. And part of our CapEx, concession commitments. And so we’ll catch-up in due course. But it’s really too early to say what the seasonal cadence will be because some can be done only outside of typhoon season, others can be done, year round. And it’s also a little too early to say what the split will be between properties.
I don’t think it changes the investment thesis much. I mean you’re talking about a few million dollars here and there, but it’s important in terms of fulfilling our concession commitments. And honestly, it’s important. If you do it right. It’s important in terms of building a brand into that region, similar to what we’ve done in Vegas, frankly with all the program that we’ve done here, it’s important for building your brands. And for casino marketing.
Brandt Montour: Helpful comments. Thanks all.
Craig Billings: Sure.
Julie Cameron-Doe: Thanks all.
Craig Billings: Sure.
Operator: Thank you. And our next caller is Robin Farley with UBS.
Robin Farley: Great, thanks. Two questions, one is and I don’t know if this may not be a key in your view to the Peninsula property recovering. But I’m curious if you have a view on the kind of the grind mass visitor coming back to Macau or, you know, what it will take for that customer to recover to 2019 levels, if you see it as a transportation bottleneck issue or kind of macro factors in Mainland China or. I guess, just would love to get your take on that.
Craig Billings: Sure, Robin. I think it’s a little bit all-of-the-above. You’re correct in that downtown is much more skewed towards transient customers. Towards a more base mass to use the term customer. And we benefit when visitation — we benefit there disproportionately visitation to Macau is high. And so as visitation to the market returns, which inevitably, I believe it will, we will benefit from that. Of course, we don’t want to — and that’s due to any number of factors, many of which you’ve described. Of course, we don’t want to wait for that. Right. So in the meantime, we need to be very-very focused on market share and driving operating leverage by gaining market share. But no doubt as that transient customer comes back, downtown We’ll benefit disproportionately to Palace, which is already doing extremely well.
Robin Farley: Thank you. And then just the other question is, just wondering why you’re adjusting for hold in the mass business in Macau, you haven’t done it historically other operators like it’s typically sort of not done. So just why the change in thought and why that would be something to start adjusting for. Thanks.
Craig Billings: Sure, others not doing it has never been a reason for us to consider. We have no problem being the first ore being a little bit of an outlier. It’s really because of the mix of our business now. I mean, we are disproportionately mass now. So what we’re trying to do is give a clearer view of how the assets are performing by providing a normalized number. Frankly, the same way we do in Vegas.
Robin Farley: Okay, great, thank you.
Craig Billings: Sure.
Operator: Thank you. Our next caller is Stephen Grambling with Morgan Stanley. You may go-ahead.
Stephen Grambling: Thanks. So you referenced accruing for the union contract in Vegas in the quarter. And I’m sure, you still have an impact in the fourth-quarter. But as we look-forward to 2024, how are you thinking about the major puts and takes to margins and whether you can hold margins and data similar to what you were just kind of outlining in Macau. Obviously, different considerations here.
Craig Billings: Sure. Well, first, it is important note before I get to the crux of your question. Normalized margin historically comprises from Q2 to Q3. You can go back and see that and it’s really due to the customer mix during the summer months. To your primary question. as we’ve said before, we really view margin as an outcome of aggressively driving revenues and diligently managing costs and outcome, not a target. So we don’t forecast margin per se. On the revenue side. I think our results in Q3, speak for themselves and we will continue to make sure that we have the best offering in Vegas. On the cost side. Julie mentioned a whole bunch of factors affecting Q3 in her prepared remarks. And with respect to the labor cost increases that you referenced, we are of course looking at ways to offset some of them.
And as I’ve said before, because of COVID, we have a playbook for every scenario out there and we know-how to run the business as efficiently as possible at any given revenue. But as always, we will focus on our service levels in our brand. And so if demand continues to be as strong as it is right now will we trim solely to claw-back. I don’t have a point of margin. For example, yet damage the brand now, but if the demand picture or a pricing power changes. We will of course manage OpEx accordingly in a manner that is best for the long-ter.
Stephen Grambling: Fair enough. And then one follow-up on the top line. How should we think about Super Bowl versus Formula 1 for you, do you generally think that this will be a different customer base. The same customer base. I guess what are you seeing as you get closer to Formula 1 and start to see bookings, I imagine for capable at least interest.
Craig Billings: I guess it at a headline level, and then I’ll turn it over to Brian. Think about it as international individuals and domestic group, but Brian, would you add anything to that.
