David Goulden: Yes, Lloyd, I’d add a couple of comments. So first of all, just to kind of pick up on what Glenn lets off on the leading in. We are leading into a recovery marketplace. I said, there’s still on one of my other answers, there’s so some recovery of travel as a percentage of GDP post-COVID left tap into 2024. We haven’t seen it fully recover yet. So there are still opportunities to do that. You’ll notice though, that we are in lower spending more on marketing, merchandising, in 2023, than we did in 2019. We are getting leverage relative to what we spent in 2022. As a couple things happen. One as our direct mix increases, and of course mobile is highly correlated to direct mix. The majority, the vast majority of all our mobile — of all of that mobile app bookings are in fact direct bookings, so that helps as well.
So and then you did make a reference, I would just say to Q4, and I wouldn’t read too much into Q4. Here’s how I would explain why we expect to get some deleverage in marketing in Q4, relative to the other quarter where we’ve shown leverage. It’s really quite simple. We’re having a strong year, and we decided to invest in some additional programs in Q4 that will help us finish the year well. And to build on our momentum going into 2024. So that was us. It’s very conscious. Again, we are not going to go into the playbook in terms of what they are or where they are, but we recognize that we’re doing well this year financially, delivering great EBITDA and results. So we are leaning a little bit in Q4 to position us well, the first year and going to 2024 strong.
Again, that’s what we are doing. Not driven by any [indiscernible] in the marketplace is our conscious decision. Of course, we’ll still create leverage on marketing merchandising for the full year.
Lloyd Walmsley: Thank you.
Operator: Your next question comes from the line of Doug Anmuth with JPMorgan. Your line is open.
Doug Anmuth: Thanks for taking the questions. Glenn, you talked about expecting a strong 2024. Just curious if you have any more color on how you’re thinking about the outlook for ADRs next year. I think you said it was a 4% increase in 3Q. Any more thoughts there would be helpful. Thank you.
Glenn Fogel: I will let David talk about what you wants to [indiscernible]. I don’t think we talked about 2024. I think we talked first quarter. I will let David, clarify whatever he wants to clarify.
David Goulden: Yes, Doug, I mean, the 2024 conversation, we’re going to have that when we get into February next year, I really don’t want to have — how that now. We’ve told you a little bit about the strength of the on the books in the first quarter given the strength of bookings in the booking window. And we talked a little bit about our framework for growth post-COVID hasn’t changed. So I want to keep anything beyond that until we get to see a little bit more. We are talking to you next time, of course, we’ll give you much more insight at that point in time. But it’s too early to talk about the specifics of line items in the income statement in 2024.
Doug Anmuth: Okay. Thank you, David.
Operator: Your next question comes from the line of Lee Horowitz with Deutsche Bank. Your line is open.
Lee Horowitz: Great, thanks. Maybe following up on some of the comments around sort of the vacation rental industry? Can we talk a bit more about sort of the U.S vacation rental business. Glenn, you talked about growing supply and building product functionality in order to continue to grow that. [Technical difficulty] getting this incremental products rolled out and getting supply to the place where you are competitive relative to some others in the market. So how do we think of sort of the timeline and maybe even the investment dollars needed to get that business to the place where you want to get it to?
Glenn Fogel: Hi, Lee. Well, you won’t be surprised, I’m not actually going to give out the details exactly how and what level and what amount of money we’re going to put to work out and what the methods are. I will say that the best way to look at this and look at what we’ve done historically. And where the numbers have been going and how the growth has been going. That’s the best indication for you in terms of thinking forward, how — what we’re going to end up in result, and the results going to be. I will say that it’s fairly obvious to be looked at our site and tries to find homes in certain properties and in certain parts of the U.S., you can see perhaps you don’t have enough of them in those areas. So it would not be illogical to think that’s where we’ll start going to.
As we talked in the past, we think that there is a lower hanging fruit for us in properties that are controlled or managed by larger groups of properties, makes it easier for us to get that. So I’m not giving anything away here. When I say, well, we’ll let us go there first, and let’s be sure we’re doing that. And for example, you may have noticed that recently started doing the request on demand type of thing, where a person doesn’t automatically be able to book instantly. And that’s a product improvement because some people in, let’s say, higher quality or higher value properties. Perhaps the owner or the manager did not want to have an instant booking and want to have a chance to do it on request basis. So that’s an improvement thing. So we’ll continue to roll out all these different things that we think will make our property — our product as good as anybody else’s, it applies the money to the appropriate marketing to make sure people are aware of it, and that will enable us to continue the growth that we’ve seen so far, I hope.
Lee Horowitz: Helpful. Thanks. And then maybe one follow-up on perhaps another air of the low hanging fruit. Can you comment at all on anything you’re seeing in terms of APAC outbound travel pattern, travel patterns, and how much room there may be in this travel quarter sort of cover back to pre-COVID levels. Should we be thinking — thinking of this travel pattern as a source of premium growth in the medium term?
Glenn Fogel: I’m not sure the term premium growth, I’ll just say, well, we talked a little bit about, look, we talked some time about different geographies coming back faster in other areas. Asia was certainly the one who was last. And of course, it looks good when you’re starting to see the, nice growth rate those regions as the other ones start getting more normalized. It’s a nice thing to say. It’s certainly outbound for example, outbound China still significantly behind, when you look at any of the industry reports, and think how much lift do they have going out bond, et cetera. Although that’s a small part of our business, not going to make a huge difference even when it starts to come back. So overall, look, we love to see that Asia is going to get back to where all the other parts of the world are — and I really do and I understand the term premium that you mentioned, maybe explain that I could give a better explanation.
