David Bernstein: Yeah. The only thing I’ll add is, keep in mind is that we essentially got back to historical occupancy in the back half of 2023. So the occupancy opportunity in 2024 is much more heavily weighted to the first half, which I described in the — in my prepared remarks, where we were able to increase occupancy considerably by 11% in the first quarter. And we do expect occupancy to go up in the second quarter as well.
Josh Weinstein: And our brands, I don’t want you to take this the wrong way. Our brands are being quite thoughtful about opportunities to introduce more families than they maybe had in the past, looking at their cabin configuration. So there’s always opportunities and we encourage our brands to certainly lean into that.
James Hardiman: That’s helpful. And then, Josh, you seem to make a point of noting that you don’t think the current demand strength is really pent-up demand at this point, which seems to suggest that maybe we’ve graduated from the post-pandemic phase to the post-pandemic phase. Maybe speak to the secular story that seems to be building here whether it be from an industry perspective or a company-specific perspective, I think a lot of people are just trying to figure out the sustainability of the demand growth that we’re seeing. Obviously, per diems are ahead of sort of that long-term algo, right? How long can that ultimately last, and what are going to be the drivers there? Thanks.
Josh Weinstein: Sure. So I’ll — I think I’ll speak for the industry. Jason, Harry, hope you don’t mind. But I would say that there is more and more of a realization of the value and experience gap that cruising has to other alternatives. And since the pandemic, both of those things have effectively gapped out because it’s a greater value because of the price jacking that the land-based operations have been able to do and they’ve done it without providing a comparable guest experience. And when you compare that to us, even with our outsized per diem growth, it’s still a value gap. People are not stupid. Consumers are not stupid. They are looking for value and they’re looking for experiences that are worth paying for. And when you line that up, it is boating very well for the cruise industry.
We now speak on behalf of the corporation, we are also leaning more into advertising, getting our messaging out, doing it more effectively, which is additional tailwinds. We — our new to cruise is up over 30% versus last year first quarter. It’s not pent-up demand. It is truly casting the wide net, having a great experience and delivering. And so I do not see an ending point. We have room to close the gap to land when it comes to the value and still be able to champion the value while leaning into the experience. So I think that backdrop is incredibly encouraging for the industry.
James Hardiman: That’s really good color. Thanks, Josh.
Josh Weinstein: Yeah, thanks, James.
Operator: Our next question comes from Steve Wieczynski with Stifel. Please proceed.
Steven Wieczynski: Yeah. Hey, guys. Good morning. So, Josh or David, if we go back to the yield guidance for the year or the revised yield guidance, I should say, moving it up 100 basis points, I mean, I think that makes total sense, given you have a lot more visibility into the way that the year is going to look, and you’re not — you’re probably in an extremely, extremely well-booked position. I guess my question is going to be more on the onboard side. And as you kind of think about the rest of the year, I would assume you guys are probably taking somewhat of a conservative view around the onboard metrics. And I guess saying that even differently is if onboard kind of stays where it is today, I would assume there’s probably then upside to the — to your guidance. That — can I ask that that way, hopefully?
David Bernstein: Steve, I think one of the things, remember onboard, as I mentioned in my prepared remarks, we are seeing increases on both sides of the Atlantic. It’s just that there’s a mix impact, and you’re going to see somewhat of a mix impact in the second quarter as well although not nearly as big for the first — as the first quarter because of the occupancy growth will not be as great or I should say the opportunity will not be as great in the European brands in the second quarter. But on both sides of the Atlantic, it’s going up and we feel very good. We’re — as I said, we’re seeing continued strength in onboard on the guests. We are accelerating the pre-cruise sales. We saw a double-digit increase in terms of the percent of pre-cruise sales of onboard revenue in the first quarter. So a lot of positive things are happening and all of that was built into our guidance.
Josh Weinstein: Yeah, I’d say, Steve, as always, we try to give our best understanding of how the world looks today while continuing to push and press internally with our brands to optimize and maximize both on the ticket and on the onboard spending, which is more important as we move forward to look at on a combined basis, given bundling and how we package things for our guests. And it just hasn’t slowed down, which is really the message that people should take. And I know there was some commentary that came out that caused some noise about are there — is there anything that we need to be worried about for Q4 slowing down? And for us at least, it’s the opposite. The acceleration has included Q4 both on the volume and the price. So long may it last.
