Alex Fuhrman: Hey, guys. Thanks very much for taking my question, and congratulations on what sounds like a strong start to 2023. Wanted to ask about some of the lingering challenges that you are still seeing and try to get a sense of how much they might be weighing on your EBITDA this year. I think you mentioned that some things like quarantines in some places and headlines — headwinds related to air travel and the loss of the Northeast Passage. Are those major headwinds as you think about your profitability? And just curious, which is more impactful, those sort of macro headwinds or your own cancellation policy, which has now reverted back to the pre-COVID policy, is that going to be — do you think the bigger driver of profitability as you start to get through all of the bookings that were made under the old policy?
Dolf Berle: Thanks for the question there, Alex. I think the good news is that I think all of the lingering topics are improving pretty steadily. So, pretty much consistently now we’re getting good news out of foreign countries that are lowering their requirements and it’s only just a few such as New Zealand, Panama, Argentina that have even more lenient policies than they had in the past. And I think health concerns are going down dramatically. We’re seeing very few incidences of COVID on the ships that obviously gets back to guests that are communicating with each other and their community, and so I think people are feeling safe. The airline issues were more significant, some weeks ago than they are today as the world is kind of getting back into more of a routine.
So, I would say those are improving. But I would say that those are more significant than the cancelation policy. As it relates to the cancellation policy, we’ve returned to pre-pandemic policy, which does have a penalty associated with cancellation. And in 2024, we’re actually going to more of what is an industry standard, which is even a higher level of penalty for cancellation, closer to 15% of the cost of the trip. And so, I think those will improve. But on a relative basis, you would — I would say the external factors are more significant than the internal ones, and that would be true throughout our industry, but I think we’re negotiating them fairly well. Let me turn it over to Craig for a little more specific as it relates to how that’s affecting EBITDA.
Craig Felenstein: Yes. Thanks, Dolf. So, when you think about what’s impacting us from the items that were mentioned, they all really end up in the same place, which is are we getting to the same levels of occupancy that we want to get to as a company. We’re not there yet. We’re certainly going to be much better than we were in 2022, but we’re not back to the 90% level that we were back in 2019, and all of these things are an overhang on that side of the house. It’s hard to say how much each one of them is as a percentage. But certainly, when people decide at the last minute because they have health concerns to cancel and it may not be related to COVID, it may be related to any sort of illness that impacts us because we can fill that ship in a short period of time where they have the ability to cancel.
As Dolf, mentioned, as we get through 2023 and certainly more to the back half of 2023, we anticipate that not to be as much of an issue because the cancellation policies back to where it was previously. The exception to the — aside from the revenue what I would say is pressures that we’re feeling because of some of the items that Dolf mentioned is, it’s important to remember that fuel is still a headwind for us. Traditionally fuel has only been about 3% or 4% of our overall costs. It’s certainly ranking higher than that right now. Prices have come down on the fuel side from where they were at the end of 2022 or I would say more towards the middle to end of 2022, but they’re nowhere near yet where they were back in the 2019 timeframe. So, there is a headwind on that front as well, which is impacting EBITDA.
Alex Fuhrman: Okay. That’s really helpful. And then, if I could ask, Dolf, so it looks like you’re going to be chartering some voyages on the Sea Cloud II in 2024. Could you tell us a little bit more about that? Is that in response to more demand in the Mediterranean? Or are there may be opportunities to free up your other ship to concentrate on other regions?
