Good morning, and welcome to the Norwegian Cruise Line Holdings Business Update and Second Quarter 2022 Earnings Conference Call. My name is Darryl, and I will be your operator. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instructions for the session will follow at that time. As a reminder to all participants, this conference call is being recorded. I would now like to turn the conference over to your host, Jessica John, Vice President of Investor Relations, ESG and Corporate Communications. Ms. John, please proceed.

Thank you, Darryl, and good morning, everyone. Thank you for joining us for our second quarter 2022 earnings and business update call. I'm joined today by Frank Del Rio, President and Chief Executive Officer of Norwegian Cruise Line Holdings; and Mark Kempa, Executive Vice President and Chief Financial Officer. Frank will begin the call with opening commentary. After which, Mark will follow to discuss our financials before handing the call back to Frank for closing remarks. We will then open the call for your questions. As a reminder, this conference call is being simultaneously webcast on the Company's Investor Relations website at www.nclhltd.com/investors. We will also make reference to a slide presentation during this call, which may be found on our Investor Relations website. Both the conference call and presentation will be available for replay for 30 days following today's call. Before we begin, I would like to cover a few items. Our press release with second quarter 2022 results was issued this morning and is available on our Investor Relations website. This call includes forward-looking statements that involve risks and uncertainties that could cause our actual results to differ materially from such statements. These statements should be considered in conjunction with the cautionary statement contained in our earnings release. Our comments may also reference non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release and presentation. With that, I'd like to turn the call over to Frank Del Rio. Frank?

Thank you, Jessica, and good morning, everyone, and thank you for joining us today. Over the past several quarters, we have reached many pivotal milestones as we continue the steady march of our post-pandemic recovery. On our last call, we had just welcomed the last ship in our fleet back to service, becoming the first major cruise operator to be fully operational. This quarter, we are pleased to report that we have reached another key milestone with operating cash flow turning positive for the second quarter. While our focus is on our profitable future, when I take a moment to reflect on the tremendous progress we have made since launching our great cruise come back just over a year ago, I can't help but be immensely proud of the entire team in Norwegian for rising to the occasion time and again and delivering impressive results. Working well alongside us has been the travel agent community who more than anyone can appreciate the challenges that we as an industry have overcome, and more importantly, can also see the tremendous opportunities that lie ahead. We thank them for their unyielding support throughout this journey. We have been disciplined and methodical in our ramp-up and have maintained a clear and consistent mindset focused on our go-to-market strategy of market-to-fill and emphasizing value over price by continuing to expand and refine our bundling strategy. Our guiding principle has been a focus on the long-term profitability of the Company, particularly for 2023 and beyond, by protecting our long-term brand equity and building on our industry-leading pricing. This means making intentional tactical sacrifices in the short term in favor of long-term sustainable results. With this ethos at the forefront of our business plan, we also continue to be opportunistic, exploring all options to accelerate our recovery.…

Thank you, Frank, and good morning, everyone. Before I begin my commentary on our financial results and outlook, I would be remiss if I did not take a moment to thank our team of nearly 35,000 team members across the globe for their continued dedication, passion and commitment to excellence. Their collective efforts are propelling us forward as we continue to execute on our operational and financial recovery plan. We have made tremendous progress to date, which has led to the significant financial inflection point of generating positive operating cash flow in the quarter for the first time since the start of the pandemic. Turning to our second quarter results. During the quarter, we returned our full fleet back to service with the relaunch of Norwegian Spirit in early May. Our load factor for the quarter was 65%, in line with our prior guidance, which reflects our methodical approach to ramping up occupancy while maximizing pricing. Numerous sailings across key regions and markets achieved over 90% and 100% occupancy, with particular strength in recent months in the Caribbean and Bermuda markets. We continue to expect sequential quarterly increases in occupancies, with load factors returning to historical levels for the second quarter of 2023. Strong ticket pricing and onboard revenue generation drove total revenue per passenger cruise day in the quarter up approximately 20% versus 2019. As we look to the third quarter, we expect this metric to increase by high single digits compared to 2019 levels. This is impressive considering the impact in 2022 of the Russia-Ukraine conflict on premium-priced European, in particular, Baltic, itineraries, which are heavily weighted to the third quarter. As a reminder, three ships were redeployed entirely as a result of the conflict, including one for each brand, and a total of 60 sailings across our…

Thank you, Mark. And before we wrap up our prepared remarks, I'd like to provide an update on our global sustainability program, Sail & Sustain, which slide 18 outlines key accomplishments and milestones. Since we last spoke, we published our second annual comprehensive ESG report and SASB aligned disclosure on World Oceans Day in June. The report highlights our progress and commitments on our top ESG priorities. As we strive to provide critical transparency to our stakeholders this year, we focused on expanding and improving the data disclosed in our report, including expanding Scope 3 greenhouse gas emissions reporting, providing climate risk and resiliency data through our TCFD assessment, and strengthening human capital disclosure, including with data related to diversity as well as training and development. We also increased the scope of our third-party assurance to include many of these new data points. Earlier this year, we also announced that we are pursuing net zero greenhouse gas emissions by 2050. This ambition spans our entire operation and value chain as we aim to bring all of our key partners along with us on this important journey. As we have said previously, a key driver to achieve our net zero ambition is the development of alternative fuels along with the associated critical infrastructure at destinations globally to support the creation, distribution, storage and usage of these fuels. Methanol is one of the fuels we are actively exploring. And we recently joined the Methanol Institute to collaborate, share and adapt solutions alongside the institute's members of methanol producers, distributors and technology providers. We will continue to evaluate a variety of alternative fuels and share learnings with other companies as we collectively try to find a viable long-term solution. And before I turn the call over to Q&A, I'd like to leave you with some key takeaways that you can find on slide 19. First, we continue to execute on our return-to-service plan and are achieving key milestones as a return-to-normalcy. The improving public health and regulatory environment, including our recent relaxation of testing and vaccination protocols, are a tailwind. And our entire team is focused on setting the stage for long-term sustainable profitability in '23 and beyond. Second, we are seeing a strong consumer with a healthy desire to spend on travel and experiences, particularly in the upscale demographics our brands target. This strength is demonstrated by our improving booking trends, robust pricing and strong onboard revenue generation. Lastly, we are excited for the transformational and highly profitable growth we have in store over the next five years as we welcome eight additional ships to our fleet after Norwegian Prima. We've covered a lot today, so I'll conclude our commentary here and open up the call for your questions. Operator?

Our first question comes from the line of Dan Politzer with Wells Fargo.

So, you guys certainly had some positive commentary on 2023. I think, Frank, you gave the first time -- the sales are pacing 40% higher than this time historically. I'm just trying to bridge to 2023 EBITDA, which you said is going to be a record. Does that assume pricing is going to continue to accelerate, or is that more of a function of cruise costs moderating from that second half pace which you guys have set?

Hi, Dan and welcome to the cruise industry. Look, I think it's everything. I think we're going to see occupancies return to normal levels. We expect that to begin certainly by second quarter of '23. We expect pricing to be higher in '23 than 2019. We have more capacity, more high price capacity. Remember, in 2019, we took delivery of Encore literally in the last few weeks of the year. We had no contribution from the Regent Splendor, which was delivered in February of 2020. Both of those vessels will have a full year in '23. We'll have a full year of Prima. We'll have roughly 7 months of Vista, 6 months or so of Viva and a little bit of Grandeur towards the end. So, we've got new ship deliveries that are extraordinary, high-priced. We have -- as of today and trending better every day. I really think that our announcement yesterday of relaxing protocols is really going to be a tailwind. We saw it instantly yesterday, and it accelerated throughout the day. Today is also gangbusters compared to a typical Tuesday. The last thing we have control over is overall inflation. But if you believe the experts, and we are seeing, as Mark mentioned in his prepared remarks, some green shoots, where costs are already coming down, including fuel, including food costs, that's strong. And so today, we sit here telling you that we have record load, record pricing, record capacity days that we're absorbing very easily. And therefore, we strongly believe that we will have a record net yield in '23, which results in record EBITDA.

And Dan, just to highlight, further to what Frank's saying, it's not only the top line growth and the profitability of the new ships we have coming on line. We are focused on costs. Obviously, 2022 has been a very lumpy year. It will continue to be a bit lumpy for the second half given where our load factors are expected to be. You have to remember that a lot of our costs are fixed in nature. So when you look at it on a unit basis, yes, they are a little bit higher in the second half in -- for 2022. But again, we expect normalization of that as we go into 2023. And we've stated very clearly, we are spending dollars on demand-generating initiatives, i.e., marketing, building a very strong 2023 book across the board. So we're making the investment today. We're not chasing the incremental load factor for next quarter. We are focused on a very profitable, high-yielding, lower cost 2023, which we believe will result in a record EBITDA year next year.

Got it. And then, just for my follow-up. For the third quarter, I know you guys have talked about pricing tracking up high single digits. Any additional color, or if you could unpack that, just given, obviously, Europe, I would assume is a headwind this year. So to the extent you've seen strength in other regions, just kind of a lay of the land would be helpful.

Yes. Look, Alaska is very, very strong. Our Caribbean product is also selling well. We took a large vessel out of the Baltic very last minute reposition to Port Everglades, which she's doing very, very well. Bermuda is doing great. Europe isn't doing all that back considering what's going on over there with the Ukraine conflict. We are leaning more on European stores business, which typically underperforms in terms of both ticket price and onboard revenue. And still, overall, our yields are better in Q3. So, I think we're going through, like Mark mentioned, some lumpiness. We've had protocol situations that are improving. The elimination of the testing requirement to get back into the country was huge. Americans simply didn't want to take the chance to be stuck in Europe should they contact COVID. That's had an impact over the short, medium term. Remember, one of the wonderful things about the cruise industry is you have great visibility because of the booking curve, people book way in advance. So, when these things occur, it impact the short term, which is why we simply don't want to chase short-term occupancy at the expense of long-term pricing. Pricing has a long tail. The occupancy, the load factor of any given sailing, once it's -- that sailing is finished, it's finished. It has no impact on the long run or no cumulative impact. But pricing does. So for us, it's incredibly important, especially since we target that high-quality, high-paying consumer to maintain pricing discipline, as you can see, across the board to be up in pricing, 20% for 2023 is truly extraordinary.

Our next question comes from the line of Brandt Montour with Barclays.

So maybe just on the back of that, and apologies for the -- to the near-term question. I feel like I'm splitting hairs a little bit here. But when I look in your deck now versus last quarter, it looks like the back half in terms of when you sort of were looking for positive adjusted EBITDA may have down shifted a little bit. And I think maybe you just covered it, Frank, in talking about not giving up occupancy for price. But I want to know if there was anything else in there that you just weren't really expecting three months ago that maybe impacted that. .

No, I don't think so. It's just the cumulative sustained lasting issues on -- related around Omicron, it's only been in the last weeks that, number one. The Biden Administration took down the requirement to test negative to get back into the U.S., number one. Number two, the CDC dropping the cruise guidelines, which occurred about three weeks ago, and just yesterday, us announcing the relaxation of our own protocols. I think those three items, each one of them had a positive impact on bookings. And as we said in our prepared remarks, each one of those events triggered an improvement in booking volumes. But remember, booking -- the booking curve on average is about seven months out. So when you say that all this happened around midyear, whether it was late June, mid-July, now early August and you look seven months into the future, that's where you get, you get to 2023. We could, we could like others, chase short-term occupancy and sell cruises for crazy prices, but we don't want to do that. We never have done that. That is not our strategy. I remind you what happened back in '08 and '09, when -- the great recession, certain cruise companies did drop their prices to ridiculous levels. And it took them, in some cases, 10-plus years, and in some cases, they've not yet reached those pre great recession yields. I'm not willing to mortgage the company for 10-plus years in order to window dress the next quarter or so. I just won't do it. We're here for the long term. We're managing the business on a long-term basis. COVID had a major impact. We were shut down for 18 months or so, and the recovery is not instant mashed potatoes. If you want instant mashed potatoes, you got to go elsewhere because we're here for the long run. And our pricing strategy, how disciplined it is, is proof of that. To be -- to have 40% more ticket sales on the books right now compared to 2018 despite a 20% increase in capacity is formidable. And I've been doing this for 30 years. I've managed cruise companies in good times and in bad times, and I am convinced beyond a shadow of a doubt that you don't sacrifice the long-term pricing power of your brand in order to achieve short-term load factor gains.

Thanks for that, Frank. We don't like instant mashed potatoes either. And maybe just a quick modeling question on -- from -- in terms of gross revenue, you gave us a little bit of guidance for the 3Q. And I was just curious if you could just walk us through that to sort of net revenue per PCD. And the only reason I bring that up is because it looks like the commission and transportation line in the 2Q was a little bit elevated. I don't know if that was a higher flight costs that you guys are passing through or whatnot. But maybe you can unpack that a little bit for us.

Yes. Hi Brandt. Good morning. It's Mark. So yes, when you compare our gross in Q2 versus Q1, you will see -- gross to net, you will see a slightly elevated cost structure. And that's going to be representative of more of the ongoing cost structure. I think Q1, given all the dynamics where we had many sailings, many cancellations, we had quite a bit of ancillary revenue coming through in the gross line, which may have bumped up the next, so to speak. But as we stated in our prepared remarks, we have now embarked on our air program that we've been working on for many years. So, you are starting to see the costs of that come through. And so, I think you're going to see these more -- these are going to be the more norm level, so to speak. But it's coming through in both the gross. And obviously, when you look at the net, and again, considering the fact that in Q3, we were heavily weighted, particularly in Europe, and we're still having very strong pricing, I think it's a pretty impressive result.

Our next question is coming from the line of Steve Wieczynski with Stifel.

So, one of the questions we've gotten a bunch this morning, and Frank, you've already talked a little bit about this, but it's the change in the '23 book position today versus kind of where you were back in May. And obviously, pricing has actually improved a good bit, but the level of bookings have potentially slowed a bit. And I would assume this is all going to stem from your go-to-market strategy, which you've already discussed a lot. So, I guess, the question here is, should we expect moving forward that pricing should continue to basically push north, but we, us, investors have to be prepared that the book position could get moved around more than what we've been accustomed to in the past? And then, the second part of this question also, if you guys could -- I don't know if you will give this or not, but give us a sense of where you think you'll turn the calendar year in terms of being booked for '23 versus where you would be historically.

Good morning, Steve, there was a lot there in your question, so I'll try to remember it all and remind me if I miss something. You can't be ahead significantly forever, because at some point, the time lines converge. So, we're very, very pleased where we are today for 2023 in terms of cumulative book position. As the calendar goes forward and we get closer to '23, I would expect us to stay more or less where we are today. Because if you recall, back in 2018, I think it was this very call in early August, where I said we had now reached the optimal balance between advanced bookings and pricing. If you book too fast, you leave money on the table. If you book too slow, you'll pay the price later by having to discount to fill, and we don't want to go there. So, we're very happy with the pace that we're at. We don't want to accelerate it much more than we have. We're instead focusing on price. We think that the tailwinds that I described so far this morning is going to help. But we don't want to be ahead any more than we are today because we had reached that point in '18 where we thought we were optimum, and we want to maintain it. It all had to do with the booking curve and different itineraries. So, I'm pleased where we are today. Not looking to push load factors, to accelerate load factors, although, again, I do believe that two or three tailwinds that we discussed this morning are going to have a natural tailwind to bookings. Did I miss one of your questions, Steve?

No. That pretty much covers it all, Frank. And then the second question actually is going to be probably for Mark here, and it's going to be a liquidity question, which I'm sure you're tired of talking about. But Mark, I fully understand your comments you made in your prepared remarks, that we've seen some -- but at this point, we've seen some of your competitors say their liquidity profile was fine. And the next thing you know, we turn around and see them raise equity or do some kind of debt deal. So, I just -- I want to be clear here that -- and I know we can never say that -- that we shouldn't expect any type of dilutive raise over the near term given I think you said your cash flows at this point should be able to take care of pretty much all your near-term maturities.

Hi, Steve. Yes. So look, based on everything we see today, and I'll repeat it again, we believe we can meet all of our liquidity needs organically. What you've seen from some of the competitors and more recently was really around refinancings of more near-term maturities. And specifically, what I called out in my prepared remarks is that was something we were focused on over the course of the pandemic. So, as you look at our maturity power and if you put aside the -- our normal operating facilities, our revolver and our term loan A, which we plan to amend and extend by the end of this year, we have a very clean path during our recovery. So, with that, we still have debt capacity should we need to go to the markets. We have no plans on raising liquidity via equity. We've said that before. We've diluted our shareholders enough through this pandemic. So, we feel good where we are, and we'll continue to watch that. But more importantly, we have a relatively clean path going forward. So, we feel good today.

Our next questions come from the line of Patrick Scholes with Truist.

With your pricing strategy, and I completely understand the rationale for that, but I wonder how much does the current staffing market play into perhaps giving up some occupancy but holding pricing. And I relate this to some news that just came out with Diamond Princess canceling some itineraries due to not enough staffing. So again, how much does possible issues with staffing play into the strategy? And also maybe just some -- if you could give us just an update on the general staffing environment for you folks?

Yes. Patrick, this is Frank. Look, the internationally sourced crew that make up the abundance of our staffing on board, it's pretty back to normal. Quite frankly, I was surprised to see what you mentioned happen to another company. But we're not immune to it. We have challenges in that area that -- but it's not keeping us from filling the vessels, except for one, and that's Pride of America, which as you know is the only American flag vessel that requires us to have 75% of our crew to be American citizens. And we are having issues sourcing labor and crew for that vessel. And that vessel, which unfortunately is also our highest yielding vessel with the Norwegian brand, we've purposely kept the load factor since she's returned to service at 40%. So, would our overall load factors be higher in Q3 and Q4? Yes. And pricing would be higher. But we're purposely keeping it at that lower level because of labor shortages. We believe we have a road which, by year-end, we should see that vessel return to full occupancy. Certainly, the demand is there. It's disheartening every time we have to go and cancel and -- people who are booked and expect to go, and we have to keep that load factor in the 40% range. But that's around the edges. And like I said, we expect to be back at 100% occupancy on that vessel by year-end.

Our next questions come from the line of Vince Ciepiel with Cleveland Research.

I wanted to come at the cost perspective from maybe a different angle. Obviously, a lot of puts and takes here, with restart costs, maybe some pull forward of marketing, and you have elevated fuel prices to deal with as well. You go back pre-COVID, the business was pretty well dialed in, with EBITDA margins in the low-30s. And as you're thinking about the business longer term and planning for years ahead, and maybe you just assume that fuel prices at some point get back to what I'll call more normal range, is there any reason to think that margins don't get back to the neighborhood that they were before? I guess, another way of asking it is, has something changed in the relationship between operating costs and the pricing that you're seeing out in the market today?

Good morning, Vince. So, the short answer to your question is no. While we are seeing some near-term headwinds with the cost pressures like every other business is seeing, longer term, we still believe that we have a very strong operating leverage. And the simplest example of that is it's almost a 2 for 1 relationship. Every point of yield is generally 2 times the point of cost in terms of monetary value. So, we still believe that to be intact as we look out into 2023. Obviously, it's very early to give any sort of concrete guidance around that. But apart from taking -- when we look at 2022, and internally, we try to normalize what the cost structure is, you have to remember that we have the full burden of cost today, yet we don't have the full complement of passengers on board. We're doing that purposely. So when you look at the metrics, like I said earlier, it's lumpy. But, as you look into '23 and then beyond, that operating leverage is fully intact, setting aside fuel, which we think we've mitigated reasonably with our hedge program. But we think there's a very, very real near-term path to getting back to historical margins. We just have to be able to operate consistently, operate our vessels at historical load factors, which we said we expect to be doing for second quarter of 2023. And I think you're going to start to see the normalcy appear very quickly.

That's really helpful. And maybe separately, on the bookings commentary, it sounded really encouraging with sequential improvement, a record day yesterday, a strong morning, and just thinking about the occupancy guide for the third quarter. And I guess less short-term focus, but maybe more of an update on where the booking curve is at. Can you help us understand where close-in bookings are versus where they are historically and where the booking curve is at from a length perspective?

There's a lot there as well, Vince. Look, historically, the booking curve at the age level, knowing that each brand has a slightly different nuances, it's about 7 months. And today, it's slightly more elongated than that, I would say, closer to 9 months, primarily because of our focus on 2023 bookings versus 2022. If you gave me a choice of selling a cabin or a booking for a '22 departure versus a '23 departure, I'll take a '23 departure. So, our marketing is all geared towards 2023. We'll take '22 bookings, of course. But we're not pushing it. And certainly, we're not discounting to attract that kind of business. We believe investors are focused on '23 and beyond and not necessarily '22. So for us, '22 is a transition year. We're very pleased that we got the entire fleet operating. We're very pleased we took delivery of Prima. We're very pleased that we've now turned cash positive. But in terms of pedal to the metal focus, getting back to normal on margin, on yields, on EBITDA, on profitability, it's all about 2023 and beyond.

Our next questions come from the line of Robin Farley with UBS.

Most of my questions have been addressed already. Just one on -- so much of your maturities in the next 18 months look like they're ECA-related. And I wonder if you could talk about the potential there for those to be extended or pushed back in some way without you having to go to the capital markets and borrow for that. Thanks.

Look, our ECA and all of our lenders have been phenomenal over the pandemic and really have been really flexible. But they too are commercial organizations, right? So, while we're going to work -- continue to work closely with them, first and foremost, as I've said, we believe that we can meet all of our needs -- liquidity needs organically. We have 20% more capacity coming on line next year, which is driving significant growth. But -- and so as we'll look -- as we look forward, if there are any near-term significant headwinds, we're going to look at all the options that are available out there. I would not want to point specifically to the ECAs or any other lender, but we're going to look at all options. And as we've seen in the past, I think there's a strong tailwind, so to speak, to make sure that the industry is thriving. So -- but more importantly, we don't think we need to do that. We don't think the industry needs to do that. And the industry is recovering. Let's keep in mind where we were this time last year. We were just starting to operate. And a year later, over the course of time, we are now turning positive cash flow. We're generating positive EBITDA. So, the machine has started and the flywheel is going. We just have to let it keep percolating, so to speak. So, we feel good. But look, we're going to look at all options, should the need ever arise.

Okay. No. Great. That's helpful. Thank you. And then just one clarification as a follow-up. You talked about onboard revenue being 30% higher, I think, it was compared to Q2 '19, which is a remarkable increase. Can you talk about how that's bundling? Do you have a higher percent of bundling in than you did in Q2, or kind of what adjustment is in there for the fact that -- some of that, I guess, is like in ticket price that you kind of allocate to onboard revenue for accounting purposes versus -- or is that 30% increase just purely what is spent once people get on board? Thanks.

Well, it's certainly generating from what we're seeing on today's consumer, what they're spending on board. I will remind everybody on the call that we have been bundling now probably since late 2016, 2017. We started that in the industry. So, our numbers on a comparable basis are relatively clean. There's always some nuances between the two buckets. But we are not having any sort of any apples and oranges comparison in our '22 versus 2019 results. So, we raised -- as we've said, we've raised prices. In terms of all of our offerings on board, consumers are spending. We've gotten smarter in the pre-marketing of our products, creating that sense of urgency before the consumer steps on board. We talked about the consumer who -- those consumers who have a stronger propensity for presales, they also spend more, about 30% or 40% more once they're on board. So, it's a combination of all those. But the numbers are strong. We're seeing a strong consumer today, spending today's dollars. And we feel that bodes well for ourselves and the industry.

Our next question comes from the line of Jamie Katz with Morningstar.

I guess, my question primarily is around sourcing strategy and maybe how you guys have altered that given the weakness that we've been hearing in European consumers and how you're using that as a competitive advantage. And then just any details you have on marketing plans ahead of the wave season given the strong demand that you're seeing? Thanks.

Yes. We're not going to share with you our marketing plans for wave. I do believe that this coming Q1 will be the first true wave since 2020, which was cut short by the beginning of the pandemic. In terms of sourcing, look, we prefer an American consumer onboard all our vessels regardless of where the itinerary is operating. Americans book earlier, book a higher cabin category, and as Mark mentioned, spend more money on board. And that is still our basic go-to-market strategy. But for European sailings, partly because of the hesitancy by many Americans to travel to Europe until the mandate to test negative to come back to the U.S. is lifted, we leaned a little heavier on our European sourcing. Our European sales and marketing team did a fantastic job of accelerating demand from European marketplaces. But pricing suffered a bit. And in spite of that overall pricing suffering a bit, we still posted higher pricing in Q2, expect higher pricing in Q3 going forward. So, I think overall, the European consumer has improved a bit or we've done a better job of sourcing those high-quality consumers out of Europe like we do in the States. But make no mistake, we rely on the American consumer perhaps more so than others, because at the end of the day, we think they're the most resilient, certainly the wealthiest, understand our product best, and we'll continue to do that.

Thank you. That’s helpful.

Okay. Well, as always, thank you so much for your time this morning and for your support. The entire team here at Norwegian Cruise Line Holdings will be available today to answer any of your questions. Have a great day, and stay safe, everyone.

Thank you. That does conclude today's conference call. We appreciate your participation. You can now disconnect your lines. Enjoy the rest of your day.