Margin Expansion
Q: How did you achieve strong margin expansion, and what's the outlook?
A: The EBITDA margin improved by 200 basis points this quarter due to lower salary expenses from spreading performance-based compensation evenly this year. Additionally, robust onboard demand and guest spending minimized the need for promotions. We feel confident about current trends and will focus on maintaining absolute dollar growth.

Revenue Growth Outlook
Q: Can you sustain revenue growth above your long-term algorithm?
A: While we've been exceeding our high single-digit revenue growth target, we're not adjusting our long-term outlook yet. With 10 new ships coming into service next year, we believe high single-digit growth is achievable. We'll strive to exceed expectations but won't change our metrics at this time.

Pricing Strategy
Q: Is there room to increase service prices further in 2025?
A: Demand for onboard spend remains robust, and we've taken little pricing action this year except in some Med-Spa treatments. As we introduce new services, they'll carry incrementally higher prices. We continue to simplify menus and encourage guests to opt for longer, higher-priced services. We see opportunities for modest price increases in 2025 and 2026.

Capital Allocation
Q: Do you plan to keep debt or prioritize repayment?
A: We've restructured our debt, moving a large portion to the U.S. for interest benefits. Though we'd prefer to be debt-free, the focus on debt repayment will be less over the next year. We'll continue a balanced strategy: paying down debt, buying back shares, and paying dividends.

Prebooking Rates
Q: Can you increase prebooking rates from 22% to higher levels?
A: Our internal target is to exceed a 25% prebooking rate. Success depends on cruise lines allocating more resources to promote spa services. Prebooked guests spend more and have higher service frequency, so there's significant opportunity. We're focusing on improving marketing collaboration to boost prebookings in 2025.

Land-Based Spa Performance
Q: Why are land-based spas underperforming compared to maritime?
A: Several hotels are undergoing renovations, impacting performance at larger resorts. There's also softness in Asia and the Caribbean due to lower occupancy rates. Some of our biggest spas remain closed due to construction.

Land-Based Spa Outlook
Q: Will land-based spa performance improve in 2025?
A: As renovations conclude, we expect the land-based spa segment to grow. We're working on increasing penetration and enhancing marketing efforts to energize results. We believe 2025 should be better for this part of our business.

Data Sharing Challenges
Q: Any progress on getting cruise lines to share passenger data?
A: Cruise lines remain protective of their data and are unlikely to share more than necessary. We try different ways to gain insights but don't expect significant changes.

Improving Prebooking
Q: How can you drive prebooking rates higher without more data?
A: We're enhancing the visual experience and navigation on cruise line websites to showcase our services better. Improving imagery, adding videos, and increasing awareness help boost bookings. Collaborating on marketing spa services as part of prebookable amenities is key.

Impact of Private Islands
Q: How do cruise line private islands affect your revenue?
A: As private islands become part of itineraries, we work with cruise lines to offer more services there. Some islands provide massage treatments; others don't yet. Over time, we believe expanding services on these islands will be accretive to us.