Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from James Boyle - C. L King & Associates.
James Boyle - C. L. King & Associates, Inc.
Scott, is your full year guidance assuming no second half economic recovery or does it presume the recession lifts in Q3 or Q4?
Scott C. Petersen
I think it incorporates a very soft economy throughout the entire year.
James Boyle - C. L. King & Associates, Inc.
What was the average monthly room number of movie purchases in Q1 2008?
Scott C. Petersen
Jim, on Slide 5 it was $16.50 for the movies and a total of $17.83 for total of what we call guest entertainment purchases.
James Boyle - C. L. King & Associates, Inc.
I can see that but I’m assuming if your average movie is give-or-take about $12.00 that would imply about one point whatever purchases per month. I’m just trying to look at it through another metric so as to compare historically. Do you track it that way?
Scott C. Petersen
You mean the actual number of purchases per room?
James Boyle - C. L. King & Associates, Inc.
Correct.
Scott C. Petersen
That’s not a data point that we publish on a public basis. During this cash year there were really no changes in the general pricing structures that we have in the marketplace. In 2006 we had implemented an across the board, I believe it was the fourth quarter of 2006, and over the past 12 months we have basically been operating within the same framework we had before, which is a variable pricing structure.
The one footnote that I would make to that would be that on the LodgeNet platform we did institute and introduce an all day purchase option for mature audience content, which has the effect of making the number of actual buys, it’s not an apples-to-apples comparison, those purchase options could be anywhere from $25 to $30 to $35 per day. It depends on the system that it’s installed or the locations it’s installed at.
Taking that aside, overall the remainder of the pricing strategy has been relatively the same.
James Boyle - C. L. King & Associates, Inc.
I noted that people continue to ask whether your movie purchase rates are going down year-over-year due to technology and other options being available, and apparently since you’re raising your price, some of it is driven just by the pricing and therefore if you had that metric publicly disclosed it might allow us to get a feel for how much is driven by lower purchases driven by higher prices or not.
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