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Note 3 - Revenues
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 3—REVENUES

 

Customer Deposits and Contract Liabilities

 

The Company’s guests remit deposits in advance of tour embarkation. Guest deposits consist of guest ticket revenues as well as revenues from the sale of pre- and post-expedition excursions, hotel accommodations, land-based expeditions and certain air transportation. Guest deposits represent unearned revenues and are reported as unearned passenger revenues when received and are subsequently recognized as tour revenue over the duration of the expedition. Contract liabilities represent the Company's obligation to transfer goods or services to a customer for which the Company has received consideration from the customer. The Company does not consider guest deposits to be a contract liability until the guest no longer has the right, resulting from the passage of time, to cancel their reservation and receive a full refund. In conjunction with the suspension or rescheduling of expeditions, the Company provided guests an option of either a refund or future travel certificates, which in some instances exceeded the original cash deposit. The value of future travel certificates in excess of cash received is being recognized as a discount to tour revenues at the time the related expedition occurs. Future travel certificates are valued based on the Company’s expectation that a guest will travel again. As of  March 31, 2024 and December 31, 2023, the Company has $290.8 million and $252.2 million, related to unearned passenger revenue, respectively.

 

   

Contract Liabilities

  

(In thousands)

        

Balance as of December 31, 2023

   $ 93,906  

Recognized in tour revenues during the period

     (148,810 )

Additional contract liabilities in period

     175,234  

Balance as of March 31, 2024

   $ 120,330  

 

The following table disaggregates our tour revenues by the sales channel it was derived from:

 

   

For the three months ended March 31,

  
   

2024

    

2023

  
    (unaudited)  

Guest ticket revenue:

                

Direct

     63 %     59 %

Agencies

     22 %     23 %

Affinity

     4 %     7 %

Guest ticket revenue

     89 %     89 %

Other tour revenue

     11 %     11 %

Tour revenues

     100 %     100 %

 

Under the brand license agreement between the Company and National Geographic, effective January 1, 2024, National Geographic no longer receives commissions on sales bookings through the former National Geographic sales channel as the co-selling arrangement operates as direct sales through the Company’s booking system. In the three months ended March 31, 2023, the National Geographic sales channel accounted for 14% of the Company’s consolidated guest ticket revenue. In the table above, 2023 guest ticket revenues through the National Geographic sales channel have been classified as direct sales for comparison purposes.