Revenue

On January 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers, as described in Note 2, using the modified retrospective approach to all contracts resulting in no cumulative adjustment to accumulated deficit. The adoption of this standard did not impact the timing of our revenue recognition based on the short-term, day-to-day nature of our operations.

The following tables present our revenues disaggregated by geographic segment (refer to discussion of our reportable segments in Note 19) ($ in thousands):



	Three Months Ended June 30, 2018
	Yucatán Peninsula		Pacific Coast		Dominican Republic		Jamaica		Other			Total
Package revenue	$	57,812	$	17,183	$	25,661	$	23,629	$	1		$	124,286
Non-package revenue	7,864		3,127		5,835		4,336		(9		)	21,153
Management fees	—		—		—		—		55			55
Cost reimbursements	—		—		—		—		78			78
Total revenue	$	65,676	$	20,310	$	31,496	$	27,965	$	125		$	145,572



	Three Months Ended June 30, 2017
	Yucatán Peninsula		Pacific Coast		Dominican Republic		Jamaica		Other		Total
Package revenue	$	61,431	$	19,221	$	25,343	$	12,458	$	—	$	118,453
Non-package revenue	9,502		4,499		5,594		2,550		—		22,145
Total revenue	$	70,933	$	23,720	$	30,937	$	15,008	$	—	$	140,598



	Six Months Ended June 30, 2018
	Yucatán Peninsula		Pacific Coast		Dominican Republic		Jamaica		Other		Total
Package revenue	$	130,866	$	42,209	$	61,049	$	44,528	$	342	$	278,994
Non-package revenue	16,094		8,169		10,864		7,824		1		42,952
Management fees	—		—		—		—		351		351
Cost reimbursements	—		—		—		—		122		122
Total revenue	$	146,960	$	50,378	$	71,913	$	52,352	$	816	$	322,419



	Six Months Ended June 30, 2017
	Yucatán Peninsula		Pacific Coast		Dominican Republic		Jamaica		Other		Total
Package revenue	$	135,605	$	43,930	$	60,345	$	31,529	$	—	$	271,409
Non-package revenue	18,073		9,131		10,451		5,601		—		43,256
Total revenue	$	153,678	$	53,061	$	70,796	$	37,130	$	—	$	314,665

Performance obligations

We recognize revenues when the performance obligations are satisfied by transferring control of the product or service to our customers as described in the table below:



Revenue	Description	Timing of Revenue Recognition
Package	Sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities. All services offered as part of the all-inclusive experience are considered to be one performance obligation.	Revenue is recognized, net of discounts and rebates, based on the agreed upon price after each stay when our performance obligation of all-inclusive services is considered transferred to the customer.
Non-package	All other revenues earned from the operations of our resorts other than package revenue. This includes, but is not limited to, the sale of upgrades, premium services and amenities, such as premium rooms, dining experiences, wines and spirits and spa packages.	Revenue is recognized based on the agreed upon price after the completion of the sale when the product or service is transferred to the customer.
Management fees	Fees earned for managing hotels owned by third-parties. The fees earned are typically composed of a base fee, which is computed as a percentage of resort revenue, and an incentive fee, which is computed as a percentage of resort profitability.	Revenue is recognized over the term of the service period as the third-party owners benefit from our management services.
Cost reimbursements	Cash reimbursements for costs related to managing hotels owned by third-parties.	Revenue is recognized when agreed upon reimbursable costs are incurred from managing hotels owned by third-parties.

We do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at our resorts are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are rendered.

Contract assets and liabilities

We do not have any material contract assets as of June 30, 2018 and December 31, 2017 other than trade and other receivables, net on our Condensed Consolidated Balance Sheet. Our receivables are primarily the result of contracts with customers, which are reduced by an allowance for doubtful accounts that reflects our estimate of amounts that will not be collected.

We record contract liabilities when cash payments are received or due in advance of guests staying at our resorts, which are presented within advance deposits (see Note 18) within trade and other payables on our Condensed Consolidated Balance Sheet. Contract liabilities decreased from $40.9 million as of December 31, 2017 to $36.1 million as of June 30, 2018. The decrease for the six months ended June 30, 2018 was primarily driven by $33.1 million of package revenue recognized that was included in the advanced deposits balance as of December 31, 2017, partially offset by additional cash payments received from guests prior to their stay and $5.8 million in advance deposits acquired in the business combination with the Sagicor Parties (as defined in Note 4).

Contract costs

We consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense these costs as incurred when the period to be benefited is less than one year.