After a tumultuous 2025, ALG Vacations is setting its sights on growth through aggressive promotions, product diversification and a major expansion into the Indo-Pacific market with its relaunched Blue Sky Tours brand.
The year started strong for the travel company, with solid advanced sales and a robust book of business. But around two months in, there was a shift.
"We started to see things turn," said Jacki Marks, Global Head of Trade Brands at ALG Vacations, who noted that consumer confidence began to wane.
The company watched its advanced business slow down as close-in sales didn't materialize at expected levels. Marks referred to this as a "tale of two halves."
Despite finishing the first half of the year above budget thanks to strong advanced sales, the second half started looking weaker. When ALG noticed that 2026 advanced bookings were also softening, Marks knew it was time to pivot.
Starting in August, ALG revamped its entire marketing strategy from the ground up. The company launched what Marks described as "the most aggressive group offer we've ever had" — a $1,250 credit for travel advisors along with a pick-your-perks program.
Most significantly, they introduced a Best Price Guarantee that gave advisors confidence to book groups without worrying about price drops.
The results were immediate.
"We have consistently been up year over year every single week since we launched it," Marks said, noting that prior to the offer, the company had seen year-over-year declines in weekly group closings.
ALG also rolled out a friends and family sale in September, something the company had never done before, and introduced double production credits for elite advisors to help them maintain status despite the softening market.
Looking ahead to 2026, Marks expressed cautious optimism. A significant increase in air capacity to core destinations such as Cancun and Punta Cana — including a 70% increase in seats to Punta Cana from Chicago O'Hare alone — is driving airfares down and restimulating demand.
Diversification & Expansion
Product diversification remains central to ALG's strategy.
Europe has delivered double-digit growth for three consecutive years and shows no signs of slowing. The company will add Hyatt's Mr. and Mrs. Smith collection and Under Canvas glamping product in first quarter 2026.
But the biggest expansion comes with Blue Sky Tours' relaunch, focusing on the Indo-Pacific region. While currently representing only a single-digit percentage of business, Marks believes the company can double its Blue Sky business, particularly outside of Hawaii.
To support advisors venturing into these destinations, ALG created a premier destination team with more than 5,000 hours of training. The team can assist everyone from inexperienced advisors needing help from initial client contact to seasoned pros requiring technical support for complex multi-destination itineraries.
"We do believe that with the efforts that we've put forward, we think we can double our business within the Blue Sky Tours brand," Marks said, noting that advisors have been asking for stronger package options in the Indo-Pacific market.
As for what's next, Marks hinted that technology improvements and a "one-stop-shop" for advisors to interact with ALG will be unveiled at the company's upcoming Ascend conference.
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