by Brian Major
Last updated: 9:00 PM ET, Wed October 30, 2024
ALG Vacations (ALGV) premiered new programs and initiatives
across its array of hospitality, tour operator, retail and destination
management brands at last week’s Ascend conference in Cancun, with all enhancements
designed to capitalize on the continuing robust leisure travel environment.
Even as the gathering celebrated strong leisure travel
sales in 2024, Ray Snisky, group president, ALG distribution, did warn the 767
travel advisors and 149 suppliers in attendance that airfares are trending
higher for most Caribbean and Mexican destinations in 2025, driven by operator capacity
cuts.
Excluding the Dominican Republic and Puerto Vallarta, every
major Caribbean and Mexico destination will operate with reduced capacity in
2025, Snisky said.
Regardless, consumers remain focused on leisure vacations following
the pandemic, driven by a desire for new experiences, driving growth for ALGV’s
expanded hotel and resort base, company officials said.
“The value of the all-inclusive experience will continue to
ring true,” said Snisky.
ALGV officials at the conference said the company is focused
on enhancing the reservation experience for its advisor customers through
technology upgrades highlighted by “seamless” options and elevated communication.
In 2025, the hospitality giant will also focus on an
expanded product portfolio that extends beyond ALGV’s bread-and-butter Caribbean and Mexico resorts and tour offerings to encompass
deluxe curated hotels and tour experiences in Europe, officials said.
European Access
ALGV has taken significant steps in the past two years to expand
the range of destinations in which the company offers hotels resorts and
operates land-based tours.
At Ascend, Snisky cited ALGV parent Hyatt’s 2023
acquisition of London-based luxury hotelier Mr & Mrs Smith as an example of
the company’s integration of luxury travel options.
Travelers can now book the 700-property boutique chain’s hotels
via Hyatt's website and mobile app. World of Hyatt loyalty program members may
also earn and redeem points on Mr & Mrs Smith bookings.
“A big thing you will see us talking about more and more is
diversifying next year,” Snisky said.
Advisors gathered in Cancun last week for ALGV’s Ascend conference. (Photo by Brian Major)
He added, “I’m proud that we’ve been so powerful in Mexico
and the Caribbean and how we’ve been a leader there, but we want to continue to
have diversity. When you go to the airport, not every person you see is going
to Cancun or the Dominican Republic.”
“Europe is going to be a push for us and our team has
already done a great job,” said Snisky. “I think you’ll see more product
there.”
“We pride ourselves to listening to travel advisor feedback
to help guide the evolution of our products and services and Europe is a big
part of that,” said Jay Seltz, ALGV’s managing director, brands.
Said Seltz, “We’ve made meaningful investments in
marketing, technology, products and policies and have seen substantial growth
from where we were a couple of years ago. In fact, this year alone we’ve had
bookings to Europe from over 10,000 agents nationwide.”
ALGV’s strengthened Europe program includes a “robust
expansion of our product line with additional destinations, hotels and airlines
and tourism excursions,” Seltz said. “We have so much more product to sell than
two years ago.”
ALGV is expanding beyond Europe, Snisky said. The company
has recorded significantly increased bookings to destinations including Dubai
and the Maldives, despite not marketing those destinations via dedicated
programs.
Luxe by ALG Vacations
ALGV is also reaching out to white-glove luxury travelers.
Launched earlier this summer, Luxe by ALG Vacations offers nearly 450 luxury hotels and
concierge services in global destinations.
The collection features five-star hotels with recognized deluxe
brands including Andaz, Four Seasons, The Ritz-Carlton, Waldorf Astoria,
Impression by Secrets and St. Regis.
“Historically our focus has been on the upper end and
middle America. We never had a value proposition for the luxury segment.” Seltz
said. “We wanted to change that.”
He said ALGV worked closely with members of its travel
advisor advisory board and “other luxury focused agencies around the country”
to develop the program.
Participating hotels met specific criteria for inclusion,
including multiple industry designations for deluxe properties, said Seitz. The
program also includes luxury amenities at the properties, including spa and
dining credits.
Additionally, Seltz said the program includes a travel
advisor concierge desk providing “services beyond the typical vacation
package.”
Travel Protection Plus
Keenly aware of the potential risks associated with leisure
travel, post pandemic travelers are increasingly focused on purchasing travel
insurance, a factor that is driving business for ALGV, company speakers said at
the conference.
“We are a self-insured company, so our Travel Protection
Plus (TPP) is run internally,” said Jacki Marks, global head, vacation trade
brands.
Marks said travel packages that include TPP insurance represent
a large percentage of ALGV’s profitability.
“In fact, the profitability of our bookings with advisors who
support TPP versus the ones that don’t is a 50 percent difference,” she said. “We
make very slim to no margin on a non-TTP booking.”
Advisors’ increased policy sales are a win-win proposition,
Marks said. “It’s such an important part of what we do. The more we can support
and do the things that make our company money, the more we can invest in you.”
As an example, Marks said ALGV has introduced a “Missed
Connections” policy to provide airport travelers whose flight were either
cancelled or delayed for more than three hours $1,000 to book another flight. “A
lot of trips have been saved as a result of this policy,” Marks said.
The enhancement was the result of ALGV responding to
advisor’s concerns about increasing flight delays and interruptions, Marks
said.
She added, “We also have a price guarantee, so if you book
a trip with us and the price goes down, you can call in and get your customer
that lower price.” Marks said the price guarantee is designed to motivate
advisors to encourage clients to book early.
“We like to get [advisors] to convince their customers to
get on the books early and get the flight they want,” said Marks. “If the price
goes down, we can get you the lower price.”
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