In Cancun, airlines have reduced their flight capacity due to low demand earlier this year, yet ALG Vacations is weathering the impact better than expected.
Despite a 20% decrease in air capacity for the latter half of the year, ALG Vacations has experienced only a 5% to 10% decline in bookings, according to Ray Snisky, the company’s groups president. He shared this insight with travel advisors during the annual Ascend 2026 conference.
“In many cases, airlines don’t create demand, they follow it. So, you’ve seen a lot of capacity move out in the second half of this year,” he said.
Compared to 2024, airlines have cut 1 million seats to Cancun and 700,000 to Jamaica. However, Snisky anticipates a rebound in capacity by the second quarter of 2027.
The reduction in flights followed challenges in both Cancun and Jamaica. Snisky mentioned that ALG Vacations started 2026 strongly, but two days of cartel-related violence in Puerto Vallarta in February disrupted tourism across Mexico. Although Cancun, ALG’s top destination, is nearly 1,600 miles from Puerto Vallarta, it was the hardest hit by the fallout.
Jamaica, ALG’s third most popular destination, also faced difficulties as it continued to recover from Hurricane Melissa, which struck the island in late 2025.
Additional challenges this year included economic concerns, the conflict in Iran, rising gas prices, and high airfares. Executives noted that travelers, sensitive to costs, are booking fewer excursions, opting for domestic trips, or forgoing travel insurance.
People are saying, “Hey, I don’t know if I want to spend a couple thousand dollars on excursions; I think I’m just going to go and chill out,” Snisky said.
Jacki Marks, global head of trade brands, highlighted growth in domestic travel and shorter international trips, reflecting ongoing cost concerns. She urged advisors to encourage early bookings to secure better airfares and offer greater value.
On October 23, the final day of the conference, ALG Vacations launched an early Black Friday sale. “With the way we’re seeing ’27, we have to stimulate early advance purchase because airlines are not going to drop prices,” she said.
More are worried about the seaweed than the cartel right now, said Renee Manukin, an advisor for Uniglobe in from Wheeling, W. Va.