Wal-Mart Stores, Inc.
) Sam's Club division has launched an online booking service -
Sam's Club Travel - to serve the business and leisure travel needs
of its members. It has partnered with Tourico Holidays, a worldwide
leader in innovative wholesale travel services, in this regard.
Tourico's business model aims to provide reasonable deals to its
members, even amid rising costs of fuel, flights and
Through its SamsClub.com/travel website, Sam's Club members can
select their choice of destination or opt for any vacation package
and also save on every package selected from an available range of
4,500 worldwide destinations, 90,000 hotels, 150 airlines, 18 car
rental brands and 13 cruise lines. The website is user-friendly,
hassle-free and does not allow pop-up windows and external sites to
In addition, members will also have access to the portal's
integrated TripAdvisor reviews, real time price comparisons, "Click
to Chat" instant member service and secure booking services.
Members can save up to 50% on selected hotels; up to 10% on
rental cars; up to 15% on cruises; and up to 25% on attractions and
activities. Members can save even more using the new 5-3-1 Sam's
Club MasterCard, which is co-branded by
Wal-Mart to Issue Chip-based Credit Cards
). The card will provide 5% cash back on fuel purchases, 3% cash
back on travel and dining and 1% cash back on all other
We believe that Sam's Club has launched its online service at
the right time when demand for travel is rising in the U.S.,
despite increasing cost of travel. According to the U.S. Travel
Association, domestic leisure travel is expected to rise 1.7% in
2014 to 1.6 billion trips, while working Americans are expected to
take 452 million domestic business travel trips in 2014.
Walmart has been struggling of late and performed
disappointingly in all the four quarters of fiscal 2014 and the
first quarter of fiscal 2015. The company is therefore seeking new
ways to boost revenue amid macro-economic headwinds like
budget-strained customers, reductions in government benefits,
higher taxes, tighter credit and higher group healthcare costs.
The move to provide online booking service for its members is
surely an encouraging step to combat a sluggish revenue
environment. Walmart currently holds a Zacks Rank #4 (Sell).
Some better-ranked retailers include
Ingles Markets, Incorporated
), both of them holding a Zacks Rank #2 (Buy).
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