We've all heard the idea that after the covid pandemic, Americans want experiences more than they want things. That means that after being cooped up in our homes during lockdowns, work-from-home, closed schools, and the extended covid nightmare people want to get out, go places, and spend money to have fun.
The numbers actually back that up and since the summer of 2021 the entire world -- not just Americans -- have leaned into doing things more than buying things.
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"Spending on experiences is quickly outpacing spending on 'things' since July 2021," according to a new travel report by the Mastercard Economics Institute.
The study showed that pretty much every form of travel spending is up and people around the world are putting more of their money into restaurants, bars, and experiences.
"For example, through April 2022, our analysis shows that tourism spending at bars and nightclubs is 72% above 2019 levels, while spending at restaurants is 31% above. Tourists are also spending 35% more on amusement parks, museums, concerts, and other recreational activities. By comparison, tourist spending on apparel, department stores, cosmetics and other retail categories is down compared to 2019," the report showed.
That's a trend that might be troubling to Walmart (WMT) -), a company that sells stuff, not experiences. So, to lean into that trend, the retail giant has partnered with Expedia to do something that its rival Costco (COST) -) has long offered -- sell its members travel packages.
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Walmart Enters the Travel Game
While Walmart does not have anywhere near the hundreds of millions of members Amazon (AMZN) -) has for its Prime service, its own Walmart+ offering does have millions of members. That's an audience that's theoretically very dedicated to Walmart which would likely be interested in booking travel through the retailer because they trust it to offer low prices.
That's the model Costco follows and it's actually surprising that Amazon and Target (TGT) -) have not offered competing travel services.
Through its deal with Expedia Group (EXPE) -), Walmart will now be able to jump into this growing market.
"Travel booking on WalmartPlusTravel.com is powered by Expedia Group’s White Label Template technology, giving Walmart+ members access to more than 900,000 properties, 500+ airlines, 100+ car rental companies, and thousands of activities around the world," the retailer shared in a press release.
How Walmart's New Travel Site Works
You have to be a member of Walmart+, which costs $98 a year, to use the new service. Members can book travel on WalmartPlusTravel.com and get 5% Walmart Cash on hotels, vacation rentals, car rentals, and activities bookings, 2% Walmart Cash on all flights, and a blended rate of Walmart Cash on vacation packages.
“We’re connecting Walmart’s massive customer base with Expedia Group’s extensive array of travel supply partners from all around the world," said Expedia Business President Ariane Gorin. "What's exciting is that with this collaboration, Walmart customers will benefit from Expedia's ongoing innovation through TravelOS, our A.I.-powered travel operating system, as we continue to add new product and feature updates to drive the best traveler experience.”
Expedia will also provide customer service to Walmart customers who book through the new platform. That includes live agents and artificial intelligence chatbots.
Walmart does currently offer travel services through its membership-based Sam's Club warehouse club.
