Warehouse retailer Sam's Club is giving online travel services a second try with Tuesday's nationwide launch of Sam's Club Travel, an online booking service with more selection and customer support than its previous offering.
The launch came the day after Sam's Club began offering its new Sam's Club MasterCard, which features chip-enabled security technology. The branded credit card and travel services are offered only to Sam's Club members. A one-year Sam's Club membership starts at $45.
Several of Sam's Club competitors, including Costco and BJ's Wholesale Club, also offer travel services to their members.
Seong Ohm, senior vice president of merchandise business services at Sam's Club, said the retailer offered travel services in the form of package deals four to five years ago but stopped because it wasn't offering the selection customers wanted. It was offered for more than a year, she said.
"Rather than having something that's not the best out there, we decided to pull back," Ohm said. For the new service, Sam's partnered with Tourico Holidays, a global wholesale travel brokerage company based in Florida. Pairing Tourico's proprietary technology with Sam's Club's millions of members enables Sam's Club to negotiate for lower prices on vacation packages or a la carte products, he said.
Sam's Club's $57 billion in revenue for fiscal 2014 would make it the third largest U.S. retailer if operated independently and not under Wal-Mart Stores Inc. Sam's Club also has warehouse stores in Puerto Rico, where members also will be privy to the new travel service.
Tourico, a 20-year-old firm, offers 4,500 worldwide destinations, 90,000 hotels, more than 6,000 attractions in 800 cities, 150 airlines, 18 car rental brands and 13 cruise lines, according to a release from Sam's Club.
Despite Sam's Club's size and scale, a few local travel agents contacted Tuesday didn't think the retailer's foray into the travel business would hurt their sales. There will always be customers who will want the personalized attention that comes with trips booked through a travel agent, said Frances Mayo, owner of Around the World Travel in Springdale.
"I seriously doubt that the savings is as significant as it sounds," said Mayo. As for comparison shopping on trips: "All my preferred tour companies offer 'price match,' thus pricing should not be an issue," she added. Also, there's no membership fee to use a travel agent and a portion of the dollars spent stay in the community.
"Not too long ago, a gentleman who owns a local restaurant asked why he should use a travel agent. My bottom-line response was 'So I could afford to eat in his restaurant,'" Mayo said.
Business on 06/25/2014