By Doyinsola Oladipo
NEW YORK (Reuters) - Retail giant Walmart (NYSE:WMT) on Tuesday said it is teaming up with online travel agency Expedia (NASDAQ:EXPE) Group to offer its subscription service members travel benefits for the first time as retailers increase service offerings to offset a slowing in spending on goods.
Walmart joins Amazon and others who are offering new perks for members as American consumers reduce their spending across numerous categories with the exception of travel, according to a McKinsey's July 2023 consumer report.
"We're bringing together the ultimate savings membership and vacation booking site to deliver a first-ever travel-focused benefit for Walmart+ members," said Venessa Yates, senior vice president and general manager of Walmart+, the retailer's subscription service.
Walmart+ members will be able to book travel on a Walmart travel website powered by Expedia and earn Walmart cash rewards. Those rewards can then be used on future Walmart purchases or cashed out in-store.
The subscription service in May hit a record 20 million subscribers in May, up from 19.3 million in early April, boosted by increased marketing and promotional activity, according to a Morgan Stanley (NYSE:MS) survey.
Walmart also partnered with veterinary telehealth provider Pawp in May to offer Walmart+ subscribers free access to virtual veterinarians for a year.
Amazon.com (NASDAQ:AMZN) partnered with travel booking site Priceline, owned by Booking Holdings (NASDAQ:BKNG), in July to offer discounts for Prime Day, the first time an online travel agency participated in the event.
Travel companies have reported strong earnings over the past few quarters even as other types of consumer spending has slowed.