How Much Money Can You Really Save By Booking Travel Through Costco?
Is there truly a way to save on travel? Everyone with a sense of wanderlust in their heart and not enough cash in their vacation fund has likely wondered this before, probably right after overpaying for something designated as a travel "deal." Budget travelers today may have grown weary of getting tricked by the fine print on cheap flights or discovering that their steal of an Airbnb was actually a travel site booking scam. For some of these people, who also happen to be Costco members, they might be considering taking a closer look at the travel offers that their membership affords them.
That's right. Costco maintains its own in-house travel agency, Costco Travel, complete with its own booking portal and exclusive to Costco members. Deals on theme parks, beach resorts, cruises, and rental cars all await a browse by the cost-conscious traveler. But can a business that sells ridiculously cheap hot dog combos really handle the intricacies of booking an entire travel itinerary on the cheap? The answer to this is yes, no, and maybe so, depending on where you want to go, how you want to travel, and how much you're willing to spend.
Costco offers discounts for rental cars, hotels, cruises, and vacation packages for full vacations in very popular domestic and international destinations. Members can also "build" their own package for domestic travel by putting together pick-and-choose options from a preset menu. But how can Costco achieve these travel savings? And are they right for the type of traveler you are.
Costco, a third-party travel broker
Costco members regularly claim on social media and in the press that booking their trips through Costco has saved them hundreds — even thousands — of dollars. How did these people know? They comparison-shopped comparable trips on other volume-discount sites, like Expedia.
Travel is pricey, and while Costco does offer competitive deals, they aren't total loss leaders for the company. The company might take a bath on its cheap rotisserie chicken sales, but not so much on its trips to destinations like Fiji. Consider Costco's travel savings as mid-level pricing for high-quality experiences and accommodations. The membership club's travel options range from mid-range to high-end, meaning you'll be booking with reputable vendors rather than fly-by-night operations.
Costco's considerable purchasing power enables it to serve as a third-party broker for impressive travel packages while passing its bulk-buy discount on to its members. As is the case with its more tangible products, Costco can provide discounted rates on travel packages because it pre-purchases so many of them. Costco's vendors want to maintain that consistent business, so even more deals get brokered on top of the main trip. For example, a trip package to a Caribbean resort might include extras like free drinks, food, sports equipment, and entertainment that would otherwise cost a lot extra if the member tried to arrange the trip piecemeal on their own.
Who saves most booking through Costco?
There are many types of travelers in the world, and not all of them are going to love booking their experiences through Costco — even if they end up loving their trip after booking. Costco's best deals focus on destinations that provide all-inclusive food and drink options and bulk-discount extras. Fortravelers who feel better planning every moment of their own itineraries, they may have a tough time letting Costco be their travel agent. The same goes for a traveler who prefers off-the-beaten-path travel rather than tried-and-true tourist destinations.
But for the traveler who's comfortable with trusting the traveling options Costco has already vetted, pretty strong savings can be found. From deals on guided African safaris to transportation-included trips around Sorrento, or even game-day getaways in Ann Arbor, Michigan, there's a variety of travel options to pique the interest of even the pickiest of travelers. Deep deals might go to those who enjoy resort travel most, though, with Mexico, Hawaii, and other fun-in-the-sun destinations dominating the Limited-Time Deals section at Costco Travel.
Smart shoppers willing to scour the site for deals can also save on aspects of their vacations, rather than full packages. For example, theme park tickets, car rentals, and hotel stays can provide separate savings. Also, some of the deals provide rebates in the form of Costco shop cards, so members can save on Costco products after saving on Costco travel. (On that note, for extra savings, here's what Costco's price tag codes mean.)