Costco Vacation Deals: Are They Worth It?
A one-click vacation with built-in perks — but is it the best deal?
Costco doesn't just offer deals on such bulk items as toilet paper to its legions of customers. The big-box retailer also offers vacation packages to destinations around the globe, from 5-star hotels in New York City and Las Vegas to all-inclusive resorts in the Dominican Republic, to cruises in Asia and Australia.
Costco isn't the only wholesale club offering vacation deals. BJ’s and Sam’s Club also sell travel packages to their members. But should you buy a bundled vacation deal from a warehouse club?
Here's a look at the advantages and disadvantages of purchasing a vacation package from Costco and other wholesale clubs.
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Pro: Convenience
Not a fan of planning your own vacations? A wholesale club offers one-stop-shopping for travelers — with just the click of a button, you can purchase a ready-made trip, including hotels, airfare and rental cars. They can also help you arrange any attractions you want to see. This takes the guesswork out of planning a trip.
"Booking a travel package through a wholesale club can mean cutting down on the endless planning and searching process that a lot of travelers face," says Katy Nastro, a travel expert at flight deals site Going (formerly Scott's Cheap Flights). "Busybodies who hate the endless searching and just want a selection of options to choose from can find shopping through a wholesale just as satisfying as the in-person store samples."
Con: A limited selection
Wholesale clubs don't offer as many options when it comes to hotels, flights, cruises and rental cars as travel sites such as Expedia, Orbitz, Hotels.com and Travelocity, nor can they match the unlimited selection you get when planning a trip yourself.
As a result, "Not every airline, hotel, or car rental company you prefer may be included" when you buy a vacation from a wholesale club, Nastro says.
For example, Costco doesn't offer rental cars through Hertz, and Sam's Club doesn’t offer flights.
Pro: Savings
Vacation packages from wholesale clubs are often less expensive than booking with hotels, airlines, and rental car companies directly, a Reader's Digest study found. By bundling these components, travelers can benefit from negotiated rates that aren't always available to the general public.
Another advantage is convenience. These packages streamline the planning process by putting major travel components into a single booking, which can make it easier to compare options, manage your itinerary and avoid the hassle of coordinating multiple reservations.
Wholesale clubs also frequently include added value, such as resort credits, room upgrades or complimentary perks, which can stretch your travel budget further without increasing the upfront cost.
Con: Limited travel assistance
Purchasing a vacation package from a wholesale club means you're cutting out the middleman, but that also means that you must work with the company's customer service if a problem arises during your trip. That could prove cumbersome if you encounter an issue.
Nastro offered this example: "Say you booked your package through Costco Travel, yet you missed your connecting flight. Instead of working with the airline on this issue, you must work first with Costco Travel, which can sometimes be a pain, especially if the wholesale club travel provider's customer service wait times are lengthy." This is similar to the process of booking your flight through a credit card.
Compare that with booking directly through an airline. If something happens, with many airlines such as United or Southwest, you can change your flight or take a new one through the airline's app. It cuts down on long wait times and allows you quick contingency plans when surprises arise.
Pro: Better cancellation policies
According to a recent study by Consumer Reports, warehouse clubs might have more lenient cancellation policies and fewer fees for rental vehicles than those offered when booking directly with a car rental company.
For example, Costco car rentals have no cancellation fees, including rentals from Enterprise; however, if you were to book a prepaid rental car with Enterprise directly and cancel the reservation more than 24 hours before the scheduled pickup time, the company would charge a $50 cancellation fee.
Con: You need to have a club membership
You must be a member to take advantage of travel deals from Costco, BJ’s or Sam’s Club. Membership prices vary by store, with some offering cheaper entry-level memberships and more costly, higher-tier memberships.
That said, you can receive deals that offset some initial costs, if you know when to buy one. Places such as Costco often offer deals where you can receive a digital gift card when you sign up. Like the deal below being offered by Stack Social.
Along with travel discounts, each of these wholesale retailers offer other savings. All three have exceptional prices on gas and Costco has a solid reputation for low prescription prices.
Thinking a Costco vacation is right for you?
If you don't mind having a limited selection of travel options and limited customer service, you might save a significant amount on your next vacation and enjoy the convenience of one-stop shopping by purchasing a travel package from a wholesale club.
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