Elena Terrazas Chesney
Costco doesn’t just offer deals on bulk items like 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 is a look at the advantages and disadvantages of purchasing a vacation package from Costco and other wholesale clubs.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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 like 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.
Some wholesale clubs also offer extra rotating promotions. BJ’s, for instance, currently offers customers a BJ’s gift card of up to a $500 value on qualifying cruises.
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 to booking directly through an airline. If something happens, with many airlines like 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 may 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 in advance of the scheduled pickup time, the company would charge a $50 cancellation fee.
Con: You need to have a club membership
You need to 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 of these initial costs, if you know when to buy one. Places like Costco often offer deals around Black Friday, where you can receive a digital gift card when you sign up.
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. You can also save on travel accessories with your membership:
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 of money on your next vacation and enjoy the convenience of one-stop shopping by purchasing a travel package from a wholesale club.
Related Content
-
IRS Names Its First CEO: But He’s Also Still Running Social SecurityTax News Will this new role make it difficult to address emerging issues like budget and staffing cuts and customer service concerns?
-
Ohio Property Tax Shock: Why Your New Assessment Is So High (And What Comes Next)State Taxes Higher home valuations in Ohio have led to homeowner property tax relief. But is it enough?
-
Should You Replace Your Financial Adviser with AI?Financial Help Many people already ask AI for financial advice. But is it good enough to replace a human financial adviser?
-
Savvy Savings Moves to Make Now – Or You Could Lose ThousandsDespite a rate cut and inflation, these moves can still help you reach your savings goals quickly.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's ExecutivesFeeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
A Comfortable Retirement is About More Than MoneyWhen it comes to a happy retirement, money can’t buy these things.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It HelpsSaving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
Noctourism: The New Travel Trend For Your Next Trip"Noctourism" is a new trend of building travel and vacations around events and plans that take place at night. Take a look at some inspiring noctourism ideas.
-
Eight Tricks to Shop for Glasses if You're Over 50Shopping for glasses often gets trickier — and more expensive — as you age. If you've over 50, take these steps when you set out to buy a new pair.
-
My First $1 Million: Electric Utility Executive, 56, South CarolinaEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
