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
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
I'm a Federal Benefits Pro: I Answer These 2 Questions a LotMany federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
Smart Money Moves Savers Should Make in 2026These steps will get you on the road to achieving your 2026 savings goals.
-
How Much Would a $50,000 HELOC Cost Per Month?Thinking about tapping your home’s equity? Here’s what a $50,000 HELOC might cost you each month based on current rates.
-
My First $1 Million: Self-Employed Trader, 50, San FranciscoEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Waiting for Retirement to Give to Charity? Here Are 3 Reasons to Do It Now, From a Financial PlannerYou could wait until retirement, but making charitable giving part of your financial plan now could be far more beneficial for you and the causes you support.
-
Are You Ghosting Your Finances? What to Do About Your Money StressAvoidance can make things worse. You can change your habits by starting small, talking with a family member or friend and being consistent and persistent.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
I'm an Insurance Pro: If You Do One Boring Task Before the End of the Year, Make It This One (It Could Save You Thousands)Who wants to check insurance policies when there's fun to be had? Still, making sure everything is up to date (coverage and deductibles) can save you a ton.
-
4 Smart Ways Retirees Can Give More to Charity, From a Financial AdviserFor retirees, tax efficiency and charitable giving should go hand in hand. After all, why not maximize your gifts and minimize the amount that goes to the IRS?
