Why cheaper travel sites keep losing to Costco
January 5, 2026
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The extras set Costco Travel apart. Prices often include breakfast, resort credits, waived fees, free extra drivers, and Shop Cards that other sites charge for later
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Many of their travel bookings let you reprice or cancel without penalties, saving hundreds on flexible fare or trip insurance add-ons
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Try to stack your rewards. Executive cash back, the Costco Visa, and post-trip Shop Cards can turn a higher price into the cheaper trip overall
You cant impulse-buy a vacation the way you toss a rotisserie chicken into your cart. Theres no travel desk next to the tire center, no cruise samples by the bakery. In fact, the only clue that Costco even sells travel is a small rack of brochures near the exit that most shoppers walk past.
Thats why Costco Travel remains one of the most overlooked Costco perks, even among longtime members. But skipping it could mean leaving serious money on the table when planning your next vacation.
Costco Travel has quietly grown into a major player in the vacation space over the past 25 years. According to company executives, U.S. members booked more than $100 million in travel in just the five days after Thanksgiving last year, and annual bookings now run into the billions. Thats still small compared to mega booking sites, but Costco isnt trying to be everything to everyone.
How Costco Travel works differently
Costco applies the same philosophy to travel that it uses in its warehouses. This means much fewer travel options for you, but what they do offer is usually a low negotiated price, with a ton of built-in value.
This means you might not find every airline or every hotel and flights are typically bundled into vacation packages.
Also, be aware that resorts are pre-selected and rental cars are offered through a short list of major brands.
But by being selective, Costco is able to negotiate some awesome extras that most travelers usually end up paying for separately.
Those extras often include things like the following:
- Free daily breakfast for two.
- Resort credits.
- Waived resort fees.
- Costco Shop Cards after your trip.
Smart tips for using Costco Travel to save money
If youre considering booking through Costco, heres how to get the most out of it.
1.Start with rental cars
If youre new to Costco Travel, rental cars are probably the easiest place to start.
Prices are often lower than booking direct, additional drivers are usually free, and you dont need a credit card to reserve. For many travelers, this alone can save $100$300 per trip.
Pro tip: Re-check rental cars weekly as Costco Travel does NOT penalize you when you cancel and rebook. Rental car prices swing wildly as inventory changes so youre smart to re-check frequently. For example, lets say you book a midsize SUV for $620/week. Two weeks later, the same car could drop to only $430. Cancel, rebook, done.
2. Book Costco Travel packages for the perks then reprice flights later
Costco Travel bundles flights into your package, but many packages allow you to modify or rebook flights after you purchase them.
So be sure to lock in the resort you want go to + any perks (often the best part), then monitor your airfare separately.
For example:
You book a Mexico all-inclusive package primarily for the resort, and $150 shop card. Three weeks later, airfare drops by $180 per person.
All you have to do is call Costco Travel at 866-921-7925 and reprice the flight portion, keeping everything else intact.
3.Compare packages, not line items
Costco Travel shines with bundled vacations.
To that end, when you compare prices, dont just look at the nightly rate. Factor in breakfast, resort fees, credits, and any free Costco shop cards.
What looks more expensive upfront can end up being significantly cheaper overall.
4. Be flexible on resorts and destinations
Be aware that Costcos inventory is curated to give you the best value, its definitely not endless.
If youre dead-set on one specific boutique hotel or a specific airline, Costco might not have it. But if youre flexible, thats where the value appears and Costco Travel is a must use.
5.Stack travel rewards and Costco membership benefits
If you have a Costco Executive membership or a cashback travel card (like the Costco Anywhere Visa), you can layer rewards on top of Costco Travel prices.
Example:
When you book a cruise through Costco Travel and you can stack the following:
- Earn 2% back with an Executive membership
- Get 3% cashback on the travel bill with the Costco Visa
- Receive a Digital Costco Shop Card after sailing
When you combine these, thats potentially hundreds of extra dollars back.
6. Use it for big trips, not complex itineraries
Costco Travel is best for Hawaii, Mexico, the Caribbean, cruises, Europe packages, and Vegas-style trips.
Its less ideal for multi-city, custom itineraries with lots of moving parts.
7. Use Costco Travel as a refund insurance policy
Try to book big trips through Costco Travel when youre worried about plans changing.
This is because Costco Travel is unusually generous with changes and cancellations compared to most discount travel sites.
Specifically, with many of their packages, you can actually cancel or modify your plans up to a certain date with no penalty, or a fairly small 10% charge. This is a huge advantage over most travel sites who often lock you into a non-refundable rate unless youre willing to pay extra.
Example:
Lets say youre planning a trip to Europe six months out. Booking elsewhere, youll often pay $300$500 extra for cancel for any reason coverage or flexible fares.
But when you book through Costco Travel, you book the standard package and you get to keep the flexibility built in.
If your plans end up changing you can oftencancel and rebook later. No sunk trip insurance cost and no lost deposit.
8.Use Costco Travels boring hotel list to dodge resort junk fees
This tip sounds backwards, but it works, just hear me out.
Costco Travel intentionally limits which hotels it works with which is good for the traveler as it filters out a lot of properties that rely on add-on fees to make money.
For example, hotels that partner with Costco Travel tend to bundle things other sites charge separately for. Things like parking, Wi-Fi, resort fees, and daily credits. On other booking sites, those fees often show up AFTER you think you found a deal.
So, Costco Travel might look more expensive at first glance because it doesnt play the hide the fees game. But once you add everything up, it often wins on price. Especially at resorts, beach destinations, and tourist cities where fees are out of control.