Costco has quietly become a serious player in the hotel booking world, promising member-only discounts and perks that rival traditional online travel agencies and even some loyalty programs. At the same time, hotel brands continue to push travelers toward booking direct by offering exclusive member rates, loyalty points, and flexible policies.
That tension sits at the heart of Costco hotel and resort bookings, where the tradeoff between upfront value and long-term loyalty benefits becomes a practical decision rather than a theoretical one.
How Costco Travel Hotel Bookings Work
Costco Travel is a members-only service that allows Costco members to book hotels, vacation packages, car rentals, cruises, and theme park deals. To use it, you must hold an active Costco membership and log in through the Costco Travel portal.
The platform works similarly to a traditional online travel agency, letting you search for hotels by destination, dates, and occupancy, then filtering by price, star rating, and distance. You do not pay a booking fee beyond your membership, and many rates are prepaid or semi-flexible, depending on the property and offer.
Costco does not own or operate hotels. Instead, it negotiates wholesale rates and added-value inclusions with hotel groups, resort brands, and wholesalers, then passes part of the discount on to members.
That model allows Costco to highlight offers that include extras like resort credits, free breakfast, waived parking, or Costco Shop Cards on select packages. For members who like bundle-style value, these deals can appear significantly better than a standard room-only rate on a hotel’s own website.
One key nuance is that Costco Travel is strongest where it has high buying power. In practice, that often means popular leisure destinations such as Las Vegas, Hawaii, Mexico, the Caribbean, Florida, and major city breaks. In those markets, the combination of volume and predictable demand gives Costco leverage to secure more aggressive pricing or larger inclusions.
In secondary cities or off-the-beaten-path destinations, the range of properties and depth of discounts can be more limited, which affects how competitive it is compared with booking direct.
Unlike some opaque deal sites, Costco generally displays the hotel name, room type, and inclusions clearly before purchase. However, because Costco is acting as the intermediary, the reservation technically sits in a different channel from a true direct booking. That distinction becomes important when you start comparing loyalty earnings, elite benefits, and what happens when something goes wrong.
Price Comparisons: Can Costco Really Beat Direct Rates?
When travelers compare Costco Travel with direct hotel bookings, price is usually the first consideration. In certain markets and dates, Costco can be meaningfully cheaper on a per-night basis. In other cases, the base nightly rate may be similar, but Costco’s package-style inclusions create real savings.
Examples can include complimentary breakfast for two, resort credits that offset dining or spa spending, parking discounts, and bundled taxes and resort fees that would otherwise appear at checkout when booking direct.
For instance, in resort-heavy destinations, Costco packages sometimes include airport transfers and daily breakfast at a price close to the hotel’s room-only flexible rate on its own site.
For a family planning a weeklong vacation, those inclusions can add up to hundreds of dollars in effective savings. Costco also occasionally runs limited-time promotions that add Costco Shop Cards worth a few percent of the trip cost, effectively functioning as a rebate for future warehouse or online purchases.
However, cost comparisons become more nuanced once you account for hotel loyalty programs and direct booking discounts. Most major brands such as Marriott, Hilton, Hyatt, IHG, and Accor offer member-only rates that are slightly lower than public prices available to non-members.
These discounts often show up only when you are signed in to your loyalty account on the hotel’s official website. While the nominal discount may appear modest, combining it with loyalty points, elite bonuses, and targeted offers can narrow or erase Costco’s base rate advantage.
Taxes and fees can also distort quick comparisons. Some Costco listings display a total price including taxes and resort fees, while many hotel websites initially show a pre-tax nightly rate that looks cheaper until the final booking screen.
To make a fair comparison, travelers should always look at the all-in total for the same dates and room type, checking whether resort fees, parking, and breakfast are included or extra. In many real-world scenarios, Costco wins on total value even if the nominal room rate is slightly higher, but that is not guaranteed and must be evaluated case by case.
Loyalty Points, Elite Status, and Missing Perks
One of the biggest hidden costs of booking through Costco Travel is the impact on hotel loyalty earnings and elite benefits. Major hotel chains generally treat Costco bookings as third-party reservations.
In practice, that often means you may not earn points or elite night credits for those stays, and elite perks like room upgrades, late checkout, and complimentary breakfast could be reduced or not guaranteed. Policies vary by brand and even by property, but travelers should assume that direct bookings are the safest path to full recognition of status.
Some hotels will still add your loyalty number to the reservation and extend soft recognition, particularly when the property values loyal guests or wants to build a relationship.
You may receive your usual welcome amenity or a better room assignment even though the stay is technically ineligible for base points. But this is discretionary, not contractual. If you are trying to qualify for or maintain elite status, a run of Costco bookings during a busy travel year can quietly slow your progress.
For travelers who are deeply invested in loyalty ecosystems, this tradeoff can tip the balance in favor of booking direct even when Costco offers a modest price or inclusion advantage. The compounded value of points, elite night credits, and guaranteed benefits like free breakfast for Gold or Diamond members can be worth more than the one-off savings.
For example, a frequent business traveler chasing top-tier status might accept paying a slightly higher rate to lock in qualifying nights and bonus points that contribute to future free stays.
On the other hand, if you are an occasional traveler without meaningful status or plans to accumulate points long term, the loss of loyalty earnings may be insignificant.
In that scenario, Costco’s immediate savings and inclusions can be more valuable than points you might never redeem efficiently. It comes down to how often you travel, whether you stay primarily with one brand, and how much you value the future promise of free nights compared with current out-of-pocket costs.
Flexibility, Cancellations, and Customer Service
Another crucial difference between Costco Travel and booking direct lies in flexibility and who you deal with when plans change. When you reserve directly with a hotel, all modifications, cancellations, and special requests go straight to the property or its central reservations team.
That typically allows for clearer communication and faster resolution when you need to change dates, adjust room types, or request connecting rooms, especially if you are already checked in or close to arrival.
With Costco Travel, the booking is managed by Costco or its underlying travel partners. If you need to change or cancel, you usually must go through Costco’s customer service rather than the hotel. This intermediary layer can be helpful or frustrating, depending on the situation.
On the positive side, Costco is known for member-focused service and may advocate on your behalf in disputes. On the downside, response times can be longer during peak seasons, and you may face stricter rules that combine Costco’s policies with the hotel’s own terms.
Cancellation policies on Costco vary by property and rate type. Some offers feature fully refundable rates up to a certain deadline, similar to flexible bookings on hotel websites.
Others are partially refundable or completely nonrefundable, particularly when tied to promotional inclusions or deeper discounts. It is essential to read the fine print on the Costco booking page, paying close attention to time zones and cutoff times for cancellation. Assuming flexibility that is not actually in the terms can be an expensive mistake.
In irregular operations, such as storms, airline disruptions, or health emergencies, travelers who booked directly often find it easier to negotiate credits, date changes, or even goodwill upgrades with hotel staff. When a third-party booking is involved, hotel employees may direct you back to the agency, since the payment and contract reside with that intermediary.
Costco can still assist, but the extra handoffs can slow things down at precisely the moment when speed matters most. For travelers who prioritize maximum control and direct communication, booking with the hotel may feel more secure.
When Costco Travel Shines
There are clear scenarios where Costco Travel regularly outperforms booking direct on sheer value. The first is leisure packages to destinations where Costco has deep partnerships, such as major resort areas in Hawaii, Mexico, and tropical beach hubs.
In those cases, a Costco package that includes flights, hotel, and transfers can sometimes cost not much more than the hotel alone if booked separately. The bundled approach also simplifies planning for families or multigenerational groups who want fewer moving parts to manage.
Costco is particularly strong with upscale and luxury properties that are retail-priced out of reach for many travelers. By combining negotiated rates with inclusions like daily breakfast, resort credits, and occasional Costco Shop Cards, the platform can make four and five star stays more accessible.
Travelers who are not chasing elite status may find that Costco’s pricing opens doors to brands they might otherwise ignore, especially for milestone trips, honeymoons, or anniversary getaways.
Another strength is transparency of total trip cost. Many Costco offers clearly break down what is included and present a straightforward all-in price. While seasoned travelers may prefer the flexibility of building each trip element separately, others appreciate the simplicity of one number that covers the hotel, taxes, fees, and extras.
For budget-conscious planners, that transparency reduces the risk of surprise resort charges or mandatory fees that can appear late in the booking process elsewhere.
Finally, Costco’s reputation for customer advocacy and its member-focused culture can add confidence, especially for travelers wary of lesser-known online agencies. While no intermediary can eliminate all travel headaches, knowing that you have a large, reputable retailer standing behind your booking can feel reassuring.
That peace of mind has intangible value that some travelers weigh alongside strict dollar savings when comparing Costco with direct hotel reservations.
When Booking Direct Is the Better Move
For frequent travelers, loyalty enthusiasts, and those who prefer a high degree of control over their stays, booking directly with hotels still offers powerful advantages. Direct bookings almost always qualify for full loyalty points, elite night credits, and program promotions.
Over time, those can translate into free nights, suite upgrades, late checkouts, and on-property recognition that third-party bookings rarely match. If you stay often with a single brand family and value cumulative rewards, direct booking is usually the smarter long-term strategy.
Direct channels also excel when you need or anticipate personalization. Requests for specific room locations, connecting rooms, accessibility features, or unique celebrations tend to be handled more smoothly when the hotel can see and manage your reservation directly.
Many properties prioritize guests who booked through brand channels for upgrades and problem resolution, simply because those bookings are more profitable and align with corporate objectives.
In complex or rapidly changing travel situations, such as business trips with shifting meeting schedules or itineraries involving multiple cities, direct bookings can be easier to modify.
Having a direct relationship with the hotel gives you more leverage in negotiating same-day changes, late arrivals, or last-minute cancellations. Standing at the front desk with a third-party reservation sometimes limits what the staff can legally or technically adjust, even when they want to help.
Lastly, hotels increasingly offer rate parity or best rate guarantees that promise to match or beat third-party offers under certain conditions. While these guarantees require careful reading and sometimes a submission process if you find a lower rate elsewhere, they underline the brands’ commitment to drawing travelers back to their own channels. When used strategically, such guarantees can bring direct rates in line with Costco or other intermediaries, letting you keep loyalty benefits without sacrificing price.
How to Decide What Works Best for Your Trip
Choosing between Costco Travel and booking direct with a hotel is rarely a one-size-fits-all decision. It depends heavily on the type of trip, your travel frequency, your loyalty status, and your appetite for risk and complexity.
A practical approach is to start each trip with a clean comparison: look up the same hotel and room type on the hotel’s website while logged into your loyalty account, then check Costco Travel for the same dates. Compare total costs including taxes, resort fees, parking, and breakfast where applicable.
On leisure trips, especially to resort destinations or international vacation spots, pay extra attention to Costco’s package inclusions. If a Costco rate offers daily breakfast, transfers, and a resort credit at a similar or slightly higher price than the hotel’s room-only rate, the overall value may justify sacrificing loyalty earnings.
Conversely, if the direct rate is comparable and you hold meaningful elite status with real on-property benefits, the scales may tilt toward booking direct, particularly for longer stays where perks accumulate.
For business travelers and those pursuing elite status, consider creating a personal rule of thumb. Some travelers, for example, decide that any stay longer than two nights in a major chain hotel should be booked direct to capture points and elite credits, while shorter single-night stays in off-brand properties can be booked through Costco or other platforms if there is a clear price advantage. Having a consistent framework helps avoid on-the-fly decisions that might undermine your long-term loyalty goals.
Finally, assess your comfort with intermediated customer service. If you are the kind of traveler who prefers to handle everything directly with the hotel staff and values rapid, flexible responses, direct booking will likely fit your style better.
If you are comfortable calling or messaging Costco for changes and like the idea of a large retailer advocating for you, Costco can be a powerful tool. Either way, going in with clear expectations will lead to fewer surprises once you are on the road.
The Takeaway
Costco Travel and direct hotel bookings each bring distinct advantages to modern travelers. Costco leverages its buying power to offer competitive prices, bundled extras, and clear all-in costs, particularly for leisure trips and resort vacations.
For Costco members who travel occasionally or who are not committed to a single hotel loyalty ecosystem, those deals can represent significant real-world savings without sacrificing quality.
Booking directly with hotels, however, remains the gold standard for loyalty earnings, elite benefits, and a strong relationship with the property itself. Frequent travelers and those who rely on points and status for upgrades and flexibility will usually come out ahead by staying within brand channels, especially when taking advantage of member-only rates and best rate guarantees.
Direct bookings also typically make it easier to handle complex changes, special requests, and on-the-ground issues.
Ultimately, the smart strategy is not to choose one path forever but to be selective. For a milestone vacation in Hawaii or Mexico, Costco may offer a package that clearly outshines booking each element separately. For a string of work trips aimed at securing elite status or for stays where customization and control matter most, direct booking will likely be the better fit.
By comparing total value, considering loyalty implications, and understanding who handles your reservation when plans shift, you can decide which option is right for each trip you take.
FAQ
Q1: Do I earn hotel loyalty points when I book through Costco Travel?
In most cases, major hotel brands treat Costco Travel reservations as third-party bookings, which means you may not earn loyalty points or elite night credits. Some properties will still add your loyalty number and offer informal recognition, but it is not guaranteed and should be seen as a bonus rather than an expectation.
Q2: Can I get elite status benefits if I did not book directly with the hotel?
Elite benefits such as upgrades, late checkout, and complimentary breakfast are typically tied to direct bookings. Some hotels and front desk agents may extend perks as a courtesy when you have status, even on third-party reservations, but this is discretionary. If receiving full elite benefits is important to you, booking direct is the safer option.
Q3: Are Costco Travel hotel rates always cheaper than booking direct?
No, Costco Travel is not always cheaper. In some destinations and dates, Costco offers clear savings or stronger inclusions, while in others the hotel’s direct member rates can be equal or lower once you account for loyalty discounts and promotions. It is best to compare the total all-in cost, including taxes, fees, and extras, before deciding.
Q4: What happens if I need to change or cancel a Costco Travel hotel booking?
If you booked through Costco Travel, changes and cancellations usually need to be handled by Costco or its travel partners rather than directly by the hotel. The specific rules depend on the rate you booked and the hotel’s policy. Always review the cancellation terms carefully before confirming, and be prepared to contact Costco if plans change.
Q5: Do Costco Travel bookings include resort fees and taxes in the price?
Many Costco listings show prices that include taxes and, in some cases, resort fees, but this is not universal. The booking page typically breaks down what is included. To compare fairly with direct hotel rates, look at the final total price on each platform and note whether resort fees, parking, and other mandatory charges are included or added later.
Q6: Can I still use my hotel loyalty number on a Costco reservation?
Often you can add your loyalty number to the reservation, either during booking or by contacting the hotel before arrival. However, even if the number is attached, the stay may not qualify for points or elite night credit because it is categorized as a third-party booking. Any benefits you receive in this case are at the hotel’s discretion.
Q7: Is Costco Travel better for families and group trips?
Costco Travel can be particularly good for families and groups because many offers bundle elements like breakfast, transfers, and resort credits into a single, clear price. This can simplify budgeting and reduce surprises at checkout. However, for complex group needs or extensive room customization, booking directly with the hotel’s group or reservations team may still provide more control.
Q8: How do Costco Shop Cards work with travel bookings?
On some promotional packages, Costco offers a Costco Shop Card as part of the deal, usually issued after you complete your travel. The card can be used for purchases in Costco warehouses or online. While it is not a direct discount on the booking itself, it effectively acts as a rebate that lowers your net trip cost if you are a regular Costco shopper.
Q9: Are Costco Travel hotel deals good for business travel?
Costco Travel can offer attractive rates, but business travelers who rely on hotel loyalty points, elite status, and flexible change policies may prefer booking direct. For occasional business trips without strict loyalty goals, a Costco rate that clearly beats the hotel’s price and fits company policy could still make sense, provided that cancellation rules are acceptable.
Q10: How should I decide between booking with Costco Travel or directly with the hotel?
The best approach is to compare the same hotel and room type on both Costco Travel and the hotel’s official website for your exact dates. Look at the final total cost, included extras, cancellation terms, and the value of any loyalty points or elite benefits you would gain or lose. For leisure trips where Costco offers strong inclusions, Costco may win. For frequent stays and status-focused travel, booking direct usually comes out ahead.