Costco has built a devoted following on $1.50 hot dogs, industrial-size ketchup bottles and sharply priced TVs, but for many travelers, the biggest value hides in the fine print of its membership. Between exclusive vacation packages, discounted rental cars and extra cash back on every trip, a Costco card can function as an unlikely but powerful travel tool.
Understanding exactly how the membership structure, Costco Travel platform and the Costco Anywhere Visa by Citi work together is essential if you want to squeeze the most value out of every mile and hotel night you book.
How Costco Membership Works in 2025
Costco operates on a membership model that underpins everything it sells, including travel. In the United States and Canada as of September 1, 2024, the standard Gold Star and Business memberships cost 65 dollars per year, after a 5 dollar increase from the long-standing 60 dollar price.
Executive Membership, the higher tier that unlocks extra rebates and enhanced benefits, rose from 120 dollars to 130 dollars annually, reflecting both the base membership and the Executive upgrade. The company raised the ceiling on its Executive 2 percent reward at the same time, from 1,000 dollars per year to 1,250 dollars, signaling that it expects heavy users to continue putting significant spend through Costco and Costco Travel.
Behind those fees is a huge and still growing member base. Costco finished fiscal year 2025 with about 81 million paid household memberships and nearly 39 million Executive members worldwide. Executive members represent just under half of all paid memberships but generate nearly three quarters of global sales, a clear indication that serious Costco shoppers tend to opt into the higher tier and are rewarded for doing so through richer rebates and services.
Renewal rates remain exceptionally high, above 92 percent in the United States and Canada and just under 90 percent globally, which suggests that members perceive strong value even after the 2024 price hike.
For travelers, what matters is that both the standard and Executive tiers unlock access to Costco Travel, as well as warehouse and online pricing on travel-related products like luggage, cameras and gift cards that can reduce trip costs. The Executive tier simply layers on top an annual 2 percent reward on most Costco purchases, including qualifying Costco Travel bookings, which can be substantial if you routinely book big-ticket vacations.
Costco’s membership strategy also favors upgrades. The company has reported that a good portion of its rising membership fee income comes not only from the September 2024 fee increase, but from Gold Star and Business members stepping up to Executive. If you travel even moderately and make use of Costco Travel a few times a year, you are exactly the type of member Costco hopes will upgrade and, in turn, receive more back in rewards.
Costco Travel: What It Is and How It Works
Costco Travel is a separate division of the company that functions like an online travel agency reserved exclusively for members. Through a dedicated website and call center, it sells pre-negotiated vacation packages, hotel stays, cruises, rental cars and certain specialty vacations such as escorted tours.
You must enter a valid membership number to access pricing or book, and you will see Costco’s familiar emphasis on value rather than sheer breadth of options. In other words, Costco Travel is not designed to show every possible flight or hotel on earth, but rather a curated set of deals that the company believes meet its quality and price thresholds.
The biggest draw for many travelers is Costco’s vacation packages, particularly to destinations like Hawaii, Mexico, the Caribbean, Europe and popular U.S. cities. These packages typically bundle hotel stays with extras such as daily breakfast, resort credits, airport transfers or theme park tickets. In many cases, Costco adds its own sweetener in the form of a digital Costco Shop Card that you receive after travel, effectively functioning as a rebate you can spend in the warehouse or online.
When you run the math, you are often comparing a straightforward hotel rate from a public site with a Costco package that quietly includes several hundred dollars’ worth of value in extras and rebates.
Costco Travel is also well known among frequent travelers for its rental car deals. The platform partners with major brands such as Alamo, Avis, Budget and Enterprise and usually offers competitive rates with added benefits, like an extra driver at no charge in many markets. Members can typically reserve now and pay at the counter, avoid change fees, and easily rebook if prices drop. For families or groups that routinely rent vehicles on trips, the built-in extra driver benefit alone can offset a meaningful chunk of the annual membership fee.
Cruises are another Costco Travel stronghold. Instead of complicated points or onboard credits tied to elite status, Costco usually offers simple incentives like Costco Shop Cards or additional onboard credit that appears at checkout. For travelers who enjoy cruising but want to avoid chasing loyalty programs or casino offers, this kind of transparent value proposition can feel refreshingly straightforward.
Gold Star vs Executive: Which Tier Makes Sense for Travelers
From a pure travel perspective, the main question is whether it is worth paying an extra 65 dollars a year for Executive Membership compared with the standard Gold Star or Business level. Executive members earn an annual 2 percent reward on most Costco and Costco.com purchases, including eligible Costco Travel transactions, up to a 1,250 dollar cap. That reward arrives once a year as a voucher you can redeem at Costco. If you do not earn back at least the incremental fee in rewards, Costco’s satisfaction guarantee allows you to downgrade or cancel and receive a refund of the membership fee.
The breakeven point on the Executive upgrade is fairly simple to calculate. Because the Executive upgrade portion of the fee is 65 dollars, you would need to spend 3,250 dollars per year on qualifying Costco purchases to earn that amount back through the 2 percent reward. For many households that combine regular warehouse shopping with one or two substantial Costco Travel bookings, passing that threshold is not difficult. A single big vacation package, cruise or bucket-list tour can account for most of the necessary spending in one shot.
Travelers who should especially consider Executive status include families planning annual resort vacations, retirees booking multiple cruises a year and small-business owners who purchase both inventory and travel through Costco. The 2 percent reward stacks with other Costco Travel incentives such as shop cards on select packages, which effectively amplifies your return.
If your warehouse spending is modest and you rarely or never use Costco Travel, however, the standard Gold Star membership will still give you access to travel deals without the pressure to meet a spending target.
It is also important to recognize what does not earn the 2 percent reward. Executive benefits apply on most merchandise and travel purchased directly from Costco or Costco Travel, but not on third-party purchases made with the Costco credit card outside of Costco.
Flights purchased separately through airlines, for example, will not earn the Executive 2 percent reward unless they are part of an eligible Costco Travel package. Reading the current terms before a major booking is essential so you are not surprised when your annual reward certificate arrives.
For a side-by-side comparison of Gold Star and Executive memberships specifically from a travel perspective, see our breakdown of Costco Gold Star vs Executive Membership.
Leveraging the Costco Anywhere Visa Card for Travel
For members who want to maximize rewards on the road, the Costco Anywhere Visa Card by Citi plays a central role. This no-annual-fee card (for Costco members) functions as a standard Visa credit card, usable worldwide wherever Visa is accepted, and layers its own cash back structure on top of Costco’s membership rewards.
Cardholders earn 4 percent cash back on eligible gas and EV charging worldwide, including at Costco, for the first 7,000 dollars per year in purchases and 1 percent thereafter. They also receive 3 percent cash back on restaurants and eligible travel purchases, 2 percent at Costco and Costco.com, and 1 percent on all other purchases.
When used in conjunction with Costco Travel, the card unlocks even more value. Costco states that cardholders earn 3 percent cash back on Costco Travel purchases, which combines with any Executive Membership 2 percent reward and with promotional offers such as bonus Costco Shop Cards on select vacation packages.
For a large family trip booked through Costco Travel, it is possible to stack the Executive 2 percent reward, 3 percent credit card cash back and a shop card worth 10 percent of the package price, depending on the promotion. While you only receive the credit card cash back once a year as a reward certificate, similar to the Executive rebate, these layers can meaningfully reduce your effective trip cost.
Because the Costco Anywhere Visa is a general-purpose card, it can also serve as your everyday travel card outside the Costco ecosystem. The 3 percent cash back on eligible travel purchases applies broadly to spending such as airfare, hotels, car rentals, cruises and travel agencies, although definitions and coding rules are subject to change and should be checked in the latest cardmember agreement. For travelers who prefer straightforward cash back instead of juggling airline miles and hotel points, this card offers a transparent way to earn on both Costco and non-Costco travel.
As with any rewards card, the benefits only make sense if you pay balances in full and avoid interest charges. The card’s rewards do not justify carrying revolving debt. However, for disciplined travelers who already maintain a Costco membership, consolidating travel and dining spend on the Costco Anywhere Visa can generate a sizable annual reward that then feeds back into your Costco shopping or helps offset future travel purchased through the warehouse club.
For a detailed look at how the Costco Anywhere Visa earns on travel, gas and dining, and when it makes sense to use it outside Costco, see our guide to how the Costco Anywhere Visa Card works for travel.
Where Costco Travel Shines Compared With Other Booking Options
Costco Travel is not a full replacement for every travel-booking strategy, but there are specific scenarios in which it consistently shines. One of them is family resort travel to popular sun-and-sand destinations. Packages to Hawaii, Mexico and the Caribbean often include perks like daily breakfast, waived resort fees, room upgrades or resort credits that would cost significantly more if you tried to assemble them on your own.
Costco’s fixed-price structure and clear inclusion list help families avoid surprise fees at check-out, such as unexpected charges for kids’ meals, parking or resort activities.
Rental cars are another standout. Travelers often report that Costco Travel’s rental rates remain competitive even in high-demand periods and that the booking interface makes it easy to compare multiple companies at once. The inclusion of an additional driver at no extra charge, where permitted, delivers real value for couples and friends sharing driving duties. Because reservations are typically cancellable without penalty, you can book a car months in advance and recheck prices periodically, rebooking if rates fall.
For cruise fans, Costco functions as a kind of discount warehouse of onboard credit and rebates. Instead of navigating complicated loyalty tiers or casino certificates, you see your Costco value up front in the form of Costco Shop Cards or onboard spending money credited to your account. This approach suits travelers who want a straightforward price that already reflects their discount rather than a patchwork of points and perks that can be difficult to value.
The trade-off is that Costco Travel does not always show every airline or hotel brand, and it may not cater to highly customized itineraries. Independent travelers who enjoy stringing together boutique hotels, local guesthouses and obscure flight routes will still prefer working directly with airlines, hotels or specialist agencies. Costco’s greatest strength lies in mainstream leisure travel where its scale and buying power can negotiate extras and discounts that most individuals cannot secure alone.
Limitations, Fine Print and When Costco May Not Be the Best Choice
As with any travel tool, Costco membership and Costco Travel come with limitations that are important to understand before you commit your vacation budget. Some of the best deals are regionally focused, emphasizing classic North American and resort destinations.
If your plans center on long stays in off-the-beaten-path rural areas, backpacking routes or countries with limited resort infrastructure, Costco Travel may have few or no options. Even when packages exist, they may lean toward upscale, full-service properties rather than the budget or ultra-luxe extremes of the market.
Another potential drawback is loyalty credit. While many Costco Travel bookings still earn hotel points and elite-night credit, that is not guaranteed and can vary by brand and rate type. Some hotels treat Costco bookings similarly to other third-party reservations, making them ineligible for elite benefits, upgrades or point accrual.
Cruise line loyalty programs generally recognize Costco bookings, but you will not earn hotel chain points on stays that are part of a cruise package. If you are deeply invested in a particular hotel or airline loyalty ecosystem, you should weigh the value of Costco’s pricing and perks against the points and status benefits you might forgo by booking direct.
The membership requirement itself is another consideration. If you live far from a warehouse and do not otherwise shop at Costco, buying a membership purely for travel requires crunching the numbers carefully. Occasional travelers booking a single modest trip may find that a standard online travel agency or direct booking offers comparable value without the extra fee.
However, frequent or big-ticket travelers can often recoup the cost of membership, especially at the Executive level, with one or two bookings that include meaningful shop cards or rebates.
Finally, Costco Travel deals and credit card promotions can be time-limited and subject to change without notice. For instance, special offers providing a digital Costco Shop Card equal to 10 percent of a vacation package price for certain destinations have specific booking and travel windows. These kinds of promotions can be exceptionally lucrative, but only if you are able to book within the required dates and are attentive to the terms.
Travelers should always verify the current conditions directly on Costco’s site or via its customer service before assuming a particular promotion applies.
Many disappointments come down to avoidable errors, which we outline in our guide to common mistakes travelers make with Costco membership rewards.
Strategies to Maximize Costco Travel Benefits
To make the most of Costco membership and travel benefits, it pays to be intentional about how and when you use them. Start by mapping your likely travel over the next 12 to 18 months before you upgrade to Executive status or apply for the Costco Anywhere Visa card.
If you see at least one sizable trip on the horizon, particularly a resort vacation, cruise or escorted tour that could be booked through Costco Travel, estimate the total package price and calculate what 2 percent Executive rewards plus 3 percent credit card cash back would amount to. Add in any advertised Costco Shop Card or onboard credit, and compare the total effective cost with what you would pay booking elsewhere.
Next, pay attention to timing. Costco often runs limited-time promotions around peak booking windows, such as winter for spring-break travel or midsummer for fall and holiday cruises. Signing up for Costco Travel emails or checking the site periodically can alert you to deals that align with your plans. When you see a compelling offer that fits your dates, booking sooner rather than later can lock in rates and bonuses that may disappear as cabins or rooms fill.
It is also worth coordinating household and business spending around your Executive and credit card reward calendars. Because both the Executive 2 percent reward and the Costco Anywhere Visa cash back pay out once a year, planning major Costco Travel bookings in a way that aligns with your upcoming reward cycle can be helpful.
For example, making a large booking shortly after your rewards post gives you almost a full year of additional Costco purchases to accumulate toward the next cycle, potentially pushing you closer to the 1,250 dollar Executive reward cap if you are a very heavy spender.
Lastly, remain flexible. One of Costco Travel’s advantages is its generally lenient change and cancellation policies on many rental car and hotel bookings. Travelers who are willing to reprice their reservations periodically or adjust dates by a day or two can sometimes capture lower rates while retaining Costco’s perks.
Keeping an organized record of confirmation numbers and checking back on prices every few weeks before departure may feel tedious, but the savings can be significant, especially for multiweek trips or complex itineraries.
We break this down in practical terms, including timing and reward stacking, in our guide on how to stack Costco membership rewards with Costco Travel.
The Takeaway
Costco’s travel benefits are not a secret, but they are often underused by members who focus only on warehouse bargains and ignore the digital doorway labeled “Travel.” In 2025, with membership fees modestly higher but travel demand still robust, the value equation for Costco members who hit the road or take to the skies remains favorable. The combination of curated vacation packages, strong rental car rates, straightforward cruise credits and the layering of Executive rewards and Costco Anywhere Visa cash back can significantly compress the real cost of leisure travel for households that plan ahead.
At the same time, Costco’s travel ecosystem is not a one-size-fits-all solution. Road warriors chasing elite hotel status, digital nomads assembling intricate multi-country itineraries, or ultra-budget backpackers may find more flexible or targeted options elsewhere. The strongest candidates for Costco Travel are families, couples and retirees who appreciate simplicity, transparency and bundled value on resort stays, cruises and mainstream itineraries, and who are comfortable receiving much of their savings in the form of annual rewards and Costco Shop Cards.
If you already carry a Costco card, the smartest move this year may be to look beyond the food court. Spend an evening pricing out your next trip through Costco Travel, compare it honestly with other booking channels and run the numbers on Executive Membership and the Costco Anywhere Visa card. You may discover that the humble warehouse membership in your wallet is, in fact, a powerful travel tool hiding in plain sight.
FAQ
Q1: Do I need a Costco membership to use Costco Travel?
Yes. You must have an active Costco membership, either Gold Star, Business or Executive, to access pricing and complete bookings through Costco Travel.
Q2: Is Executive Membership worth it for travelers?
Executive Membership can be worthwhile if you spend at least 3,250 dollars a year on qualifying Costco purchases, including Costco Travel, because the 2 percent annual reward on that spending equals the 65 dollar cost of the Executive upgrade.
Q3: Do Costco Travel bookings earn hotel or airline loyalty points?
It depends on the brand and rate. Some hotel stays booked through Costco Travel earn points and elite credit, while others are treated as third-party bookings and may not. Airline and cruise loyalty programs generally recognize Costco bookings, but you should confirm with the provider before you book.
Q4: How do Costco Shop Cards from travel bookings work?
When a Costco Travel offer includes a Costco Shop Card, you typically receive a physical or digital card after your trip is completed. The card functions like store credit that you can use in warehouses or online toward most purchases.
Q5: Are Costco Travel rental car reservations prepaid?
Most Costco Travel rental car reservations are not prepaid. You reserve the vehicle and pay at the counter when you pick it up, which often allows free changes or cancellations and the ability to rebook if rates drop.
Q6: Does the Costco Anywhere Visa card charge foreign transaction fees?
The Costco Anywhere Visa card by Citi does not charge foreign transaction fees, making it a practical option for international travel spending wherever Visa is accepted.
Q7: Can I use Costco Travel even if I do not live near a warehouse?
Yes. As long as you maintain an active membership, you can use Costco Travel from anywhere in the United States, regardless of how close you live to a physical Costco warehouse.
Q8: How often do Costco membership fees increase?
Historically, Costco has raised membership fees roughly every five to six years. The most recent increase took effect on September 1, 2024, and brought standard U.S. and Canada memberships to 65 dollars and Executive to 130 dollars.
Q9: Are there any extra travel benefits for Business members?
Business members receive the same Costco Travel access and pricing as Gold Star members. The main difference is that Business accounts can purchase items for resale and manage multiple cards, which can indirectly increase rewards if business travel and purchasing flow through Costco.
Q10: What happens if I do not earn back my Executive Membership fee in rewards?
If your annual 2 percent Executive reward falls short of the extra cost of the upgrade, you can ask Costco to downgrade or cancel your Executive Membership. Costco’s satisfaction guarantee allows it to refund membership fees if you are dissatisfied with the value you receive.