For years, Costco Travel has had a reputation among savvy travelers as a secret weapon for saving on vacations, cruises, and rental cars. But as prices and loyalty programs shift, a fair question keeps coming up: is Costco Travel still actually cheaper than booking directly with airlines, hotels, cruise lines, and car rental companies, or has its edge faded into myth? The answer is nuanced.
Costco Travel can still deliver real savings and valuable perks, but not in every situation and not for every type of traveler. Those tradeoffs are built into Costco Travel’s pricing and value model, which favors bundled benefits over headline discounts.
How Costco Travel Works Behind the Scenes
Costco Travel operates much like a large-volume travel agency. Costco negotiates bulk contracts with cruise lines, resort chains, rental car companies, and tour operators, then packages those rates for members. The company does not claim to have the lowest price in every scenario.
Instead, the business model focuses on a mix of competitive base pricing and strong added value, such as Costco Shop Cards, resort credits, and bundled inclusions like breakfast or rental cars.
All Costco members have access to the same base travel rates. Executive Members can receive additional benefits on select bookings and an annual 2 percent reward on qualifying Costco Travel purchases after travel is completed. The reward is issued as a certificate that can be redeemed at warehouses or converted into a Costco Shop Card, which can then be used like cash at Costco.
This structure means that even when the initial price is roughly comparable to booking direct, the effective cost can be lower once rewards and shop-card bonuses are factored in.
It is important to recognize that Costco Travel is not a metasearch engine like Google Flights or a marketplace such as some major online agencies. You will not see every airline, every boutique hotel, or every small local tour.
Instead, the platform curates certain brands and product types, prioritizing scale, mainstream appeal, and negotiated perks that Costco can clearly display and market.
Costco Travel vs Booking Direct on Vacation Packages
Vacation packages are where Costco Travel most often shines, especially to popular destinations such as Hawaii, Mexico, the Caribbean, and major theme park hubs. A typical Costco package might bundle a well-known hotel or resort with airport transfers or a rental car, plus extras such as daily breakfast, resort credits, or a digital Costco Shop Card.
When you price out each component separately, Costco’s total can come in slightly cheaper than booking direct, and often significantly better once you factor in those extras.
Consider a common scenario: a five-night stay at an upscale resort where Costco’s package includes a mid-size rental car and daily breakfast. When compared to booking the hotel directly and arranging the rental car separately, you may see only a small difference in published nightly rates.
However, Costco’s package could include hundreds of dollars in added value through credits and shop cards that the resort itself is not offering to the general public. Even when the bare room rate is similar, the total vacation cost per night can meaningfully favor Costco.
That said, there are exceptions. Some hotel chains offer members-only discounts or loyalty promotions that do not appear on third-party channels, including Costco. If you have elite status or are enrolled in a hotel’s points program, the value of earning or redeeming points, plus potential upgrades, could offset or exceed the extra value built into a Costco package.
Travelers loyal to a specific chain should always compare not just cash prices but also the value of points and benefits they would give up by not booking direct.
The timing of your search also matters. Costco often publishes fixed packages with set travel windows, and last-minute stays or niche dates might be priced more flexibly through the hotel directly or via another online agency.
For prime seasons, though, such as spring break in Hawaii or winter in the Caribbean, Costco’s contracted inventory can sometimes be cheaper precisely because it was locked in before peak demand pushed rates higher on open channels.
Are Costco Cruise Deals Really Cheaper?
Cruises are another area where Costco Travel frequently offers significant value compared with booking directly through a cruise line. In many cases, the base fare shown on Costco matches the line’s advertised price for the same cabin category and sailing date.
The difference comes from the incentives layered on top: Costco commonly adds a Costco Shop Card, shipboard credit, or both, which function as a rebate against your total vacation cost.
Recent corporate commentary from Costco leadership and third-party reporting highlight just how robust the cruise segment has become for the company. Costco has booked high-end itineraries such as a roughly 150-day around-the-world voyage costing nearly three hundred thousand dollars, paired with substantial shipboard credits and a five-figure Costco Shop Card.
While that is an extreme example at the luxury end, the underlying structure is similar on more modest itineraries. For a standard seven-night Caribbean or Alaska cruise, Costco often matches the line’s price but returns a few hundred dollars in value through a shop card or onboard credit.
For many travelers, that setup effectively makes Costco cheaper even when the cruise line insists that direct bookings are at “best available” rates. The cruise line may still honor its own loyalty program benefits and status-based perks even when you book through Costco, because from the line’s perspective, Costco Travel is just another travel agency.
This means you can sometimes stack your cruise line status benefits with Costco’s added incentives without sacrificing base pricing.
Where Costco is less likely to win is on heavily promoted, limited-time sales that cruise lines push out to their email subscribers or loyalty members. In those cases, a cruise line may release flash discounts or onboard credit offers that take time to filter through agency channels.
It is still worth checking Costco, but if you receive a very specific targeted offer directly from a cruise brand you are loyal to, that direct promo may beat the standard Costco package for that sailing.
Rental Cars and Hotels: Has Costco Lost Its Edge?
For years, Costco Travel was a go-to source for rental cars, particularly in North America. Many travelers used it as their default search tool, often finding rates meaningfully below major online agencies and the rental brands themselves.
More recently, however, some members have reported that Costco no longer always has the lowest rental rates and that competitors such as general booking platforms, or even booking directly with the rental agency, can undercut Costco’s prices on certain dates.
Anecdotal reports over the past few travel seasons describe situations in which Costco’s best weekly rate on a compact car was hundreds of dollars more than what travelers could find by searching widely and booking directly with a major rental brand.
This suggests that while Costco’s contracted rates are still competitive in many markets, they are no longer universally the best deal. The post-pandemic rental car landscape, with fleet shortages, dynamic pricing, and shifting partnerships, appears to have narrowed Costco’s advantage.
On the hotel-only side, Costco’s offerings are more limited and tend to focus on midrange and upscale properties rather than small independents. The base price on a room booked through Costco can be comparable to other online agencies, but Costco’s strength is again in added value: included breakfast, resort fees folded into the package, or a shop card on completion.
For simple one-night stays or budget roadside hotels, direct booking or a hotel’s own app may still be cheaper.
Ultimately, for both rental cars and hotels, Costco Travel should now be considered “one quote among several” instead of an assumed best price. The platform still regularly delivers good deals, but the variability in travel pricing since 2020 means you need to compare across multiple sources rather than relying on any single outlet, Costco included.
Factoring in Executive Membership and Rewards
The financial calculus around whether Costco Travel is cheaper than booking direct changes once you layer in membership rewards, especially the Executive Membership.
As of 2025, a standard Costco Gold Star membership costs a set annual fee, while upgrading to Executive doubles that cost but unlocks an annual 2 percent reward on qualifying purchases at warehouses, online, and through Costco Travel. The 2 percent reward on eligible Costco Travel bookings posts after travel is completed and can be redeemed at Costco or converted into a shop card for future spending.
This reward structure effectively reduces your net travel cost, particularly if you are a frequent traveler or book high-value vacations and cruises. For instance, a family spending several thousand dollars on a Costco Travel package might earn a reward worth tens of dollars or more, on top of any specific package bonus such as a digital Costco Shop Card.
For very large bookings, such as luxury cruises or long resort stays, the 2 percent reward alone can be substantial, although it is capped annually and excludes certain taxes and fees.
It is important to keep in mind that all Costco members, regardless of tier, see the same base travel prices. The Executive upgrade does not lower the ticket price; it simply adds rewards and extras that reduce your effective cost. If you are purely a light traveler and rarely use Costco Travel or warehouse services, the incremental Executive fee may not pay for itself.
However, if you already shop regularly at Costco and plan one or two sizable trips using Costco Travel each year, the combined value of 2 percent rewards, occasional exclusive Executive-only benefits such as extra resort credits, and other service discounts can tilt many borderline comparisons in Costco’s favor.
When comparing Costco Travel to booking direct, you should always analyze total value instead of headline price. That means adding up the explicit perks (breakfast, credits, shop cards), estimating the value of your 2 percent Executive reward if applicable, and then subtracting the annual membership cost you pay for access. Only then can you fairly decide whether Costco is truly the cheaper option for you.
When Booking Direct Can Beat Costco Travel
There are several common situations where booking direct is likely to come out cheaper or more valuable than Costco Travel, even before you consider loyalty points. The first is when you are using or earning points through an airline or hotel program.
Booking a long-haul international flight directly through an airline’s website may cost the same as through Costco or an online agency, but the airline might offer bonus miles or flexible change policies for direct customers that are not available through intermediaries.
Similarly, hotels often limit full points earning and elite-qualifying nights to direct bookings. If you are aiming for or maintaining elite status, the value of late check-out, complimentary breakfast, room upgrades, and bonus points on future stays can easily outweigh the shop card or credit Costco includes.
In particular, loyalty-focused travelers in brands such as Marriott, Hilton, or Hyatt are often better off booking direct unless Costco is offering a very large discount or perk that clearly beats what they would earn from the chain.
Another scenario where direct booking can be a better deal is during targeted sales and member-only promotions. Airlines and cruise lines send specific discount codes, onboard credit offers, or fare sales to their email lists and app users. These events can temporarily undercut standardized agency packages.
Because Costco Travel, like other agencies, relies on published pricing and contracted deals, it may not immediately reflect or stack every targeted promotion that a company sends to its loyalty members.
Finally, travelers with highly customized itineraries, such as multi-stop trips that involve boutique hotels, local guesthouses, and independent tour guides, will often find that Costco does not cover the products they need.
In these cases, booking direct, often with the help of a specialist travel advisor, is simply more practical. Costco’s strengths lie in mainstream, high-volume travel segments; niche or highly personalized journeys are typically better arranged outside its ecosystem.
Strategies to Decide if Costco Travel Is Actually Cheaper
Because there is no universal answer across all trips, the best way to judge Costco Travel’s value is to adopt a simple comparison ritual whenever you plan a significant journey.
Start by pricing your trip on Costco Travel, including all taxes and fees. Take note of exactly what is included: is there a rental car, is breakfast daily or only for certain days, are resort fees covered, and is there a Costco Shop Card or resort credit delivered after travel?
Next, recreate the same itinerary as closely as possible by booking direct. Price the same hotel room type, same flight cabin and route, same cruise sailing and cabin, or same rental car category directly with the provider.
If you participate in loyalty programs, estimate the points or miles you would earn and the value of any elite perks. Look for targeted promos you have received by email or in the provider’s app, and apply those where relevant. Your comparison should be based on total expected value, not just sticker price.
Then, consider your Costco membership tier. If you are an Executive Member, calculate the 2 percent reward you would receive on an eligible Costco Travel purchase and how easily you can redeem it. If you are a basic member, factor in the possibility of upgrading if your overall Costco spending is high enough that the rewards would offset the upgrade fee.
Remember that if you rarely shop at Costco outside of travel, the payback period may be longer, and you should be conservative when assigning value to future rewards.
Finally, add a practical layer to your decision. Booking through Costco centralizes your customer service: if something goes wrong with a package, you call Costco Travel rather than negotiating separately with each provider. Some travelers value that simplicity and Costco’s reputation for customer-friendly policies enough that they are willing to accept a slightly higher price.
Others prioritize maximizing every dollar in savings, even if it means juggling multiple direct relationships. There is no single correct answer, only the one that matches your budget, risk tolerance, and travel style.
The Takeaway
In 2025, Costco Travel remains a powerful tool for finding value, especially on vacation packages and cruises, but it is no longer safe to assume it is always cheaper than booking direct.
The travel market has become more dynamic and fragmented, and pricing advantages now vary widely by destination, date, and product type. For many Costco members, the true benefit lies in Costco’s ability to pair competitive base prices with strong extras such as shop cards, onboard credits, resort credits, and bundled inclusions that reduce the real-world cost of a trip.
Executive Members gain an additional edge through the 2 percent reward on qualifying Costco Travel purchases, which can meaningfully trim the effective cost of large vacations and luxury cruises.
However, travelers who lean heavily on airline or hotel loyalty programs, or who frequently receive targeted offers from providers, may find that booking direct yields better overall value when points, status perks, and flexible policies are all considered.
The smart approach is not to swear allegiance either to Costco Travel or to direct booking, but to use Costco as one of several benchmarks every time you plan a major trip.
By systematically comparing total value, including rewards and perks, you can identify when Costco truly delivers a bargain and when you are better off going straight to the source. Used thoughtfully, Costco Travel is still very much worth a look and can be one of the most reliable ways to stretch a travel budget without sacrificing quality.
FAQ
Q1: Is Costco Travel usually cheaper than booking directly with a hotel or airline?
In many cases Costco Travel offers similar base prices but adds value through shop cards, resort credits, or bundled extras, making the overall package cheaper in real terms. However, it is not always the lowest option, so you should compare against direct prices and factor in any loyalty points or status benefits you would earn by booking directly.
Q2: Do I need an Executive Membership to get the best Costco Travel deals?
No, all Costco members see the same base travel prices. Executive Members, however, earn a 2 percent reward on qualifying Costco Travel purchases and may receive extra perks on some packages, which can lower the effective cost of a trip if you use Costco frequently.
Q3: Are Costco cruise deals better than booking directly with the cruise line?
Often the base fare is the same as the cruise line’s own price, but Costco typically adds a Costco Shop Card or shipboard credit, which makes the total value better than booking direct. You can usually still receive your cruise line loyalty benefits when booking through Costco.
Q4: Has Costco Travel stopped being competitive for rental cars?
Costco Travel can still provide good rental car rates, but recent traveler reports suggest it is no longer consistently the cheapest option. In some markets and dates, booking directly with a rental company or using other online agencies can yield lower prices, so it is wise to compare.
Q5: Do I earn hotel loyalty points and elite-night credits when I book through Costco Travel?
Policies vary by hotel brand. Some major chains treat Costco bookings like other third-party reservations, which may limit points earning and elite credit. If elite status is important to you, always confirm the policy with the hotel and compare the value of status benefits against the perks Costco includes.
Q6: Can I use my 2 percent Executive reward to pay for Costco Travel bookings?
The 2 percent reward is issued as a certificate that you can redeem at a warehouse. You can then use it to purchase a Costco Shop Card, which can be applied to eligible Costco Travel purchases, effectively turning your reward into a discount on future trips.
Q7: Is Costco Travel good for international trips, or mainly for U.S. vacations?
Costco Travel offers packages and cruises for both domestic and international destinations, including Europe, Asia, and global cruise itineraries. However, the strongest values often appear in mainstream vacation spots and on popular cruise routes rather than highly specialized or remote itineraries.
Q8: What happens if I need to change or cancel a trip booked through Costco Travel?
Change and cancellation policies depend on the underlying airline, hotel, cruise line, or tour operator, but you will generally work through Costco Travel as your booking agency. Fees and refund rules are typically similar to booking through a traditional travel agent, so it is important to review terms before confirming.
Q9: Can non-members see Costco Travel prices before joining?
In most cases you need an active Costco membership to access full pricing and to book travel. Occasionally, public promotions highlight example deals, but you will not be able to complete a reservation without a membership number.
Q10: How should I decide when to use Costco Travel and when to book direct?
Use Costco Travel whenever you are considering a package or cruise, and treat it as one of several quotes. Then price the same trip directly with airlines, hotels, or cruise lines, including any loyalty perks. Whichever option delivers the best combination of total cost, rewards, and flexibility for your situation is the one you should choose.