Travelers planning a big vacation today face a crowded marketplace of booking options. Among the most prominent are traditional online travel agencies such as Expedia, Booking.com, and Priceline, and a quieter but powerful player with a devoted following: Costco Travel.
For U.S. travelers who already pay for a Costco membership, the question is not simply whether Costco Travel is cheaper, but how it compares in value, flexibility, and service to the big online travel agencies that dominate search results. Those differences are rooted in Costco Travel’s pricing structure, which operates very differently from commission-driven booking platforms.
What Costco Travel Actually Is (And How It Differs From OTAs)
Costco Travel is the members-only travel arm of Costco Wholesale, best known for bulk groceries and warehouse shopping. Instead of operating as a broad marketplace like a typical online travel agency, Costco Travel negotiates a more curated set of packages with hotels, cruise lines, and rental car companies, then sells those deals exclusively to Costco members.
Access to any of these offers requires an active membership, which as of late 2025 starts at around the mid double digits annually for a basic tier and roughly double that for Executive members after a 2024 fee increase.
Online travel agencies, by contrast, are open to anyone and focus on scale and choice. Brands such as Expedia, Orbitz, Travelocity, and Hotels.com are part of large conglomerates that list hundreds of thousands of properties and flight options, pulling from global distribution systems as well as direct partnerships.
Their main business is giving travelers the widest possible selection, often with tools to filter by price, rating, and location. They typically earn revenue through commissions and service fees, not through memberships.
This fundamental structural difference has real consequences for travelers. Costco Travel behaves more like a traditional travel agency that pre-negotiates bundled deals and extras in exchange for volume, whereas OTAs act as massive search engines for individual components.
When you book a Costco package, you are usually buying into a fixed combination of flights, hotel, and sometimes transfers or rental cars. When you use an OTA, you are assembling those components yourself, often with more freedom but less built-in added value.
Membership, Rewards, and True Cost of Using Costco Travel
Any honest comparison between Costco Travel and online travel agencies has to account for membership costs and rewards. To even view Costco Travel prices, you need a paid Costco membership. Basic members pay a relatively modest annual fee, while Executive members pay roughly twice as much.
That higher tier has become more expensive since September 2024, when Costco raised membership prices for the first time in seven years. In return, Executive members earn a 2 percent annual reward on qualified purchases, including Costco Travel bookings, up to a four-figure cap each year.
On top of that standard 2 percent reward, many Executive members also use the co-branded Costco Visa credit card, which can add an additional rebate on eligible travel purchases.
In practical terms, a family who books a 6,000 dollar vacation package through Costco Travel could receive around 120 dollars back from the Executive reward alone, plus further credit card rewards if they put the trip on the Costco card. Over a year of spending, that can offset a significant share of the upgraded membership fee, effectively lowering the barrier to accessing Costco Travel’s deals.
Online travel agencies rarely require membership fees, though some operate loyalty programs that offer points, discounts, or “VIP” benefits to frequent users. You might earn free-night credits after a certain number of stays or receive small discounts once you log in, but those perks tend to be incremental.
They also vary widely between brands and often come with fine print, blackout dates, or requirements to book only certain rate types. Unlike Costco, which ties its travel rewards directly to a membership that also covers in-store shopping, OTA loyalty lives entirely within the travel sphere.
When you factor in Costco’s annual fee, the real question becomes volume. Casual travelers who take one modest trip every year may not generate enough rewards to justify upgrading to an Executive membership for the sake of travel alone, although the membership also covers everyday warehouse purchases.
Frequent travelers, or those who book high-value trips such as cruises or long resort stays, are more likely to see the math work in their favor, especially if they also value Costco’s in-store benefits.
Pricing, Value-Adds, and When Costco Is Actually Cheaper
Price is the main reason many travelers search for “Costco Travel vs Expedia” in the first place. On headline room or cruise fares, Costco Travel is often competitive with, but not universally lower than, online travel agencies or booking direct. What tends to set Costco apart is the package of extras bundled into that price.
Many Costco Travel offers for resorts, cruises, and theme parks include resort credits, room upgrades, or Costco Shop Cards that effectively reduce the net cost of the trip once you factor in those benefits.
For example, Costco’s own Executive Member benefits pages routinely promote packages that come with daily breakfast, resort or cabana credits, waived resort fees, shipboard credits on cruises, or a digital Costco Shop Card delivered after travel.
These inclusions can be worth several hundred dollars for a week-long stay, particularly in high-fee destinations such as Hawaii or the Caribbean, where resort charges can add 40 or 50 dollars per night when booked elsewhere. Such bundled perks are less common through mainstream OTAs, where the lowest price is often a bare-bones, room-only rate with additional charges appearing later in the booking flow.
Independent guides and financial publications note that Costco leverages its wholesale buying power to negotiate lower net rates and then passes much of that saving on to members, often in the form of added value rather than a visibly lower nightly rate.
For cruises, this can mean onboard credits for dining or spa services and sometimes specialty dining packages included at no added cost. Some high-profile Costco Travel cruise sales in the past couple of years have highlighted just how massive those value-adds can be at the luxury end, including five-figure onboard credits and large Costco Shop Cards given to members who booked world cruises through the platform.
Online travel agencies still have advantages in certain types of trips. For budget travelers comparing basic hotels in low-cost destinations, OTAs sometimes show cheaper independent properties or hostels that do not participate in Costco’s curated portfolio.
They also display more aggressive “opaque” or nonrefundable deals that trade flexibility for lower up-front prices. In addition, OTAs often have sophisticated pricing algorithms and flash promotions that can undercut Costco for narrow date ranges or specific room categories.
The smartest strategy for price-conscious travelers is to compare Costco packages against a fully costed version of the same trip on an OTA, including resort fees, transfers, and extras, rather than judging by base rate alone.
Inventory, Flexibility, and Types of Trips Each Platform Serves Best
When it comes to sheer inventory, online travel agencies win decisively. They list everything from small guesthouses to global chains, plus most commercial flights and a wide array of rental car providers.
You can mix and match airlines, book multi-city itineraries, and choose ultra-budget or ultra-luxury options across continents. Solo travelers and backpackers, in particular, often rely on OTAs because these sites surface hostels, homestays, and niche hotels that simply do not exist inside Costco Travel’s universe of curated, mostly midscale-to-upscale offerings.
Costco Travel, on the other hand, is optimized around specific categories: resort vacations, cruises, theme park packages, and mainstream rental cars. Many hotels featured through Costco are four-star or higher, with an emphasis on family-friendly resorts and recognized brands.
Costco’s packages shine in destinations such as Hawaii, Mexico, the Caribbean, and Orlando, where bundling flights, hotels, and cars with extra credits can deliver significantly better value than booking each element separately.
Travelers looking for guided vacations, including some group tours and branded “Kirkland Signature” travel experiences, may also find compelling offers that are not available on OTAs at all.
Flexibility is another dividing line. OTAs usually allow you to book flights, hotels, and cars independently, with multiple fare and cancellation options. You might choose a nonrefundable hotel to save money or pay slightly more for a flexible rate that you can cancel closer to arrival. Costco’s packages sometimes offer less granular control over each component.
Flight choices may be narrower, hotel selections fewer, and some deals are strictly packaged with limited customization, particularly when they are heavily discounted.
The result is a sort of specialization. Costco Travel is often best suited for families, couples, and multi-generational groups who prioritize value and simplicity over highly customized arrangements.
Online travel agencies are better for complex itineraries, niche destinations, one-way or multi-stop trips, and travelers who want total freedom in choosing their airlines, fare classes, and lodging types. Many savvy travelers use both: Costco for big resort or cruise trips where perks are rich, and OTAs for everything from quick city breaks to intricate international routes.
Customer Service, Problem Resolution, and Peace of Mind
Customer service is where Costco Travel has cultivated some of its strongest loyalty. In consumer discussions and traveler forums, members who have booked through Costco frequently highlight the ease of reaching a live agent and the feeling that Costco will stand behind them if something goes wrong.
This aligns with Costco’s broader brand promise of a generous satisfaction guarantee on products and services, extended to its travel arm. While no travel agency can prevent disruptions like storms or airline strikes, having a responsive intermediary can make rebooking and refunds less painful.
Online travel agencies, in contrast, have a mixed reputation for support. Some travelers report smooth resolutions through chat and call centers, but others describe long hold times, agents that simply relay what airlines and hotels tell them, and frustrating disputes when reservations go awry.
Because OTAs sit between the traveler and the provider, they can become an extra layer of complexity during irregular operations, especially if tickets and reservations are issued on restrictive terms. The experience can vary significantly by brand, region, and even the specific call center you reach on a given day.
It is important to note that Costco Travel is not immune to problems. Website glitches, inventory mismatches, and policy disputes do occur, and some customers have complained publicly when advertised prices could not be honored or when packages required manual rebooking at higher rates.
That said, overall sentiment among frequent users often remains notably favorable, with repeat travelers citing consistent delivery of what was promised and, crucially, the ability to talk to a real person with authority to fix issues in a reasonable timeframe.
Peace of mind is difficult to quantify but matters a great deal when a trip represents a sizeable financial and emotional investment. Travelers who value a strong advocate and are willing to trade some flexibility for an elevated level of support often gravitate toward Costco Travel.
Those who are comfortable managing their own changes directly with airlines and hotels, and who prioritize maximum control and choice, may still feel well served by OTAs despite the more transactional feel.
Transparency, Fees, and Fine Print
Hidden fees are one of the most persistent pain points in modern travel booking, from resort fees that do not appear until late in the checkout process to car rental surcharges that double an advertised daily rate.
Costco Travel has made transparency a selling point, generally presenting taxes and fees up front and avoiding separate service charges for booking packages, hotels, or cruises. Many of its deals explicitly call out when resort fees are waived or included in the package price, which makes it easier to compare apples to apples when evaluating total trip cost.
Online travel agencies are required under evolving consumer protection standards to show more complete pricing, but practices still vary. In some cases, resort fees and mandatory charges are only clearly displayed on later screens or tucked into the fine print.
OTA service fees can also appear for certain types of bookings, especially if you call for agent assistance. While many OTAs now offer free 24-hour cancellation on some bookings in line with airline regulations, travelers must pay attention to cancellation windows, fare conditions, and room-type restrictions when chasing the lowest price.
Both Costco Travel and major online travel agencies offer optional trip protection products, which bundle travel insurance with waiver programs that allow for limited changes. Costco’s travel insurance is integrated with its bookings and marketed as a member-focused product with coverage for trip cancellation, medical emergencies, and baggage issues.
OTAs often sell third-party policies from established insurers side by side with their own change-fee waivers. Regardless of booking channel, travelers should read the coverage details carefully, particularly around pre-existing condition exclusions, “cancel for any reason” options, and claim procedures.
The fine print extends to loyalty and rewards as well. While Executive members earn a percentage back on most Costco Travel purchases, not every component may qualify, and taxes or third-party add-ons are commonly excluded. OTA points programs also have exclusions, sometimes awarding no credit on deeply discounted, opaque, or corporate rates.
The safest approach is to view rewards as a bonus, not the primary reason to choose one platform over another, and to base your decision on total cost, flexibility, and the quality of the itinerary itself.
Who Should Choose Costco Travel vs Online Travel Agencies
No single platform is universally better for every traveler; the right choice depends on your travel style, budget, and appetite for complexity. Costco Travel tends to deliver the highest value for certain profiles.
Families planning resort vacations or theme park trips, especially to destinations like Hawaii, Mexico, or Orlando, often benefit from bundled extras such as breakfast, transfers, rental cars with free additional drivers, and resort or onboard credits that are difficult to replicate through separate bookings on OTAs. Couples booking cruises, including premium and luxury lines, may see substantial value in Costco’s shipboard credits and Shop Card offers.
Executive Costco members who already spend heavily at warehouses and online, and who hold the co-branded Visa card, are in a particularly strong position to benefit from Costco Travel.
Because their incremental rewards on travel stack on top of what they already earn on groceries, gas, and household purchases, the effective cost of membership falls each year. For such travelers, booking a few major trips annually through Costco can translate into a meaningful cycle of rebates and extras that would not exist through a standard OTA booking.
On the other hand, independent travelers, digital nomads, and backpackers who prioritize offbeat or ultra-budget accommodations are likely better served by online travel agencies.
Their vast inventory of hotels, hostels, short-term rentals, and boutique properties simply cannot be matched by Costco’s curated list. Travelers building complex, multi-city itineraries across continents, particularly with low-cost carriers or mixed-fare combinations, will also find more options and control via OTAs and airline-direct bookings.
In practice, the most effective strategy is not an either-or choice but a blended one. Use Costco Travel as your first look for high-value, package-friendly trips where add-ons can offset much of the membership cost.
Use online travel agencies as powerful research and booking tools for components Costco does not handle as well: complicated flights, niche destinations, one-night stays, and last-minute deals. Treat each platform as a different tool in your travel planning kit rather than as rivals that must be used exclusively.
The Takeaway
Comparing Costco Travel with online travel agencies reveals two very different philosophies in the same industry. Costco leverages its membership model and bulk-buying power to deliver curated packages with generous extras, backed by a strong brand promise on value and service.
Online travel agencies use scale and technology to surface the widest possible range of options, often at aggressively competitive base prices but with less emphasis on bundled perks and hands-on support.
For American travelers who already shop at Costco, ignoring Costco Travel can mean leaving real money on the table, particularly on cruises, resort vacations, and car rentals. Executive members, in particular, can capture a web of rewards, credits, and waived fees that collectively tilt the economics in Costco’s favor.
Yet OTAs remain indispensable for flexible, à la carte travel, especially in destinations and price bands where Costco simply does not play.
The smartest travelers learn the strengths and blind spots of each platform. They run side-by-side comparisons, looking not just at nightly or per-person rates, but at the full picture: taxes, resort fees, transfers, breakfast, credits, cancellation terms, and support if something goes wrong.
Viewed through that lens, Costco Travel is not a replacement for online travel agencies, but a powerful alternative for specific types of trips. Knowing when to switch between them is one of the most reliable ways to stretch a travel budget without sacrificing comfort or peace of mind.
FAQ
Q1: Do I need a Costco membership to use Costco Travel?
Yes. An active Costco membership is required to view prices and book trips through Costco Travel. Both basic and Executive members can use the service, though Executive members receive additional rewards on eligible travel purchases.
Q2: Is Costco Travel always cheaper than booking through online travel agencies?
No. Costco Travel is often competitive, especially when you include extras like resort credits and Shop Cards, but it is not universally the cheapest option. For some destinations or simple hotel stays, an online travel agency or booking direct may offer a lower base rate.
Q3: What types of trips does Costco Travel do best?
Costco Travel tends to excel at resort vacations, cruises, theme park packages, and mainstream rental cars, particularly in destinations like Hawaii, Mexico, the Caribbean, and Orlando. These trips benefit most from Costco’s bundled extras and negotiated rates.
Q4: How do rewards from Costco Travel compare with OTA loyalty programs?
Executive Costco members earn a percentage back on most Costco Travel purchases, which combines with any rewards from the Costco Visa card. OTA loyalty programs typically offer points or credits toward future stays, but they are separate from any broader retail rewards ecosystem.
Q5: Can I book flights only through Costco Travel, like I can on an OTA?
Costco Travel does offer air-inclusive packages and some options that include flights, but it is not generally designed as a stand-alone flight search engine. Online travel agencies and airline websites are usually better for booking complex or flight-only itineraries.
Q6: How does customer service compare between Costco Travel and OTAs?
Costco Travel is often praised for responsive, human support that reflects Costco’s overall customer service philosophy. Online travel agencies provide support as well, but experiences vary widely, and some travelers report slower response times and more difficulty resolving issues.
Q7: Are there hidden fees when booking through Costco Travel?
Costco Travel emphasizes transparent pricing. Taxes and most mandatory fees are typically included in the quoted price, and many packages explicitly include or waive resort fees. Nevertheless, travelers should still review details to understand what is and is not covered.
Q8: Does Costco Travel work for solo or ultra-budget travelers?
It can, but it is not optimized for the lowest-budget or solo travel market. Many Costco Travel deals are priced for double occupancy at midscale to upscale properties. Online travel agencies usually offer more low-cost and single-occupancy options, including hostels and guesthouses.
Q9: Can I still earn hotel or airline loyalty points when I book through Costco Travel?
Policies vary. Some airlines and hotel chains honor loyalty points and elite benefits on Costco Travel bookings, while others treat them as third-party reservations that do not qualify. If elite status and points are important to you, it is wise to check the rules for the specific brand before booking.
Q10: Should I use Costco Travel or an OTA for my next trip?
The best choice depends on your trip type and priorities. If you are booking a cruise or resort vacation where Costco offers strong package deals and you value extras and support, Costco Travel is likely a strong contender. If you need maximum flexibility, niche accommodations, or complex flights, an online travel agency or direct booking may serve you better. Many travelers compare both for each trip and choose based on total value rather than loyalty to a single platform.