How Costco Vacation Packages Work Step by Step

Costco Travel has become a quiet favorite of value hunters, bundling flights, hotels, rental cars and extras into packages that are often hundreds of dollars cheaper than booking everything separately. Yet for many travelers, the service still feels opaque. Is it like a traditional travel agency, a booking engine, or a warehouse deal aisle in digital form?

Understanding exactly how Costco vacation packages work step by step can help you decide when they are a smart move for your next trip and how to avoid mistakes that erode the value you are chasing. That question is easier to answer once you understand how Costco structures its vacation packages, before walking through the booking steps in detail.

What Costco Travel Is (and What It Is Not)

Costco Travel is the in-house travel agency run by Costco for its members in the United States and a handful of other markets. It sells bundled vacations that typically include a hotel or resort plus at least one additional component such as flights, a rental car, theme park tickets or ground transfers. It also sells cruises, car rentals and some standalone hotel stays, but the package offerings are where many of the deepest savings appear.

Unlike general booking sites, Costco Travel is designed as a curated, value-focused service. You will not see every hotel or cruise line on earth. Instead, Costco negotiates preferred contracts with selected suppliers and uses its buying power to secure extras like resort credits, room upgrades, shipboard credits and Costco Shop Cards that are only available through its channels. On the flip side, this curation means you may not find niche properties, boutique hotels or ultra-low-cost carriers in the mix.

Costco Travel packages function much like traditional tour packages, but they are modular and customizable. You can usually choose your departure city, travel dates, room category, airline and flight times from a menu of options, with pricing recalculated in real time as you adjust. Everything is wrapped into one Costco Travel itinerary number, which is important later when you manage or change the trip.

Membership & Eligibility: What You Need Before You Book

To use Costco Travel, you must be an active Costco member. Both standard Gold Star and higher-tier Executive memberships are eligible, but the level you hold affects how much you can earn back in rewards. As of late 2025, a Gold Star membership typically costs around the mid double digits annually, while Executive membership costs roughly twice as much and includes an annual 2 percent reward on qualified Costco and Costco Travel purchases, subject to caps and exclusions.

When you sign in to Costco Travel online, you use your Costco membership credentials. The system checks that your membership is current and applies any Executive-level benefits automatically, including the ability to earn a 2 percent reward on qualifying travel after the trip is completed.

Only the primary member and an active household cardholder tied to the account will see their Costco Travel purchases contribute toward that annual Executive reward, so it is worth confirming which account is used if multiple family members book travel.

Costco Travel packages are generally available to Costco members residing in the United States, and some offers are specifically restricted to U.S. members. Prices are quoted per person based on double occupancy for most land packages, and some inclusions are contingent on minimum stays or particular room types. Before you fall in love with a headline price, read the fine print beneath the offer to verify eligibility and any residency or age limits, especially for car rentals and theme park tickets.

Finding & Comparing Packages: The Research Phase

The Costco Travel homepage is divided into broad categories: vacation packages, cruises, rental cars, theme parks and specialty vacations. To shop packages, you begin by selecting a destination region such as Hawaii, Mexico, the Caribbean, Europe or a specific brand like Universal Orlando Resort. Within each region, Costco typically showcases a limited set of hotels and resorts that it has contracted with for package pricing and extras.

Each package tile leads to a detailed page that outlines what is included and what is not. You will see the base inclusions such as hotel nights, taxes and resort fees, and any transportation elements like flights or rental cars. For many offers, especially those marketed to Executive members, Costco also highlights added values such as daily breakfast, resort credits, waived parking or a Digital Costco Shop Card that is issued after travel. These added values are central to judging the real worth of a package compared with pricing out the same trip elsewhere.

At this stage, it is worth opening a separate tab and running a quick comparison by searching the same hotel and dates on a major booking engine, then adding in estimated flight and car rental prices.

Even when Costco’s base package savings are modest, the guaranteed extras like credits and Shop Cards can tilt the math firmly in Costco’s favor. Conversely, if you care deeply about a specific airline, hotel chain loyalty points or boutique property not listed through Costco, an a la carte booking elsewhere may be smarter despite losing the bundled discount.

Customizing Your Package: Step-by-Step Booking Flow

Once you click into a specific vacation package, you begin a guided booking process. First, you choose your departure city if flights are part of the package. Costco Travel generally partners with major U.S. carriers, though the exact airlines vary by route.

After you select your dates, the system displays available outbound and return flights, often with several options at different times and price points. The baseline package price usually includes the least expensive flight combination; upgrading to more convenient times or a preferred airline can increase the total package cost.

Next, you choose your room category at the featured hotel or resort. The starting price may cover a standard or garden-view room, with higher nightly rates for oceanview, oceanfront, club level or suite accommodations.

Costco clearly shows how each upgrade changes the overall per-person package cost. In many cases, upgraded rooms also unlock additional Costco Travel perks, such as larger resort credits or higher-value Costco Shop Cards, which may justify the extra outlay.

If the package includes a rental car, you will typically be able to choose vehicle type, such as economy, midsize SUV or minivan, and sometimes the rental company. Costco’s contracts with major car rental firms often include benefits like an additional driver at no charge or reduced fees.

Remember that base rental prices rarely include one-way drop fees, underage driver surcharges, or supplemental insurance. You must budget those separately and confirm age and license requirements before reserving.

Some packages, particularly to major theme parks or island destinations, also allow you to add extras like attraction tickets, airport transfers, travel protection or special tours in the same flow.

The system recalculates your total every time you add or remove a component, and you will see a grand total and deposit due displayed clearly before you proceed to payment. Take a moment here to review cancellation terms, change penalties and deadlines; they vary not only by supplier but sometimes by room type or fare category.

Payments, Deposits & Documents: After You Click “Book”

Costco Travel requires payment with a major credit card, and in the United States this typically means Visa or Mastercard for package and cruise bookings. A deposit is due at the time of booking, with the amount depending on the type of trip. For most land-based packages, Costco collects a per-person deposit along with any required hotel or supplier deposits. If you add airfare, the full cost of the flights is usually due immediately on top of the package deposit, since airlines demand full payment to ticket reservations.

Final payment timing depends on the package type and suppliers involved. For most non-cruise packages, you can expect your remaining balance to be due roughly 45 days prior to departure, although some guided tours or specialty vacations may require earlier final payment.

Cruises follow separate timetables, typically demanding full payment between 90 and 160 days before sailing, depending on the cruise line and itinerary. Missing these deadlines can result in automatic cancellation and loss of some or all of your deposit, so it is wise to set calendar reminders and confirm the specific date on your Costco Travel invoice.

Once your booking is confirmed and the initial payment is processed, Costco issues an invoice that serves as your primary document for most land-only and air-inclusive packages. For many trips, you do not receive physical tickets; your invoice and confirmation numbers for airlines, hotels and rental cars are all you need. For cruises, theme park packages and certain guided tours, you may later receive additional supplier documentation or e-docs through Costco or directly from the cruise or tour operator.

At this point, consider whether you want to add travel insurance. Costco partners with an insurance provider to offer protection plans that can cover trip cancellation, interruption, medical emergencies and baggage issues.

To benefit from pre-existing condition waivers and broader coverage, you often need to purchase the policy within a specific window, such as 21 days from the date you made your first trip payment. These policies are optional but can provide peace of mind, especially for complex or expensive itineraries.

Travel Logistics: IDs, Check-in & On-the-Ground Details

Booking a Costco package does not change the general travel rules imposed by governments and airlines. For air travel within the United States, adult travelers must present acceptable identification at security checkpoints. As of 2025, that generally means a REAL ID compliant driver’s license or another approved form of ID such as a passport. A Costco membership card is not valid as a travel ID, and recent messaging from security agencies has emphasized that distinction to avoid confusion at airports.

For international trips, all standard passport and visa rules apply. Most destinations require that your passport be valid for at least six months beyond your return date, and some countries have vaccination or visa requirements as well.

These obligations are the traveler’s responsibility, not Costco’s, and failure to obtain proper documents can result in denied boarding with little or no refund. Before final payment, double-check entry requirements for your destination and ensure every traveler in your party can meet them in time.

As your departure nears, you will complete airline check-in directly with the carrier, often using the airline record locator listed on your Costco Travel paperwork. The same applies for online check-in at hotels and car rental counters: Costco supplies the confirmation numbers, but you interact with the travel suppliers at the time of travel.

At check-in, be prepared to show the same credit card you used for booking, especially at hotels, to cover incidentals and deposits, and bring your Costco Travel invoice in printed or digital form to resolve any questions about included meals, transfers or credits.

During travel, any extra benefits promised in the Costco package, such as daily breakfast, resort credits or included parking, should appear automatically on your hotel folio. Costco Shop Cards tied to a package are generally issued digitally after you return and cannot be used to pay for the trip itself.

If something promised in your package seems to be missing at check-in, address it immediately with the front desk or customer service, and contact Costco Travel’s support line if the property staff is unfamiliar with the Costco inclusions.

Rewards, Credits & Executive Perks: Maximizing Value

A major appeal of using Costco Travel is stacking multiple forms of value. First, there is the package savings itself: Costco’s negotiated pricing and extras such as resort credits, complimentary breakfasts and waived fees can significantly lower your net cost compared with booking components separately. Second, there are Costco-specific rewards tied to your membership tier and potentially to your payment card.

Executive Members earn an annual 2 percent reward on qualified Costco Travel purchases, calculated after travel is completed and subject to a yearly cap. Not every dollar of your trip may qualify, since taxes, fees, surcharges, optional upgrades and certain third-party add-ons are often excluded. However, for a family vacation costing several thousand dollars, even partial eligibility can produce a meaningful reward that later reduces your regular Costco shopping bills.

If you pay for your package with a co-branded Costco credit card from a major issuer, you may also earn bonus cash back on travel purchases, including those made through Costco Travel. This card-based cash back is separate from the Executive Membership reward and follows its own accrual and redemption rules. Together, the Executive 2 percent reward, credit card cash back and any Costco Shop Card issued as part of the package can add up to a substantial effective rebate on your vacation costs.

Executive Members also have access to a rotating slate of enhanced travel offers, often flagged as Executive Member benefits on Costco Travel’s site. These can include larger Shop Cards, additional resort credits or private check-in areas at certain resorts. While these perks should not be the sole reason to upgrade your membership, they can tip the scales if you already spend heavily at Costco and travel regularly.

Cancellations, Changes & Common Pitfalls

Costco Travel’s terms and conditions are shaped by its suppliers, which means policies can vary widely between packages. In general, you should expect a tiered cancellation schedule where fees escalate as your departure date approaches. Cancel far in advance and you may forfeit only a portion of your deposit; cancel within a certain window and you could lose the full trip cost.

Airfare is often the least flexible component, especially with lower-fare tickets, which may be nonrefundable or changeable only with penalties and fare differences.

Changes to flights, hotel dates or room categories after booking can trigger change fees from airlines, hotels or rental car agencies. Costco acts as an intermediary, but it cannot waive supplier penalties. Some guided vacations and branded packages, particularly those involving complex touring or seasonal events, have stricter terms with nonrefundable deposits or earlier final payment deadlines.

Always read the cancellation and change policies displayed during booking and again on your confirmation, and consider whether a travel protection plan is prudent for your situation.

A frequent pitfall involves misunderstanding what is included in the package price. For example, airport transfers may not be automatic and could require selection during booking. Daily breakfast might apply only to certain room types or be limited to specific restaurants and menu items.

Resort credits usually cannot be applied to room rates or taxes and may have usage minimums or daily caps. Carefully reviewing the offer language can help avoid disappointment and unexpected out-of-pocket costs.

Another recurring issue arises around hotel loyalty benefits. In many cases, stays booked as part of a Costco package are not eligible for hotel loyalty points, elite night credits or status benefits, because they are considered wholesale or contracted rates. If maximizing hotel points and elite perks is your primary goal, you may decide to book directly with the hotel instead, even at a slightly higher cash price, and reserve Costco Travel for trips where those loyalty considerations are less important.

The Takeaway

Costco vacation packages operate much like a modern, member-only tour operator: curated options, bundled pricing and meaningful extras, all delivered through a familiar warehouse brand. The core steps are straightforward.

You confirm your membership, shop destination offers, customize flights and rooms in a guided flow, pay a deposit with a credit card, and then manage travel details with the underlying airlines, hotels and tour operators while Costco sits in the background as your consolidator.

The value proposition shines brightest when you leverage Costco’s buying power and rewards ecosystem. Packages that combine competitive base prices with resort credits, complimentary meals and Costco Shop Cards can deliver savings that are hard to replicate on your own. Executive Members and holders of the store’s co-branded credit card can further amplify those savings through layered rewards and cash back.

Still, Costco Travel is not a one-size-fits-all solution. It is less suited to highly customized itineraries, boutique stays, elite status chasers or travelers who need last-minute flexibility.

The smartest approach is to treat Costco as one of several tools in your trip-planning arsenal: price out your dream vacation there, run a comparison elsewhere, and factor in every perk, reward and restriction. When the math and the inclusions line up, a Costco vacation package can turn a big trip into a better-value, lower-stress experience.

FAQ

Q1: Do I have to be a Costco member to use Costco Travel packages?
Yes. You must have an active Costco membership to browse final pricing and complete a booking through Costco Travel. Both Gold Star and Executive members can use the service, but Executive members earn additional rewards on qualifying travel.

Q2: Can I book a Costco vacation package for someone who is not a member?
Yes. The person paying and booking must be a member, but the actual travelers on the reservation do not all need to hold memberships. You can purchase a package for family or friends, though the booking still runs through the member’s account.

Q3: Are flights always included in Costco vacation packages?
No. Some Costco packages are land-only, covering just the hotel or resort and possibly transfers or tickets. Many offers allow you to add flights from your preferred departure city, but you can also book airfare on your own if that works better for your schedule or loyalty goals.

Q4: Can I earn hotel or airline loyalty points on Costco Travel bookings?
Airline miles and elite credits generally accrue as usual when your flights are ticketed under your frequent flyer number, even if you book them through Costco. Hotel loyalty is more complicated; many properties treat Costco rates as wholesale and do not award points or elite nights, and some may not honor status perks. It varies by brand and property.

Q5: How does the Executive Membership 2 percent reward apply to Costco Travel?
Executive Members earn an annual 2 percent reward on qualifying Costco Travel purchases after travel is completed, up to a yearly cap. Certain charges such as taxes, fees, surcharges and third-party add-ons typically do not qualify. The reward posts to the Executive account and is sent as a certificate near membership renewal time.

Q6: What happens if I need to cancel or change my Costco vacation package?
Cancellation and change policies depend on the suppliers involved. You may lose part or all of your deposit if you cancel, and fees usually rise as your departure date approaches. Airline tickets can be particularly restrictive. All applicable penalties are outlined during booking and on your confirmation, and Costco’s agents can help you understand your options when plans change.

Q7: Is travel insurance required when booking through Costco Travel?
No. Travel insurance is optional, but Costco partners with an insurer to offer protection plans you can add to most reservations. These plans can cover cancellations, trip interruptions, medical emergencies and baggage issues. Buying soon after your initial deposit may unlock broader coverage, especially related to pre-existing conditions.

Q8: When do I receive Costco Shop Cards or resort credits included in a package?
Resort credits are typically applied to your room account at the hotel and can be used during your stay for eligible charges. Costco Shop Cards tied to a package are usually issued digitally after you complete travel and cannot be used to pay for the booking itself. The exact timing and terms are explained in the package details.

Q9: Can I use my Costco membership card as ID when flying for a Costco Travel trip?
No. A Costco membership card is not a valid form of identification for air travel. For U.S. domestic flights, adults generally need a REAL ID compliant driver’s license or a federally accepted alternative such as a passport. For international trips, a valid passport and any required visas are mandatory regardless of where you booked your travel.

Q10: Are Costco vacation packages always cheaper than booking on my own?
Not always. Costco often delivers excellent value, especially when you factor in extras like resort credits, included meals, Shop Cards and membership rewards. However, other channels may sometimes beat Costco on price, particularly for niche properties or when stacking loyalty promotions. The best strategy is to price your trip multiple ways and choose the option that offers the strongest combination of cost, benefits and flexibility for your needs.