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Costco Travel: How Members Save $500+ on Vacations (2025 Guide)
July 1, 2025
Planning a vacation shouldn't mean emptying your savings account. Yet millions of travelers overpay for flights, hotels, and rental cars simply because they don't know where to look for better deals. If you're a Costco member (or considering becoming one), you're sitting on one of travel's best-kept secrets.
Costco Travel isn't just another booking platform—it's a members-only portal that leverages the warehouse giant's buying power to negotiate deals that typically save travelers $500 to $1,000+ per trip. But here's what most people miss: combining Costco Travel with the right credit cards can double your savings through strategic rewards earning and hidden perks.
This guide breaks down exactly how to maximize every dollar you spend on travel through Costco, including which credit cards earn you the most back on bookings and how to unlock benefits you're already paying for but likely not using.
What Is Costco Travel and How Does It Actually Work?
Costco Travel is Costco Wholesale's dedicated travel booking division, available exclusively to Costco members. Unlike traditional travel booking sites that make money from advertising and high commissions, Costco Travel operates on a straightforward model: use the company's massive purchasing power to negotiate bulk discounts, then pass those savings directly to members.
Here's what you can book through Costco Travel:
- Vacation packages (flights + hotels bundled)
- Cruises with major cruise lines
- Rental cars from top agencies
- Hotel-only bookings
- Theme park packages (Disney, Universal)
- Kirkland Signature curated experiences
The catch? You need an active Costco membership. There are two tiers:
- Gold Star Membership: $65/year - Basic access to Costco Travel
- Executive Membership: $130/year - Earns 2% cash back on eligible travel purchases
Should You Upgrade to Executive for Travel?
Let's do the math. The Executive membership costs $65 more per year than Gold Star, but you earn cash back on Costco Travel bookings (up to $1,250 in annual rewards).
Break-even calculation:
- You need to spend $3,250 on Costco Travel annually to recover the upgrade cost
- That's roughly one $3,000 vacation package per year
- Or two $1,600 trips
- Result: If you book even one significant vacation through Costco Travel annually, the Executive membership pays for itself
Real example: A family books an 8-night Hawaii package for $6,500 through Costco Travel with Executive membership. They earn $130 back (2% of $6,500), already exceeding the $65 upgrade cost and netting $65 in profit—before counting any credit card rewards.
The Best Credit Cards for Maximizing Costco Travel Rewards
Here's where strategic credit card use turns good deals into exceptional ones. While Costco Travel already offers competitive pricing, pairing your bookings with the right card adds another layer of savings through rewards, statement credits, and travel protections.
1. Costco Anywhere Visa® Card by Citi – The Natural Pairing
Best for: Costco members who want seamless rewards integration
This is Costco's co-branded card, and while it's not specifically a travel card, it offers compelling benefits for Costco Travel bookings:
[[ SINGLE_CARD * {"id": "751", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Costco Members and Shoppers", "headerHint": "Generous Rewards"} ]]
2. Chase Sapphire Preferred® Card – For Transfer Partner Flexibility
Best for: Travelers who value point transferability and comprehensive travel benefits
While you can't pay Costco Travel directly with Chase points, this card shines when you need flights outside of package deals or want premium redemption value.
[[ SINGLE_CARD * {"id": "509", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Exceptional Travel Value"} ]]
Strategic use case: Book your Costco Travel hotel package, but use Chase Sapphire Preferred for additional excursions, restaurant meals, and activities at your destination to maximize category bonuses.
3. Capital One Venture Rewards Credit Card – Simple, Flexible Travel Earning
Best for: Travelers who want uncomplicated rewards and statement credit flexibility
[[ SINGLE_CARD * {"id": "438", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "High Travel Rewards" } ]]
4. American Express Platinum Card® (See Rates & Fees) – Premium Perks for Frequent Travelers
Best for: Travelers who take multiple trips annually and can leverage premium benefits
While the annual fee is steep, the card's credits and benefits can offset costs significantly if you travel regularly.
[[ SINGLE_CARD * {"id": "106", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Serious Points on Flights"} ]]
Strategic pairing: Use Costco Travel for package deals, then use Amex Platinum's airline credits and hotel programs for upgrades and add-ons.
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
5. Bilt Mastercard® (See Rates & Fees) – Rent Payments Meet Travel Rewards
Best for: Renters who want to convert housing costs into travel rewards
[[ SINGLE_CARD * {"id": "2990", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Renters", "headerHint" : "Rewards on Rent Payments" } ]]
How to Actually Save $500+ on Costco Travel: The Step-by-Step Strategy
Most travelers make the mistake of thinking Costco Travel's listed prices are the final savings. That's just the starting point. Here's the full optimization strategy:
Step 1: Bundle Strategically
Costco Travel's packages bundle flights, hotels, and often rental cars. This bundling typically saves 15-30% versus booking components separately.
Example breakdown:
- Individual booking: Flight ($450) + Hotel ($1,200 for 6 nights) + Rental car ($300) = $1,950
- Costco Travel package: $1,599
- Immediate savings: $351
Step 2: Stack Your Membership Rewards
Executive members earn 2% back on the taxable portion of travel purchases.
On that $1,599 package, assuming $1,400 is taxable:
- 2% Executive reward: $28
Step 3: Layer Credit Card Rewards
Using the Costco Anywhere Visa Card at 3% cash back:
- 3% on $1,599: $48
Step 4: Claim Package Inclusions
Many Costco Travel packages include extras others charge for:
- Resort credits: $50-$200
- Free breakfast: $20/day × 6 days = $120
- Airport transfers: $60 roundtrip
- Room upgrades: Value $40/night × 6 = $240
Total value of inclusions: $410-$620
Step 5: Leverage Credit Card Travel Benefits
Your credit card likely includes benefits that save additional money:
- Travel insurance (trip cancellation/interruption): $50-$100 value
- Rental car insurance: $15/day × 6 days = $90
- Purchase protection
- Extended warranty on travel gear
Total accumulated savings on this $1,599 package:
- Bundle discount: $351
- Executive rewards: $28
- Credit card cash back: $48
- Package inclusions: ~$500 (conservative estimate)
- Travel protections: ~$140
Total value: $1,067 in savings and benefits on a $1,599 booking
That's a 67% effective discount when you account for all the stacking opportunities most travelers miss.
Costco Travel vs. Expedia, Priceline, and Direct Booking: The Real Comparison
Let's cut through the marketing and compare what you actually pay—and get—across platforms.
Costco Travel Advantages:
What they do better:
- Bundle discounts that beat piecemeal booking
- Exclusive perks (resort credits, breakfast, upgrades) included in base price
- Executive member rewards on top of discounts
- No booking fees (many OTAs charge $10-30 per booking)
- Straightforward pricing with taxes clearly disclosed
Real-world test: We compared a 7-night Cancun all-inclusive resort package for two adults:
- Expedia: $2,847 (flight + resort, no extras)
- Priceline: $2,799 (flight + resort, express deal)
- Costco Travel: $2,649 + $200 resort credit + airport transfers
- Effective Costco price: $2,449
- Savings vs. competitors: $350-$400
When Other Platforms Win:
Costco Travel limitations:
- Fewer international destinations than specialized travel sites
- Can't book flights separately (must be part of package)
- Limited last-minute deals (Costco focuses on advance bookings)
- No dynamic pricing like Hopper or Google Flights
When to use competitors instead:
- Booking flights only with frequent flyer miles
- Ultra-last-minute travel (within 48 hours)
- Obscure international destinations
- When you're targeting specific loyalty program benefits
The Hybrid Strategy:
Smart travelers use Costco Travel for vacation packages and cruises, but supplement with:
- Google Flights for price tracking and alternative dates
- Hotel loyalty programs for status benefits
- Rental car apps for last-minute deals
- Kudos browser extension to automatically select the best rewards card at checkout for supplemental bookings
The Hidden Costco Travel Benefits Most Members Never Use
Beyond advertised discounts, Costco Travel includes perks that many members forfeit simply by not knowing they exist:
1. Costco Shop Cards with Select Bookings
Certain packages include Costco Shop Cards (essentially gift cards) as part of the booking.
Common amounts:
- Domestic packages: $50-$150 Shop Card
- International packages: $100-$300 Shop Card
- High-tier cruise bookings: $500+ Shop Card
The math: Book a $4,500 cruise and receive a $500 Costco Shop Card. That's an immediate 11% return before any credit card rewards or Executive member benefits.
2. Flexible Cancellation on Most Packages
Unlike many OTA restrictions, most Costco Travel bookings offer:
- Free cancellation up to 45-60 days before departure
- Flexible date changes (some modification fees may apply)
- Full refunds processed to original payment method
This flexibility has real value—it's the equivalent of trip cancellation insurance many sites charge $50-$150 for.
3. Price Match Protection (Limited Time)
If you find a lower price for the same package within 30 days of booking, Costco Travel will match it. This policy eliminates the risk of "booking too early" and missing a better deal.
4. Dedicated Customer Service
Costco Travel operates its own customer service team (not outsourced), with:
- U.S.-based representatives
- Direct phone access (not just chatbots)
- Authority to resolve issues immediately
Real value: When travel disruptions happen—weather delays, hotel overbooking, rental car issues—having a responsive customer service team can save hundreds in rebooking fees and stress.
5. Automatic Travel Protection Layers
When you book Costco Travel with certain credit cards, you stack multiple protection layers:
- Costco Travel's flexible cancellation policies
- Credit card travel insurance (trip cancellation/interruption)
- Credit card rental car coverage
- Credit card purchase protection
This redundancy means you're covered from multiple angles—far better protection than most direct bookings offer.
Rental Cars & Cruises: Where Costco Travel Delivers Exceptional Value
While vacation packages get the most attention, two categories where Costco Travel consistently outperforms competitors are rental cars and cruises.
Rental Cars: The Underrated Savings Opportunity
Costco Travel partners with Alamo, Avis, Budget, and Enterprise—and consistently beats their direct pricing by 20-40%.
What makes Costco rental cars different:
- Free additional driver (saves $10-15/day)
- No cancellation fees
- Young driver fees waived for renters 21-24 (saves $25/day)
- Full insurance options at discounted rates
Real comparison for a 7-day rental in Miami:
- Enterprise direct: $487
- Costco Travel/Enterprise: $349
- Savings: $138
Pro tip: Always compare Costco Travel rental rates even if you've already booked your flight and hotel elsewhere. The rental car alone can justify checking Costco Travel.
Cruises: Where the Perks Add Up Fast
Costco Travel works with 12 major cruise lines and typically includes bonus perks that mainstream booking doesn't:
Standard Costco cruise inclusions:
- Onboard credits: $50-$500 per cabin
- Free room upgrades (when available)
- Complimentary wine/champagne
- Shore excursion credits
- Costco Shop Card after cruise completion
Example: 7-night Caribbean cruise on Royal Caribbean
- Cruise line direct: $1,899/person
- Costco Travel: $1,849/person + $300 onboard credit + $100 Shop Card
- Effective savings: $450 for two people
Plus Executive member benefit: 2% back on the $3,698 cruise = $74
Plus credit card rewards (3% with Costco Visa): $111
Total value for this cruise booking: $635 compared to booking direct.
Kirkland Signature Travel Packages: The Premium Tier
Costco's private-label brand extends to travel with Kirkland Signature packages—curated experiences that bundle premium accommodations, exclusive access, and enhanced perks.
What makes Kirkland Signature packages different:
- Hand-selected properties (typically 4-5 star resorts)
- Additional amenities (room upgrades, spa credits, private transfers)
- Often include guided experiences or excursions
- Quality guarantee backed by Costco's satisfaction policy
Typical Kirkland Signature destinations:
- All-inclusive resorts in Mexico and Caribbean
- European river cruises
- Hawaii luxury properties
- Theme park VIP experiences
Price positioning: Kirkland Signature packages cost 10-20% more than standard Costco Travel packages, but include 30-50% more perks and amenities. If you're planning a special occasion trip, these curated experiences deliver outsized value.
Should you book Kirkland Signature?
- Yes, if: You're celebrating an anniversary, honeymoon, or milestone trip where experience matters more than price
- No, if: You're a budget-conscious traveler prioritizing low cost over premium amenities
Who Should Use Costco Travel? The Decision Matrix
Costco Travel isn't the perfect solution for everyone. Here's an honest assessment of when it makes sense—and when it doesn't.
Costco Travel is excellent for you if:
✅ You're already a Costco member – No additional cost to access the platform
✅ You prefer package deals – Bundling flights, hotels, and cars simplifies planning and maximizes savings
✅ You book 3-6 months in advance – Costco Travel's inventory and best deals favor advance planning
✅ You travel to popular destinations – Hawaii, Mexico, Caribbean, Disney parks, Alaska cruises
✅ You value flexibility – Generous cancellation policies reduce risk
✅ You're traveling with family – Package deals for 3-4 people generate significant savings
Consider alternatives if:
❌ You're not a Costco member – The annual fee needs to be factored into your calculations
❌ You need last-minute bookings – Costco Travel focuses on advance inventory, not flash sales
❌ You prefer ultra-budget travel – If you're backpacking or using hostels, Costco's hotel-focused packages won't fit
❌ You're chasing airline status – Costco packages don't always credit full mileage to airline loyalty programs
❌ You want maximum destination diversity – Specialized travel agencies cover more obscure destinations
5 Costly Mistakes Most Costco Travel Users Make
Mistake #1: Not Comparing Package Components Separately
The error: Assuming the bundled price is automatically cheaper than booking separately.
The fix: Before clicking "book," spend 10 minutes checking:
- Flight prices on Google Flights
- Hotel prices on the hotel's direct website
- Rental car rates on Autoslash.com
Sometimes (about 15% of the time), you can beat the package price by booking components individually—especially during promotional periods.
Mistake #2: Ignoring Credit Card Travel Benefits
The error: Booking Costco Travel with a debit card or low-reward credit card.
The cost: Missing out on 2-5% cash back, travel insurance, rental car coverage, and other protections.
The fix: Always book with a high-reward travel or cash-back credit card, and verify your benefits before traveling. Use Kudos to automatically recommend which card maximizes rewards for each purchase.
Mistake #3: Forgetting to Use Package Credits and Benefits
The error: Receiving a $200 resort credit but never redeeming it during your stay.
The cost: Losing $200 in value you already paid for.
The fix: Screenshot all package inclusions before your trip, and add reminders to your phone to use credits for spa services, dining, or activities.
Mistake #4: Not Upgrading to Executive Membership for Travel
The error: Keeping Gold Star membership when you book travel through Costco.
The cost: Missing 2% rewards on all travel purchases.
The fix: If you book one vacation package of $3,250 or more annually, the Executive upgrade pays for itself. Anything beyond that is pure profit.
Mistake #5: Overlooking Rental Car Deals
The error: Booking flights and hotels through Costco Travel but renting a car elsewhere.
The cost: Missing 20-40% savings and free additional driver perks.
The fix: Always check Costco Travel for rental cars, even if you've booked the rest of your trip elsewhere. The savings on rentals often exceed hotel or flight discounts.
FAQ: Your Costco Travel Questions Answered
Do you need Executive membership to book Costco Travel?
No, any Costco membership (Gold Star or Executive) grants access to Costco Travel. However, Executive members earn an additional 2% reward on eligible travel purchases, which can make the upgraded membership worthwhile if you book travel annually.
Can you use Costco Travel without flying?
Yes. Costco Travel offers hotel-only bookings, rental cars, and cruises that don't require flights. These can be excellent deals even if you're driving to your destination or booking flights separately with miles.
Does Costco Travel have hidden fees?
No. Costco Travel includes all mandatory taxes and fees in the quoted price. There are no booking fees or surprise charges at checkout—a significant advantage over many online travel agencies that add fees during payment processing.
Can you modify or cancel Costco Travel bookings?
Most Costco Travel bookings allow free cancellations up to 45-60 days before departure, with some flexibility for date changes (modification fees may apply). Specific policies vary by package, so always review cancellation terms before booking.
Does Costco Travel price match?
Yes, Costco Travel offers a limited price match guarantee. If you find a lower price for an identical package within 30 days of booking, Costco will match the price. Contact customer service with documentation of the lower price.
Do Costco Travel packages include travel insurance?
No, travel insurance is not automatically included. However, Costco Travel offers optional travel insurance at competitive rates during checkout. Additionally, many credit cards provide trip cancellation/interruption insurance when you use them to book travel.
Can you earn airline miles on Costco Travel flights?
It depends. Flights booked through Costco Travel packages typically do credit to airline loyalty programs, but you may not earn the full mileage you would by booking directly. Always add your frequent flyer number when checking in, and confirm mileage accrual with the airline.
Does Costco Travel work for international destinations?
Yes, but with limitations. Costco Travel offers international packages to popular destinations like Europe, Asia, and South America, but the selection is more limited than domestic options. For obscure international locations, specialized travel agencies may have better inventory.
Bottom Line: Is Costco Travel Worth It?
If you're already a Costco member and you travel at least once per year to popular domestic or international destinations, Costco Travel is one of the most underutilized tools in your savings arsenal.
The real value equation:
- Average savings: $500-$1,000 per major vacation
- Executive membership rewards: 2% back (up to $1,250 annually)
- Credit card rewards: Additional 2-5% back
- Hidden perks: Resort credits, upgrades, and protections worth $200-$500
- Time saved: Everything booked in one place with reliable customer service
The opportunity cost of not using it: If you book two vacations per year costing $3,000 each without using Costco Travel's discounts and reward stacking, you're potentially leaving $1,000-$2,000+ on the table annually.
The action steps:
- If you don't have a Costco membership, calculate whether your annual travel spending justifies the $65-130 cost
- Apply for a high-reward travel credit card (or optimize the one you have)
- Set up Kudos to track and maximize your credit card rewards automatically
- Compare Costco Travel prices against your usual booking method for your next trip
- Start small—test Costco Travel with a rental car booking before committing to a full package
The travelers winning at Costco Travel aren't relying on advertised discounts alone—they're stacking membership rewards, credit card benefits, package inclusions, and travel protections into a comprehensive savings system.
Your vacation budget doesn't have to be an all-or-nothing choice between dream destinations and financial responsibility. With the right strategy, you can have both.
Unlock your extra benefits when you become a Kudos member
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Join over 400,000 members simplifying their finances
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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