Costco doesn’t just sell cheap hot dogs, rotisserie chicken, and 30-roll boxes of toilet paper to its legions of customers. The big-box retailer also offers vacation packages to destinations around the globe, from 5-star hotels in New York City and Las Vegas to all-inclusive resorts in the Dominican Republic, to cruises in Asia and Australia.
Costco isn’t the only wholesale club offering vacation deals. BJ’s and Sam’s Club also sell travel packages to their members. But should you buy a bundled vacation deal from a warehouse club?
Here is a look at the advantages and disadvantages of purchasing a vacation package from Costco and other wholesale clubs.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Pro: Convenience
Not a fan of planning your own vacations? A wholesale club offers one-stop-shopping for travelers — with just the click of a button, you can purchase a ready-made trip, including hotels, airfare, and rental cars. They can also help you arrange any attractions you want to see. This takes the guesswork out of planning a trip.
“Booking a travel package through a wholesale club can mean cutting down on the endless planning and searching process that a lot of travelers face,” says Katy Nastro, a travel expert at flight deals site Going (formerly Scott's Cheap Flights). “Busybodies who hate the endless searching and just want a selection of options to choose from can find shopping through a wholesale just as satisfying as the in-person store samples.”
Con: A limited selection
Wholesale clubs don’t offer as many options when it comes to hotels, flights, cruises, and rental cars as travel sites like Expedia, Orbitz, Hotels.com and Travelocity, nor can they match the unlimited selection you get when planning a trip yourself.
As a result, “Not every airline, hotel, or car rental company you prefer may be included” when you buy a vacation from a wholesale club, Nastro says. For example, Costco doesn’t offer rental cars through Hertz, and Sam’s Club doesn’t offer flights.
Pro: Savings
Vacation packages from wholesale clubs are often less expensive than booking with hotels, airlines, and rental car companies directly, a Consumer Reports study found.
Some wholesale clubs also offer extra rotating promotions. BJ’s, for instance, currently offers customers a BJ’s gift card of up to a $500 value on qualifying cruises.
Con: Limited travel assistance
Purchasing a vacation package from a wholesale club means you’re cutting out the middleman, but that also means that you must work with the company’s customer service if a problem arises during your trip. That could prove cumbersome if you encounter an issue.
Nastro offered this example: “Say you booked your package through Costco Travel, yet you missed your connecting flight. Instead of working with the airline on this issue, you must work first with Costco Travel, which can sometimes be a pain, especially if the wholesale club travel provider's customer service wait times are lengthy."
Compare that to booking directly through an airline. If something happens, with many airlines like United or Southwest, you can change your flight or take a new one through the airline's app. It cuts down on long wait times and allows you quick contingency plans when surprises arise.
Pro: Better cancellation policies
According to a recent study by Consumer Reports, warehouse clubs may have more lenient cancellation policies and fewer fees for rental vehicles than those offered when booking directly with a car rental company. For example, Costco car rentals have no cancellation fees, including rentals from Enterprise; however, if you were to book a prepaid rental car with Enterprise directly and cancel the reservation more than 24 hours in advance of the scheduled pickup time, the company would charge a $50 cancellation fee.
Con: You need to have a club membership
You need to be a member to take advantage of travel deals from Costco, BJ’s, or Sam’s Club. Membership prices vary by store, with some offering cheaper entry-level memberships and more costly, higher-tier memberships.
That said, you can receive deals that offset some of these initial costs, if you know when to buy one. Places like Costco often offer deals around Black Friday, where you can receive a digital gift card when you sign up.
Along with travel discounts, each of these wholesale retailers offer other savings. All three have exceptional prices on gas and Costco has a solid reputation for low prescription prices. You can also save on travel accessories with your membership:
Bottom line
If you don’t mind having a limited selection of travel options and limited customer service, you might save a significant amount of money on your next vacation and enjoy the convenience of one-stop shopping by purchasing a travel package from a wholesale club.
Related Content
-
Dealmaking Drives HEICO Stock's 100,000% ReturnHEICO has been skillful with mergers and acquisitions over the years and this has resulted in a 100,000% share-price return.
-
Caregiving Is a Stealth Retirement Expense for Women: I Should KnowEldercare takes a toll on everyone, but women's careers tend to suffer more — with dire consequences over the long term.
-
Private Jets Are Within Reach for Wealthy RetireesRealizing an adult fantasy like booking a private jet doesn’t come cheap. But so what?
-
Five Top Insurance Scams to Watch Out ForScammers are always looking to take advantage of unsuspecting people, and insurance issues are prime targets. Here's how to avoid falling victim.
-
TikTok 'Door Knock Challenge': The Risky Viral Trend Putting Homeowners on EdgeThe viral TikTok 'Door Knock Challenge' is more than a prank, it poses serious security risks for homeowners. Learn how to protect your home, prevent property damage and stay safe.
-
What Does Medicare Not Cover? Eight Things You Should KnowHealthy Living on a Budget Medicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
Luxury & Exotic Car Insurance: How to Get the Best Coverage Without OverpayingLearn how to insure a luxury or exotic car without overpaying. Compare rates, maximize discounts, and find the best coverage options for high-end vehicles.
-
Earn A Disney Bundle Discount With The Blue Cash Everyday® CardThe Blue Cash Everyday® Card from American Express offers you cash back rewards on streaming, grocery and dining. Best of all, the card offers no annual fee.
-
Want to Sue a Client for Unpaid Fees? That Can Backfire on YouIn some cases, it'll work out better if you let it go instead of trying to force a deadbeat client, patient or customer to pay your bill.
-
How Financial Institutions Can Blend Tech With Human ConnectionDigital banking is convenient, but sometimes customers need personalized help, not to mention those who aren't tech-savvy. What's a financial institution to do?
