Published 12 June 2024
Costco doesn’t just sell cheap hot dogs, rotisserie chicken, and bulk toilet paper to its many customers. The big-box retailer also offers vacation packages to destinations around the globe, including 5-star hotels in New York City, Las Vegas, all-inclusive resorts in the Dominican Republic, and cruises in Asia and Australia.
However, Costco isn’t the only wholesale club providing vacation deals. BJ’s and Sam’s Club also sell travel packages. But should you consider purchasing a bundled vacation deal from a warehouse club? Here’s a comprehensive look at the advantages and disadvantages associated with this approach.
Pro: Convenience
For those who dislike planning vacations, a wholesale club offers a one-stop shopping experience for travelers. With just a click, you can purchase a ready-made trip that includes hotels, airfare, and rental cars, thereby eliminating the uncertainty of trip planning.
“Booking a travel package through a wholesale club can significantly reduce the extensive planning and searching that travelers often face,” explains Katy Nastro, a travel expert. “Individuals who want a selection of options without the hassle can find shopping through a wholesale just as enjoyable as choosing in-person store samples.”
Con: A Limited Selection
Wholesale clubs often don’t provide as extensive an array of options for hotels, flights, cruises, and rental cars compared to travel sites like Expedia or Kayak. Consequently, “not every airline, hotel, or car rental company you prefer may be included” when purchasing a vacation through a wholesale club. For instance, Costco doesn’t offer rentals through Hertz, and Sam’s Club lacks flight options.
Pro: Savings
Vacation packages purchased from wholesale clubs are frequently more economical than booking through hotels, airlines, or rental car companies directly. A 2021 Consumer Reports study revealed that a Costco package for a four-night stay at the Riu Palace Antillas in Aruba, including flights, priced at $1,454 per person, which represented a 15% saving.
Moreover, some wholesale clubs offer additional rotating promotions that can lead to further savings. For instance, BJ’s is currently offering customers a gift card of up to $500 on qualifying cruises.
Con: Limited Travel Assistance
While purchasing a vacation package from a wholesale club means you might be cutting out the middleman, it also requires you to navigate any customer service issues directly with the club. This can be cumbersome if complications arise during your travels.
Nastro provides a pertinent example: “Imagine you booked your package through Costco Travel but missed your connecting flight. Instead of liaising directly with the airline, you must first contact Costco Travel, which can sometimes be cumbersome, especially if their customer service has long wait times.”
Pro: Better Cancellation Policies
A recent study by Consumer Reports suggested that warehouse clubs may provide more lenient cancellation policies compared to direct bookings with car rental companies. For example, Costco car rentals reportedly incur no cancellation fees, unlike pre-paid rentals from companies like Enterprise, which may charge a fee if canceled too soon.
Con: Membership Required
To access travel deals from wholesalers like Costco, BJ’s, or Sam’s Club, you need to hold a membership. The costs of these memberships can vary, with some offering budget-friendly options and others being more premium.
Bottom Line
If you are comfortable with a limited selection of travel options and can tolerate constrained customer service, purchasing a travel package from a wholesale club might help you save significantly on your next vacation while enjoying the convenience of consolidated planning.
For more insights on vacation planning, consider exploring reputable travel blogs and consumer research sites.
