Costco has long been famous for bulk sales.
The warehouse club offers a limited selection, and its members often get the best deals by buying in bulk. That can make sense when it comes to household items, certain non-perishable grocery items, and various beverages.
If you can buy coffee pods, for example, in a 200-pack, and that cuts the cost from $.50 per pod to $.25, that's a huge saving (assuming you use them). Costco members join in order to save money, and that includes some savings in unexpected areas.
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Costco has a travel desk that sells discounted trips. In most cases, the warehouse club offers bundles. You might get airfare, hotel, a rental car, and theme park tickets all for a price that's lower than if you booked each separately.
You have to be very careful when it comes to buying travel with Costco, and it's important to check the change and/or cancellation policies (as there often isn't one).
Costco CFO Gary Millerchip talked about Costco Travel during his company's first-quarter earnings call.
"We offer a wide range of vacation packages, car rentals, cruises, hotels, flights, and other travel-related services. And, in addition to highly attractive rates, many of our offerings include a Costco shop card as extra value for booking with Costco," he said. "...Last year, we sold enough rental cars to fill every U.S. Costco parking spot 8.5 times."
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Cruises are also a big part of Costco's travel business
When Costco members book a cruise through the warehouse club, they can also get bonuses like Costco gift cards. Millerchip shared that Costco Travel made one massive cruise sale last year, and then the buyer got an incredible based on the added perks.
"We also offer great value to members on cruises, and our largest cruise booking last year was a 150-day around-the-world cruise starting from Fort Lauderdale and making stops in places like the Galapagos and Easter Island. The total price was $293,000 for two in the Owner's Suite cabin, and added values on the booking included a shipboard credit of $13,000 and a Costco shop card worth $25,000," he shared.
Millerchip did not share which cruise line's World Cruise was booked.
"Members who use Costco Travel spend approximately twice as much as members that do not use these services," he added.
Costco has an incredibly devoted membership base. In Q1, the chain's US and Canada renewal rate was 92.8% despite the warehouse club raising its membership fees.
"As we mentioned on the last quarterly earnings call, our renewal rates are seeing some impact from higher growth in digital sign-ups, which renew at a slightly lower rate than our base as a whole. Underlying renewal rates and membership growth remain strong, but this mix shift is likely to have a continued effect on our published renewal rate for the remainder of 2025," the CFO said.
Costco ended Q1 with 77.4 million paid household members, up 7.6% versus last year, and 138.8 million cardholders, up 7.2% year over year.
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Costco offers bonuses for all cruisers
As noted earlier, it's very important to look at all the fine print when booking a cruise through Carnival. In many cases, your reservations cannot be changed or canceled once booked.
It's also worth noting that Costco is not a traditional travel agent (TA). The warehouse club will sell you a cruise, but it won't provide the hands-on service that a good TA will provide after you book. That can be very valuable if your flight gets canceled or something else goes wrong.
ALSO READ: Top travel agents share how to get the best price on your cruise
With that warning, Costco does offer a bonus for every cruise it sells.
"We’re proud to offer our members a Digital Costco Shop Card with every sailing. Plus, look for Kirkland Signature and Buyer's Choice sailings for exclusive events and amenities," the company shared on its Costco Travel website.
Costco sells cruises from Azamara Cruises, Carnival, Celebrity Cruises, Cunard, Disney Cruise Line, Holland America Cruise Line, Norwegian Cruise Line, Princess Cruises, Regent Seven Seas, Royal Caribbean, and Uniworld Boutique River Cruises.
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