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I was excited when the email landed: Costco, which makes nearly as much money on memberships as it does on retail margins, was offering travel packages online.
The excitement was short-lived, as I discovered that, for travel at least, Costco Wholesale uses the most liberal definition of “wholesale” available.
We’re looking to return to Los Cabos, Mexico, so I entered our preferred dates. I almost fell off my chair when the results were returned.
The least expensive week, all-inclusive, was $3,690 at Secrets Puerto Los Cabos. The Grand Fiesta Americana was next at $3,695 and the Paradisus was $4,007.92. Per traveller.
There were more options, but those weren’t available on a competitor’s site and they were even more expensive.
By comparison, on WestJet, the least expensive all-inclusive option is Krystal Grand Los Cabos at $1,988. Posada Real Los Cabos, where we went earlier this year, is $2,068.
On an apples-to-apples basis, on WestJet, Secrets is $3,568, Grand Fiesta Americana is $2,798 and Paradisus is $3,488.
Snorkelling near Pelican Rock, off the coast of Cabo San Lucas. (Sandy Taylor / Free Press)
Considering Costco Wholesale was, respectively, $122, $897 and $519 more expensive than WestJet, where, exactly, does the wholesale part come in?
Now, if you’re a frequent Costco shopper, the answer may be in the digital gift cards offered with each package: $452 at Secrets, $351 at Fiesta Grand Americana and $534 at Paradisus.
That may explain Secrets and Paradisus but doesn’t come close on Grand Fiesta. Nor does it help that the least expensive Costco option is $1,702 more than the least expensive WestJet option.
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Granted, some people are willing to pay more for premium properties: often, the food is better, the drinks are better and the amenities are better. I don’t begrudge anyone their choices.
But who really wants to pay $897 more, per person, for the exact same package?
To me, if the margaritas, food and pool are fine, I don’t need 300-count linens crafted from European long-staple flax. Looks like we’re going to try the Krystal this year.
Here’s my request for travel companies: give us an option to enter dates and a number of locales available on those dates. Currently, if you’re not overly concerned with a specific locale, you have to search individually all the various locales you might like.
Note: I’m on vacation. I wrote this newsletter before leaving. I’ll be back in your inbox on Aug. 10.
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