Costco CASH card cash out

[_auroraborealis_]

I don't think using Costco as agent if you aren't near a Costco or a regular shopper is a great idea, and don't really think it ever was. Too many possible issues.

I mean, I can use a Costco credit without blinking. Just bought 3 sets of snowpants, a new 3-in-1 jacket, and enough hummus to fill a bathtub.

 

[Thumper99]

Well, take that logic and look at it from another perspective. There are plenty of small TAs who are unable to provide the big OBC amounts that other large agencies give. Should Dreams be told to stop giving OBC because it's unfair to the smaller personal TAs who can't afford to do that? Travel agencies are a business. What one TA offers as a "perk" is simply that - what they can afford to give away; another TA may offer something different. That "perk" is a business expense and as long as the business is making a profit they can give something away (whether a gift basket, photo package, OBC, gift card, etc.).

I'm not surprised if Costco has made a more solid rule about cashing out the "Cash Card." Some locations have restricted that all along. And I think social media has lead to many expecting it everywhere.

Enjoy your cruise!

I hear what you are saying but Costco is not offering travel related perks. They are offering store cards. No TA, even DU can offer gift cards to their store so that is why they say it’s unfair trade for the industry. I think what DU and other TAs offer is experience and personal advice which is invaluable and why people go for the TAs. I agree. All I’m saying is that the kickbacks should probably be related to the travel, ie OBC or even a Disney gift card. Can you use your Costco card to by a Disney gift card? I’m only wondering why Costco made the change.

 

[PrincessShmoo]

I hear what you are saying but Costco is not offering travel related perks. They are offering store cards. No TA, even DU can offer gift cards to their store so that is why they say it’s unfair trade for the industry. I think what DU and other TAs offer is experience and personal advice which is invaluable and why people go for the TAs. I agree. All I’m saying is that the kickbacks should probably be related to the travel, ie OBC or even a Disney gift card. Can you use your Costco card to by a Disney gift card? I’m only wondering why Costco made the change.

If a TA offers perks for using them to book travel, it's up to them what the perk is. Some give photo packages, others give onboard credit, or cover other things, like transfers or free drinks packages. Costco giving a cash/gift card is their choice.

If a TA gives OBC (whatever amount) or a cash card, it's still money out of the TA's pocket.

 

[Thumper99]

The question is if it’s a UnFAIR trade for the industry. Costco charges membership. They give heavily discounted rebates to their members when the travel industry said you can’t give discounted cruises out like you do mattresses and gallons of milk. Can all travel agents compete with a corporation who does not have TA booking cruises or travel. They are simply cashing in on booking for you and then doing a rebate program. I’m not saying it’s not a good deal but it’s possibly unfair to the industry is all I’m saying.

 

[lilsonicfan]

I can't see how it's unfair to the industry at all. Costco does get a 16% commission, because their total sales volume is massive, by virtue of the fact that Costco itself is massive and their membership base is huge. Their buying power is massive. DCL doesn't mind at all, that's less marketing that they have to do, less customer service they have to provide, when a TA is involved. If the TA brings in millions in business, but another, smaller TA brings in only thousands, that's how the system works - the more business you bring in, the larger your commission.

The fact that Costco rebates back 8% in what has really almost always been money to spend at Costco (really, the policy has never officially been that the cash cards can be cashed out, some people have just been fortunate) is not any more unfair than Dreams or any other TA offering OBC. I realize smaller TAs can't compete, but that's sort of how the market works. When I book with Costco, I'm giving up something too - I'm signing up for longer hold times (super long) when using a placeholder, I get less personalized service, and I don't get to rely on a TA to book my activities.

Costco doesn't rebate on every cruise, for example on Princess and I believe Carnival they offer onboard credit (and it's a lot less than 8%).

 

[lanejudy]

As far as I know, there is no legal reason a TA can't give a Visa gift card, or airline gift card, or Amazon gift card, etc. Or open a separate division of their business to sell a retail product and offer a gift card to that store -- which is exactly what Costco does. Costco is the most mentioned here on the DIS, but there are many other membership sites or clubs that allow one to earn gift cards or certificates or points or rewards that essentially become discounts on future travel. The fact that Disney doesn't allow discounts on their cruises probably makes these sites less popular for DCL, but still popular for other travel.

People choose a TA for a variety of reasons -- some want the knowledge and expertise, some need the more personal support of a planner who does all the legwork and hands over a final itinerary, some like the incentive they receive from the TA. Some use a TA simply for a discount or OBC (or cash card or gift card). Some use a TA who doesn't offer a "tangible" incentive like OBC or a gift basket or drinks package because they find value in the TA's service. There are many options of perks or incentives and many options of TAs and people choose which best suits their needs or wants.

I guess what I'm trying to say is that I'm not sure the traveler who books through Costco primarily the Cash Card would necessarily choose a TA with a different business model offering OBC or a drinks package. That might be a traveler who opts to make all their own arrangements if they didn't book with Costco. You're putting a lot of focus on the incentive -- make yourself a standout for what you DO offer (broad knowledge of travel, expertise about a specific destination, willingness to be up at midnight to book excursions, or online at 7am for FP+, etc.) Do what you do best and play that up.

 

[Lynne G]

So far, both my Carnival and Royal C's cruises come with costco gift cards. Neither had onboard credit offered for it. Eh, either way, I can spend quite a bit in a Costco store, so fine with me. Plus, I get to use my Costco Visa, so points as cash to use at Costco too.

 

[PsylockeSmythe]

Can you use your Costco card to by a Disney gift card? I’m only wondering why Costco made the change.

Neither of the local Costco's near me carry Disney Gift Cards (I'm not sure if any of the stores do). But I would say if they did, you would be able to buy them, since I've used the gift card to purchase gift cards for other places (restaurants and such).

I'm one of the travelers that won't use a TA. I can go online and book the same cruise for the same price as the TA's. The only difference is some of the larger TA's can/will give some from of OBC or small perk for using them. Most of the TA's out there just don't offer me anything that will make me want to use them over booking myself or using Costco.

The only reason why I'll use Costco for any future cruises is the fact that as an Executive member, I get a 2% rebate and their 8% for booking through them. On my upcoming cruise I would have gotten $90 from the 2% and $360 from the 8% if I was able to book through them with the place holder (I missed the moving of the place holder 30 day window after our last cruise).

Psy

 

[lilsonicfan]

So far, both my Carnival and Royal C's cruises come with costco gift cards. Neither had onboard credit offered for it. Eh, either way, I can spend quite a bit in a Costco store, so fine with me. Plus, I get to use my Costco Visa, so points as cash to use at Costco too.

Ah maybe it's just Princess then! i've booked NCL through Costco and that is also a costco gift card. Princess definitely was just OBC.

 

[Vicki106]

I don't think using Costco as agent if you aren't near a Costco or a regular shopper is a great idea, and don't really think it ever was. Too many possible issues.

I mean, I can use a Costco credit without blinking. Just bought 3 sets of snowpants, a new 3-in-1 jacket, and enough hummus to fill a bathtub.

In the past, I''ve used the Costco card that I received after my Disney Cruise to purchase a set of new tires for my car.

 

[cvjw]

The question is if it’s a UnFAIR trade for the industry. Costco charges membership. They give heavily discounted rebates to their members when the travel industry said you can’t give discounted cruises out like you do mattresses and gallons of milk. Can all travel agents compete with a corporation who does not have TA booking cruises or travel. They are simply cashing in on booking for you and then doing a rebate program. I’m not saying it’s not a good deal but it’s possibly unfair to the industry is all I’m saying.

If the other travel agencies think it is unfair, they can match Costco’s rebates. If they are giving away the same amount of money back as Costco does, it would lead to more people booking with them instead of Costco. That is the way the system works. Saving money is a huge is a huge incentive for customers.

Smaller companies not being able to compete with larger companies is nothing new. See Amazon. So many small business around me are closing their doors because amazon has changed the way people shop. Just the way it is in today’s world.

 

[monkeydawn]

Thanks again for all the input. The way it was discussed (that I had seen) it was as if it were policy to exchange the Cash cards for cash if requested. Particularly when you add in the chage to the SHOP cards and the wording change. In any case, I will try my luck at a couple of stores when traveling and if I get nos I will spend it instead.

I don't think using Costco as agent if you aren't near a Costco or a regular shopper is a great idea, and don't really think it ever was. Too many possible issues.

Costco.com has some pretty great deals too. That's usually a large portion of our spend at Costco so it isnt a horrible idea even of you dont live close to a Costco, especially if you would rather have goods than OBC.

Can you use your Costco card to by a Disney gift card? I’m only wondering why Costco made the change.

Costco does not offer Disney GCs. And, apparently, there has been no change just an enforcement of how it always should have been?

Neither of the local Costco's near me carry Disney Gift Cards (I'm not sure if any of the stores do). But I would say if they did, you would be able to buy them, since I've used the gift card to purchase gift cards for other places (restaurants and such).

Thanks for that info. I always kinda gloss by the GC section, I will take a better look.

In the past, I''ve used the Costco card that I received after my Disney Cruise to purchase a set of new tires for my car.

They just dont offer tires for our cars at a better price than tire rack. I look every time and every time it is much more expensive to go through Costco. But thanks for the suggestion!

 

[SamFaniam]

Personally from a Travel Industry perspective what Costco does is actually unfair trade to the Travel Agencies out there. A travel agency like Dreams Unlimited is able to give out On Board Credit to you for your cruise and they are able to do it best because they have a large customer base (and therefore making a good commission) Its a win for you and the TA! But Costco says they'll give you money back (in cash in previously if you knew to cash it out, or in store credit). TA's can't do that as they don't have a store. Many TA's lose bookings to Costco for this reason and personally I don't think its fair to the TA trying to make a living. I think if Costco wants to give you cash for your booking they should be made to give you OBC and not give you money for you to shop at their store. I'm sure this won't be popular opinion because we all want to get the most kickback for spending a lot of money but it still give Costco an unfair trade advantage and I think I read somewhere that the TA industry is upset by it. They should give you credit towards OBC or another cruise I suppose as its possible a TA could give that out? Not sure what the rules are about that in the industry. Does anyone know if the TA's at Costco actually get a cut of their commission. Lets say Costco gets 16% commission on a booking. They give you back 8% but are they paying the actual TA's answering your phone call commission or do they work for a salary. Just curious.

Costco does not give a cash card for their store for all cruses. We took a cruise with Holland America, and received a shipboard credit.

 

[Thumper99]

I had read somewhere that the vendors (Cruise lines) can allow what they want and some felt the rebate program was not fair. I’m perfectly fine with Costco giving OBC but would they give the same percentage if required to do so from Disney. Aurora made the point that the blame lies with Disney for allowing that and it is interesting that other lines don’t all allow the rebate in Costco money.

Do you mind telling us how much OBC you got from holland? Do you have a percentage? Was it up to the 8% cash rebate? ( I understand that as executive member we can essentially earn another 2% in membership bonus) but I’m actually asking what was in your HAL OBC account. I think if Costco had to do that it would be more fair and while they’ll still get a large customer base at least DU or other TAs are able to try to offer similar benefits. Otherwise it seems that Costco is giving backdoor discounts on the cruises. This is just my opinion and I’m not affected by it but it’s interesting to me that it’s different for other lines.

 

[_auroraborealis_]

Any line can dictate terms and conditions.

Heck, most vendors can. This is why you don't see iPads or MacBooks at discounts, and there's usually some form of store perk given for the "big sales!!!!" on those. But you're not going to get a variance on price, save $5-10 at most. If as a retailer you try, Apple will enforce MAP on you (pricing) or revoke your supply chain.

Cruises just don't come in a box, but similar rules apply. Disney can set contractual limits on store rebates, OBC or other spiffs for booking.

 

[lilsonicfan]

I'm not the one who booked with HAL, but I booked a Princess cruise through Costco and the OBC amounted to about 5% of the cruise price before taxes.

I can't understand why you think it would be fair that Costco should have to rebate up to 8% on every cruise line in the form of OBC. Many lines offer discounts or allow TAs to discount, DCL does not. We don't even know that Costco's commission is 16% on every single cruise. Many lines discount their own cruises, or offer OBC or other perks with bookings - again, DCL does not, with the exception of certain discounts on certain (poorly selling) cruises.

I am sure if DCL doesn't like the situation, they can make changes, but really, Costco's 'backdoor discount' isn't one, because they are forcing everyone to use that rebate at their stores. For me, that translates into real money because I would have spent that money at Costco anyway. For others, it's not as much of a value. For some, maybe that will entice them to spend more at Costco than they might have without the cash card. Either way, Costco wins, and so does DCL.

 

[SamFaniam]

On HAL the regular onboard credit was just under 6%, But, we got an additional 2% for booking a room in a certain category, and also received free gratuities and a complimentary dinner at the steak restaurant. So that probably works out to more than 8%

 

[Thumper99]

I'm not the one who booked with HAL, but I booked a Princess cruise through Costco and the OBC amounted to about 5% of the cruise price before taxes.

I can't understand why you think it would be fair that Costco should have to rebate up to 8% on every cruise line in the form of OBC. Many lines offer discounts or allow TAs to discount, DCL does not. We don't even know that Costco's commission is 16% on every single cruise. Many lines discount their own cruises, or offer OBC or other perks with bookings - again, DCL does not, with the exception of certain discounts on certain (poorly selling) cruises.

I am sure if DCL doesn't like the situation, they can make changes, but really, Costco's 'backdoor discount' isn't one, because they are forcing everyone to use that rebate at their stores. For me, that translates into real money because I would have spent that money at Costco anyway. For others, it's not as much of a value. For some, maybe that will entice them to spend more at Costco than they might have without the cash card. Either way, Costco wins, and so does DCL.

Lol. I know Disney Wins!! They always do! It’s the other TAs in the Industry that loses. That is probably why certain lines don’t allow Costco to “discount “ the cruise with a backdoor rebate. They understand that that allows Costco to undersell the other agencies. And yes Costco gets the 16% top commission I’m sure because if volume. I guess it’s even possible Disney could pay them more if they want. Im sure there has been push back about it from the other agencies so I was thinking this is one of the reasons for the harder line on making people spend in the store. You yourself said this is money in your pocket because you would have spent that money at Costco so you are getting the cruise cost, at least in actual dollar cost to you as a discount. Please understand I don’t blame anyone for taking advantage of it, I’m just looking at the bigger picture of how Costco is impacting the other agencies. I don’t believe that there are that many huge agencies that can give half their commission back to the customer on every trip they book. They have to actually pay their agents commission right? Doesn’t sound like Costco does. Although I know they have people working in the travel department.

 

[Thumper99]

On HAL the regular onboard credit was just under 6%, But, we got an additional 2% for booking a room in a certain category, and also received free gratuities and a complimentary dinner at the steak restaurant. So that probably works out to more than 8%

I know they can book any option thar Holland is giving so I would think the free stuff came from HAL and the extra OBC was from Costco so that’s a good chunk. I don’t think DU gives back that much but as I’ve said before you get better expertise from them so it’s not always about just numbers. Does Costco offer group cruises? You know where a agency books a lot of rooms and then has incentives like extra OBC? I’ve only booked car rentals from them. They don’t give rebates on them

 

[hrhdhd]

If I cruise a line for which Costco offers OBC rather than the gift card, I can get the OBC refunded at the end of the cruise if I don't use it.