Costco has long been known for its generous perks, from bulk savings to cash-back rewards. But in 2025, the warehouse giant quietly rolled out an exclusive new benefit available only to Executive Members—and it’s already making loyal shoppers upgrade. While the new perk isn’t splashed across banners or commercials, it offers major value for households that use Costco for more than groceries. Here’s what the hidden benefit is, how it works, and why only top-tier members can access it.
1. Executive Members Now Get Expanded Travel Rebates
According to Costco Travel, Executive Members now earn an additional 3% back on eligible travel bookings—including hotels, rental cars, and select vacation packages. That’s on top of the standard 2% annual reward for purchases, meaning travelers can effectively earn up to 5% total back on certain trips. The benefit applies automatically when booking through Costco’s travel portal; no registration is required. For frequent travelers, this new rebate could translate into hundreds of dollars in annual value.
2. The Perk Isn’t Advertised in Stores
Costco hasn’t widely publicized this update, leading many members to overlook it. Costco tends to “soft-launch” exclusive perks to avoid confusing basic members or overwhelming customer service. The new travel reward quietly appeared in early 2025 updates to its Executive Member FAQ. Shoppers who rely solely on in-store marketing would likely miss it entirely. Savvy members checking the fine print are the ones reaping the benefits.
3. The Benefit Rewards Costco’s Most Loyal Customers
Executive Members pay $120 per year. That’s double the cost of a standard membership. But the company is determined to make that extra fee feel worthwhile. Exclusive perks like this are designed to reinforce that loyalty, rewarding those who consistently use Costco’s services year-round, not just for bulk food runs.
4. It Ties Into Costco’s Long-Term Travel Strategy
The travel expansion signals how seriously Costco takes its growing travel division, which has become one of its most profitable categories. Costco Travel has outperformed expectations thanks to negotiated deals with major cruise lines and hotel brands. Offering extra cash back for Executive Members is a smart way to increase bookings through Costco rather than third-party sites like Expedia. It’s not just a reward—it’s a strategy to boost internal revenue.
5. You Still Get the Annual 2% Reward
This new perk doesn’t replace Costco’s existing 2% Executive Member reward—it stacks with it. Members still receive up to $1,000 per year in annual cash-back certificates based on total spending. Adding a travel-specific incentive on top means Executive Members can effectively earn double rewards when planning vacations through Costco Travel. These layered benefits now make Executive status one of the most rewarding memberships in retail.
6. Costco Is Testing More Tier-Exclusive Perks
Insiders hint this is only the beginning. Costco is reportedly exploring expanded perks for its highest-tier members, including additional insurance and auto discounts through its in-house financial services partners. Costco’s long-term strategy mirrors Amazon’s Prime model—adding more hidden value to justify premium membership. The difference? Costco’s perks often focus on tangible, cash-value benefits rather than streaming or digital content.
7. You Have to Book Directly to Qualify
The catch? To get the extra 3% rebate, Executive Members must book directly through Costco Travel, not third-party platforms. Many travel booking sites use dynamic pricing, meaning members may not see Costco’s exclusive rates elsewhere. To ensure the reward applies, log in through your member account and confirm your Executive status before purchase.
8. This Move Reflects Costco’s “Reward the Core” Philosophy
Unlike competitors who chase new sign-ups with flashy promotions, Costco’s approach is to reward its most loyal core base. The majority of Costco’s profits come from membership fees, not product margins. That means the more they can add value to Executive Members, the stronger their retention becomes. This hidden perk fits perfectly into that strategy—quiet, exclusive, and high-impact for those who pay attention.
9. The Value Adds Up Fast for Travelers
A family spending $5,000 annually on vacations through Costco Travel could now earn an additional $150 in rebates, on top of their normal 2% reward. Add that to credit card points from the Costco Anywhere Visa by Citi, and the total rebate potential climbs even higher. Costco Visa holders earn up to 3% cash back on travel, meaning Executive Members can potentially triple-stack rewards.
10. Basic Members Miss Out Entirely
For regular $60 members, none of these bonuses apply. They can still book travel through Costco, but won’t receive the extra rebate or annual 2% cash back. That difference is intentional—it encourages members to upgrade. Membership upgrades account for a growing share of Costco’s revenue, proving the warehouse chain knows exactly how to turn small perks into big profit.
Quietly Powerful—Like Costco Itself
Costco has built an empire on understated value, and this latest Executive Member perk is no exception. It’s not loud, flashy, or even easy to find—but for those who dig a little deeper, the rewards can be substantial. By quietly rewarding its most loyal shoppers, Costco keeps its strongest members close—and its competition guessing.
Are you an Executive Member? Have you noticed this new travel perk on your account yet? Share your experience or savings in the comments below.
