Fine print booking DCL with Costco Executive membership

[oumagic]

Just be aware of their policy regarding how they calculate rewards. It is in the fine print that I didn't see and not disclosed to me when I was told "Executive members earn 2% toward travel." I received my 2018 rewards and was blindsided by their policy because I didn't read the fine print.

Situation: I joined as an executive member in October 2017 and booked a DCL cruise with a roughly $3600 deposit. My rewards are calculated in December, so understandably there were no rewards in December 2017 since I could still cancel the cruise. We paid in full in August 2018 and it was non-refundable and no cancellations. I did know that the Costco gift cards I will receive are not mailed until after the cruise; they do a good job of stating that online when you book. I did not expect that the $22,000 I gave to Costco in 2018 would result in an $80 reward when I was expecting $400+. The reason is that they do not give you credit on your executive membership until after the cruise.

So to sum up, I booked a cruise in October 2017 with Costco travel using my newly purchased executive membership. You must be an executive member when booking travel to earn rewards but you must also remain an executive member until after you travel (2019) to get that reward. You also don't get the reward immediately, they only calculate rewards once a year. It is not really that great of a reward for me when I have to pay $180 cash in extra membership fees in advance to receive $380 in Costco rewards that can only be spent at Costco (edited 12/20 because this was pointed out to me as to be false and you can cash out the rewards at a Costco to spend elsewhere). I book in October 2017 and get my 2% back in December 2019.

This policy might work for some and might not for some. It will obviously work better on travel that you do not have to book far in advance, but as most of us know, that is not always the case with DCL. I hope my not looking at the fine print helps some of you not face disappointment with Costco in the future.

 

[LizGirl]

Admittedly loyal Executive Member here - I spend enough at Costco every year to easily justify the fee before booking travel. I guess I'm not surprised by this since, as you stated, they don't issue rewards until the travel is completed and not cancelled.

As for the Executive Reward check, you can take it to a store to cash it. Did you only join for cruise reward money?

 

[oumagic]

I spent $4k this year outside of the cruise and that is why I got roughly $80 back. But I mostly joined executive for the cruise. When I booked in October 2017, they did not prominently post or advertise that the rewards are calculated after travel, but they are doing a better job of it now. It was in fine print when I booked because I went back and reread that email.

But I am not arguing that it is not their policy. I am just pointing it out that it is policy because I have seen many post on the forums that "you get 2% back with executive membership." That is 100% correct, but everyone must understand that it doesn't come until they calculate rewards AFTER your travel is complete. You could not get much worse than my timing.

In my opinion, I should not make final payment in August 2018 to get a reward in December 2019.

 

[cvjw]

Yep, that is the policy and we are fine with it. We booked a $10,000 cruise on the fantasy in May of 2017 for travel in May of 2018. We paid for the whole cruise in 2017. We still haven’t gotten the 2% Costco executive rewards yet. We will get it in early 2019.

We got the 3% back on the Costco visa in the year we paid for the cruise. We got the $600 in Costco cash right after the cruise. We will get the extra $200 from Costco in a couple months. Not that big of a deal to us and certainly didn’t stop us from booking other cruises with Costco travel.

I guess if you only got the executive membership solely for the travel bonus, you would be disappointed. I spend so much at Costco that they don’t even ask for my membership card anymore. They recognize me - not sure if that is good or bad

 

[lilsonicfan]

I'm also one of those who is fine with the terms, but honestly, I would never have thought anyone would get executive membership just for the travel benefits. We spend so much at Costco that we always easily get back more than the difference between "regular" and "executive" membership, even without the travel part. They used to have a policy where if you had executive, but didn't spend enough to earn the $55 difference, they would refund any shortage back to you. Not sure if they do that now. I have 3 boys and I can honestly say that with the exception of some produce we get almost all our groceries at Costco... and almost all of our toiletries... so many things are just so dang cheap. Part of the problem in any event in your situation is that we book disney cruises so far out. I wonder whether they would give you the 2% back if you explained what happened (your post wasn't clear, but did you cancel your membership after the first year?)

 

[PrincessArlena'sDad]

I'm also one of those who is fine with the terms, but honestly, I would never have thought anyone would get executive membership just for the travel benefits. We spend so much at Costco that we always easily get back more than the difference between "regular" and "executive" membership, even without the travel part. They used to have a policy where if you had executive, but didn't spend enough to earn the $55 difference, they would refund any shortage back to you. Not sure if they do that now. I have 3 boys and I can honestly say that with the exception of some produce we get almost all our groceries at Costco... and almost all of our toiletries... so many things are just so dang cheap. Part of the problem in any event in your situation is that we book disney cruises so far out. I wonder whether they would give you the 2% back if you explained what happened (your post wasn't clear, but did you cancel your membership after the first year?)

Some live so far from a Costco that it really is not worth ever shopping there.

For those people, Costco travel really is the only reason to get the membership.

 

[oumagic]

Part of the problem in any event in your situation is that we book disney cruises so far out. I wonder whether they would give you the 2% back if you explained what happened (your post wasn't clear, but did you cancel your membership after the first year?)

No, I explained and that is part of my problem. The way it was explained to me yesterday is that I have to be an executive member the day I book the cruise until the day they issue rewards. I do not think one should have to be a member for 3 years to get credit for 1 cruise. I had to join in 2017 to book, renew in 2018 and renew in 2019 for them to give me my reward.

I expected they could simply generate the rewards early if I chose to cancel. But they said "no." I asked if they could waive my executive upgrade fee since I had to have it for 3 years to get a reward on the $19,000 and they said "no."

It is their policy and they have no plans to change or work around. I just hoped to make people more aware. I understood 2017 getting no rewards, but I really thought I would be getting $440 December 2018 and got $83. Obviously, if I can afford the cruise I don't need the $400 right away. I just don't like it.

I always have used Costco for business. I had to jump through a few hoops to get the executive membership because company policy is one where they don't want there to be incentive to buy things for the company that maybe aren't needed or could be bought elsewhere at a better price. Lots of examples in the past where employees have bought more expensive airfare or hotel rooms for extra points and things like that. I have been with my company 23 years, so it isn't a real worry for mgmt regarding me personally, but it is why I never upgraded to executive until the travel perk was announced.

 

[lanejudy]

I do not think one should have to be a member for 3 years to get credit for 1 cruise. I had to join in 2017 to book, renew in 2018 and renew in 2019 for them to give me my reward.

I get what you are saying. If someone has joined the Executive Membership just for the travel rewards related to a DCL cruise, the annual membership fee should definitely be taken into consideration. Sorry you weren't aware of that when you first got into the membership for the extra 2% reward.

But honestly it's not Costco's fault that many of us book our DCL cruises so far in advance. That's on us as consumers trying for the best price, maybe a bit blame DCL for their pricing structure, but ultimately it's the consumer. Costco isn't going to have specific Executive Membership rules for people booking DCL cruises. The rules are the rules across the board, all members, all purchases, all types of travel, all dates. I can absolutely understand why Costco structures their reward system that way.

Enjoy your cruise!

 

[lilsonicfan]

Some live so far from a Costco that it really is not worth ever shopping there.

For those people, Costco travel really is the only reason to get the membership.

Oh, of course. I am not sure I would get a membership solely for the travel if I couldn't shop there (although I note that Costco.com has some amazing deals sometimes). I'm Canadian, and even though I've thought about getting a BJ's membership to try and snag some gift cards, it doesn't make practical sense even if I can use a good workaround.

I will say that the 7-8% back is still well worth it on a regular membership if you don't have the executive membership.

 

[lilsonicfan]

I can understand Costco's policy in any event, as lanejudy said, this is a situation peculiar to DCL, especially because we all know DCL prices go up as time goes on, not down... I would guess that many people don't book travel so far in advance. Coupled with Costco not really wanting to promote the idea of only periodically having their most expensive membership ... I can see why they won't change the policy. Bummer, but I hope you'll have a great time anyway.

 

[oumagic]

I get what you are saying. If someone has joined the Executive Membership just for the travel rewards related to a DCL cruise, the annual membership fee should definitely be taken into consideration. Sorry you weren't aware of that when you first got into the membership for the extra 2% reward.

But honestly it's not Costco's fault that many of us book our DCL cruises so far in advance. That's on us as consumers trying for the best price, maybe a bit blame DCL for their pricing structure, but ultimately it's the consumer. Costco isn't going to have specific Executive Membership rules for people booking DCL cruises. The rules are the rules across the board, all members, all purchases, all types of travel, all dates. I can absolutely understand why Costco structures their reward system that way.

Enjoy your cruise!

I will definitely enjoy the cruise and I respect your opinion. I do not expect that they change the rules for Disney Cruise passengers; it has absolutely nothing to do with Disney. I want them to look at their policy in regards to travel and executive membership rewards for everyone.

I was a member when I booked the cruise and a member when I paid in full and feel I earned the rewards at that time. I will even be a member when my travel ends January 3, 2019. But I have to renew on February 28, 2019 in order to get my rewards? The policy doesn't make sense to me but it is their policy. I have spoken to Costco and written letters for them to at least look into the policy.

If I bought a television in August 2018, I would not have to wait to December 2019 to get the rewards, right? They do not make you wait until the warranty expires or make sure you use the item to give you credit for your purchase.

 

[undertheradar]

The upgrade in membership will be offset by the added executive reward. I had no idea that members upgraded for a limited time to get added rewards.

The Costco electronics warranty is a true benefit. We had a tv go bad 3 weeks before Costco warranty ran out. This was the week before Christmas. Our replacement tv was received in 3 days. That's what Costco can do.

As for how long it takes to receive rewards, why would they reward you before they are paid commission by whatever travel you booked? Not sustainable from a standard business outlook.

 

[oumagic]

As for how long it takes to receive rewards, why would they reward you before they are paid commission by whatever travel you booked?

Are you saying that they are not going to get a paid commission until December 2019 for a cruise I paid for in August 2018 and completed travel January 3, 2019?

To put it bluntly, I think it is asinine that I have to renew in February 2019 to get my rewards and must wait 11 months after travel to get them. I understand if you don't agree.

 

[undertheradar]

Are you saying that they are not going to get a paid commission until December 2019 for a cruise I paid for in August 2018 and completed travel January 3, 2019?

To put it bluntly, I think it is asinine that I have to renew in February 2019 to get my rewards and must wait 11 months after travel to get them. I understand if you don't agree.

Let's grow up here. The travel agency does not receive commission until travel is completed. Depending upon the volume of DCL travel they book, impacts the amount of commission received by the host agency. So, your travel agency is not going to be paid commission before at least a month after you complete travel.
When you joined Costco, you accepted the terms and conditions of membership, including the added benefits of Executive Membership.
Executive rewards earned by December 31, are paid the following year. In your specific membership, your renewal will take place before your rewards are applied to your account. The cost of executive membership should be weighed upon the possible added rewards earnings, as it is not for everyone. Combining the executive membership with the Costco credit card rewards, you had a potential 5-6% total return combining the rewards, not including the Costco Cash Card received after your cruise. Adding the cash card, you had a potential 10% reward available to you, just not paid out as quickly as you prefer.

 

[lilsonicfan]

I think it's obvious that if your travel is done Jan 3/2019, Costco Travel will get the commission before Dec 2019. But nothing compels them to reward you under the terms of the executive membership until the following year. Your post is useful in terms of people needing to be aware of terms and conditions before they purchase, but I wouldn't hold my breath that Costco will change anything. The fact that you'll have to have the executive membership for 3 years is in part affected by how early one books a DCL vacation as opposed to other travel.

 

[oumagic]

Let's grow up here. The travel agency does not receive commission until travel is completed. Depending upon the volume of DCL travel they book, impacts the amount of commission received by the host agency. So, your travel agency is not going to be paid commission before at least a month after you complete travel.
When you joined Costco, you accepted the terms and conditions of membership, including the added benefits of Executive Membership.
Executive rewards earned by December 31, are paid the following year. In your specific membership, your renewal will take place before your rewards are applied to your account. The cost of executive membership should be weighed upon the possible added rewards earnings, as it is not for everyone. Combining the executive membership with the Costco credit card rewards, you had a potential 5-6% total return combining the rewards, not including the Costco Cash Card received after your cruise. Adding the cash card, you had a potential 10% reward available to you, just not paid out as quickly as you prefer.

I can disagree with you without calling you childish and I would appreciate that if you disagree with me, you do the same.

As I mentioned a few times in the thread, I was not aware of the policy until my reward came in the mail. I went back and read the fine print and saw that it was my error and that I had agreed to their terms. I posted this thread as a result of my error.

I didn't post an opinion that I disagreed with the policy until a few others posted that they had no problem with the policy. I was a member when I booked travel, I was a member when I paid them in full, and I am a member when I complete travel nearly two months before my renewal date. In my opinion, I have earned that reward but Costco policy says that I haven't and that I must renew again to get it. Agreeing or disagreeing with my opinion will not change my opinion nor their policy.

One error in what you post: executive rewards are calculated 3 months before your renewal date, not on December 31 in case anyone is reading this and thinking about their own circumstances.

Everyone feel free to post in the thread; I will not respond further.

 

[undertheradar]

Are you saying that they are not going to get a paid commission until December 2019 for a cruise I paid for in August 2018 and completed travel January 3, 2019?

To put it bluntly, I think it is asinine that I have to renew in February 2019 to get my rewards and must wait 11 months after travel to get them. I understand if you don't agree.

Sorry, I found your choice of language to be offensive.

 

[cvjw]

So, what happens if Costco gives you the extra 2% in rewards in the year you paid in full for a cruise and then you cancel the cruise and cancel your membership?

I am sure Costco’s policy takes this into account because I am sure people would exploit this loophole if they could.

 

[lilsonicfan]

I'm certainly not saying that your opinion of their policy is wrong. I'm simply saying that Costco is extremely unlikely to change their policy. You said that you want them to look at their policy ... I just don't think that's gonna happen. This thread is worthwhile for anyone who considered buying executive solely for the travel benefit of 2% extra. For me, executive is worth it for the rewards I get on all my other purchases. Even my bathtub is from Costco....

 

[oumagic]

So, what happens if Costco gives you the extra 2% in rewards in the year you paid in full for a cruise and then you cancel the cruise and cancel your membership?

I am sure Costco’s policy takes this into account because I am sure people would exploit this loophole if they could.

Since you asked me a direct question: I paid in full $16k with no option for refund or cancellation in August 2018. My renewal date is not until Feb 28, 2019, well after my cruise is over. I still have to renew to get the reward in December 2019.

If I had any chance to cancel or refund after that payment, my opinion probably would be different.