Listen Now: Costco’s Travel Services
First it was the next great car salesman and now it looks like Costco is replacing your favorite travel site as well.
I recently reported on Costco’s car selling plan that was beating most major dealerships across the country. Now it’s travel service is giving other companies a run for their money, and customers.
For eighteen years the company has been offering members deals on hotels, flights and rental cars. But lately more people are taking advantage of it, for one main reason, low administrative costs. According to the company’s CFO, it’s not the value of the plane or hotel ticket driving up the cost on other booking sites it’s the broker commission. So in order to lower the price tag for members Costco only offers a limited number of products and focuses on those with good value and solid customer service.
Recently added benefits such as 2% cash back on travel purchases and gift cards for certain travel-related items you buy don’t hurt either.
Looks like Costco has found a winning business model; value for your money and free samples.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.
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