Planning road trips often comes with budget considerations, especially when renting a vehicle. Recently, a story highlighting a woman’s discovery about car rental pricing went viral. She originally reserved a car through Alamo Car Rental for a Colorado road trip, paying nearly $700.
Later, she checked through Costco Travel and was surprised to find the exact same Alamo vehicle for a much lower price. This incident has sparked discussions around rental car costs, booking strategies, and the benefits of membership-based travel portals. This article explores the full details of what happened, compares the two booking options, and analyses why Costco members often save money on car rentals.
We will also cover tips for finding cheaper rentals, along with a detailed side-by-side price table.
Rising Costs of Car Rentals in the United States
Car rental prices across the United States have seen a noticeable increase in the past few years. The reasons include:
- Limited vehicle availability caused by global supply chain shortages.
- Higher demand during travel seasons.
- Regional differences depending on pickup location.
- Extra fees such as insurance cover, fuel surcharges, and airport taxes.
Colorado, being a popular destination for scenic drives and ski resorts, often experiences higher car rental costs compared to other states. When the woman in this case booked her Alamo rental directly, she was quoted nearly $700 for the duration of her Colorado road trip. But her later comparison exposed a dramatic price difference when using Costco’s travel services.
What Happened: The Alamo Booking
The woman initially went to Alamo Rent A Car’s official website to reserve a mid-size SUV for her upcoming Colorado road trip. With pickup and drop-off planned at Denver International Airport, the total price came to just under $700 for one week.
This booking likely included:
- Base rental charge for the vehicle class.
- Colorado-specific taxes and fees, including airport concession fees.
- Optional extra charges like collision damage waiver and roadside protection.
She felt it was a fair price considering peak demand in Colorado. But after some research, she stumbled upon Costco Travel’s rental options. And the difference was shocking.
The Costco Car Rental Discovery
Costco offers its members access to travel discounts, including hotel bookings, flights, and car rentals. The woman searched the exact same vehicle through Costco Travel and discovered that the same Alamo SUV with identical rental dates and locations cost significantly less. Reports suggest the savings were close to 40%, meaning her rental dropped from around $700 to approximately $420.
This outcome highlights how third-party membership platforms like Costco Travel negotiate bulk discounts with rental providers. Unlike retail customers booking directly, members benefit from special rates unavailable to the general public.
Price Comparison Between Direct Alamo Booking and Costco
Below is a table comparing the two booking options for the same car rental:
| Booking Platform | Car Type (Mid-Size SUV) | Rental Duration | Location | Total Price (Approx.) |
|---|---|---|---|---|
| Alamo (Direct Booking) | Mid-Size SUV | 7 Days | Denver, CO | $690 – $700 |
| Costco Travel (Via Alamo) | Mid-Size SUV | 7 Days | Denver, CO | $420 – $450 |
This shows a clear savings of around $250-$280, simply by booking through Costco Travel instead of going directly to Alamo.
Why Costco Travel is Cheaper for Car Rentals
Costco Travel works as a volume-based middleman. Here’s why it offers better deals:
- Bulk Negotiations: Costco pre-negotiates discounted rates with rental providers like Alamo, Hertz, Avis, and Budget.
- Member Benefits: Only Costco members can access these deals, which makes the savings part of the value of membership.
- Lower Fees: Costco rentals often exclude certain hidden fees or provide extras like a free additional driver.
- Price Transparency: Quotes usually include taxes and fees upfront, avoiding surprise charges.
In this case, the woman’s savings were large enough to almost cover the annual Costco membership itself.
Rental Car Industry Pricing Models
The situation also reveals something about the car rental industry. Prices are not always standardised, and different platforms can yield drastically different results. Rental pricing is based on:
- Dynamic demand-based pricing (similar to airline tickets).
- Airport vs city pick-up costs.
- Included mileage limits (some rentals offer unlimited mileage).
- Corporate partnerships (like Costco’s deals).
Thus, customers who book directly may often end up paying premium prices unless they compare across multiple platforms.
Other Membership Discounts Beyond Costco
While Costco is one of the most popular, other institutions also provide rental car deals. Examples include:
- AAA (American Automobile Association) offering rental car discounts.
- AARP advocating lower senior rental prices.
- Credit card companies with travel portals.
However, Costco stands out because its membership costs are relatively low compared to the annual savings possible, especially for families and frequent travellers.
Lessons for Travellers
The main lesson from this case is that comparing car rental prices across multiple channels is essential. Many travellers trust direct bookings with big names like Alamo, Avis, or Hertz, but they may unknowingly pay inflated costs. Membership discount programs can make a massive difference, especially for longer rentals and during peak travel times.
FAQs
1. Can non-Costco members access Costco car rental deals?
No, you need an active Costco membership to use Costco Travel services, including rental cars.
2. Which rental companies does Costco work with?
In the United States, Costco Travel partners with Alamo, Avis, Budget, and Enterprise.
3. Does renting via Costco always guarantee the lowest price?
Not always, but in most cases Costco provides some of the most competitive rates due to its bulk-negotiated discounts.
4. Does Costco car rental include insurance?
Basic rental rates through Costco usually do not include insurance, but they often allow you to add coverage at a lower cost.
5. Can I add an additional driver for free with Costco rentals?
Yes, one free additional driver is often included with Costco car rentals, which is a significant saving compared to direct booking fees.
Conclusion
The story of the woman booking a $700 Alamo car rental for her Colorado road trip, only to find the exact same car at a much lower price through Costco Travel, shines a light on how variable rental prices can be. It also shows the importance of being an informed traveller, checking not just direct websites but also leveraging membership platforms that offer discounts. For many, a Costco membership can quickly pay for itself with just one car rental.
