Beyond frustrated or why I hate Costco

Frustration.jpgOn Thursday a very nice young lady called the agency and said she had driven by and seen our sign and could someone help her with some questions she had about taking a cruise. Actually, the cruise wasn’t for her, it was for her 70+ year old Mom and Dad and two of their friends who would be visiting her this summer from Japan. They wanted to take a cruise-tour to Alaska and since she (nor they) had ever cruised, she wanted to come in and discuss it. I told her “we are here to help.

About two hours later she came in and we had a very nice talk. I found out a bunch of stuff about what her parents and their friends were looking for in the way of a cruise. I told her that I thought I had all the info I needed and that I would have some options for her before this weekend was over.

This morning she e-mailed me some additional comments and we went back and forth with questions and answers until she used that horrid word that I have learned to hate…Costco.

I have a huge love-hate relationship with Costco. I have been a member forever. We probably spend thousands of dollars there every year. We get all our gas there, we get most of our grocery staples, most of our meat, all our paper goods and a bunch of other stuff from them. Heck, my son has worked at Costco for almost 20 years. But when someone mentions them when talking about travel, it drives be nuts. Especially someone like this young woman.

Her question was typical, “I see that if I buy the cruise from Costco, they will give me a Costco gift card for $350. Can you match that with a discount?” The answer is no, we can’t. And we shouldn’t. Costco uses travel as a loss leader and another way to serve their membership. It’s the way Costco pretty much does everything. The prices are lower to us because they make much of their money selling memberships and they make a bunch more selling prime space in their stores to companies. You know that big line of products on the left when you go into a Costco? The companies that make those products pay Costco to be there. As well they should. It’s prime real estate and the fact that their product is there and not on a shelf in the back means they will sell a BUNCH of extra product.

But Costco should not be in the travel business. Not because they compete unfairly (which they do) but because the people you are dealing with when you buy travel from them don’t have a clue about what they are selling.

If you think about it, Costco people seldom have a clue about what they are selling  product-wise. My son is in the “Majors” department. That’s the one that sells TVs, computers, etc. He knows that stuff. He ought to after almost 20 years. But if you go into his department when he isn’t there, you might end up talking to a new employee that started last week about exactly which TV or computer you are going to buy. Now this if just fine if you know exactly what computer you want. If you know how much RAM, whether you want a traditional hard drive or an SSD or one of many decisions you need to make to buy a computer. If you are ready to make the purchase and have done all your research and you feel like you are an expert—buy it. But if you have no clue about computers, and if you are a smart buyer, you either wait until my son is there (LOL) or you go someplace that knows about computers.

This is even more true when it comes to cruises. If Costco wants to sell car rentals and flights and hotels, that’s fine. Those things really don’t have many variables, while cruises do. If you are going to rent a car, you rent a car. You know what a Ford or a Honda are. If you want to book a hotel and you see a Hyatt on an online website, then you pretty much know what you are getting (although a good travel agent would know about good restaurants and sights near a hotel that was just as nice.)

When you buy a cruise from Costco you are buying it either online or from someone on the phone. If online then you better know exactly what you want stateroom-wise, exactly which ports you want to go to, exactly what perks you are getting, which dining plan you want, etc. Cruises have hundred of variables. But if you don’t, you are in trouble. And this nice young lady who came in to buy her parents a cruise said exactly that, “I don’t know anything about cruises.” If she decides to buy one from Costco online, she will be in trouble.

Let’s say she decides to make a phone call and talk to someone instead of buying her travel online? Will she talk to someone who knows all about cruising? Probably not. In fact my guess is that she will probably talk to someone who has NEVER been on a cruise. Not one. Sure, they may have read some brochures or studied the websites of the cruise lines they sell but have they sailed 20+ times? No. They work in a big phone room (you can’t go to your local Costco and book a cruise—you can only do it online or on the phone), where the next person who calls gets the next employee who is free to answer.

Of course this means when you call back because you need to make a change or something is a problem, forget trying to deal with the first person you talked to (“Can’t I talk to Joe, I really liked him so much when I called last time.”), that person may not even work there any longer. If the turnover at the Costco travel phone room is anything like the turnover at your local Costco, who knows who you will be talking to and what their level of expertise is. And imagine that this nice ladies parents (who, according to what she told me, speak Japanese predominantly) have a problem in boarding or anywhere along their way and they try to call Costco for help. They will get connected to the next person who answers the phone. Then they will get to explain their problem all over again. If they book with us and there is a problem, they will call me. I will know their circumstances and I will deal with the situation. And if I am not here, Mark

I have written before about my friend Seth Wayne. Next to Rick Steves he is probably Seattle’s number one travel expert. When it comes to cruising he even knows more than Rick. Before Kathleen and I got into the travel business he pretty much did not use a travel agent. He and I had discussions about this and his feeling was that he knew more than 95% of the travel agents he had met. As his friend and someone who he discusses travel with a lot, I agree with him. But that isn’t true of all travel agents and he knows that. That’s why when he found a travel agent who knew as much as he did, he started trusting him with his travel instead of booking it all online. (That would be me.)

You see Seth could book online if he wanted to because he is an expert. He knows if he is going to book a cruise, exactly what he will get from a particular cruise line (after 65+ cruises he should) and he knows exactly what to ask for if he buys it online. I have a lot of friends like Seth because we travel and cruise so much. They know what they want, they could book their travel themselves. But they don’t anymore—I do. Because they know that besides knowing as much as they know about travel, I have the time to look at all kinds of options and catch things they might miss. Not because they don’t know those things but because they are so busy they would have missed them. Sometimes they catch things I miss and they call me and I get them what they caught.

This nice young lady who called me actually told me, “I don’t know anything about cruising.” Should she book online or with Costco? You tell me. Will her parents have a great cruise if she books online or with Costco? Maybe. Will it be as good a cruise as it would have been if I booked with my expertise and the combined expertise of my fellow agents in our office? Probably not. If they have a problem, will they have someone they have met face-to-face to stand up for them, to fix things, to make things right—NO!

When I started this rant, I thought this will help with my frustration but it hasn’t. I have e-mailed the young lady and told her we needed to talk before I did any options for her parents. I had to do this because after being burned recently by a prospective client who had me do hours of research to find just the right cruise for her husband and his father, they went off and bought it at Costco. That is crushing. And I have resolved to never do that again. So as soon as someone mentions the C word, I stop working altogether until I can have a discussion with them. That’s where I am now. I have tried to reach her to no avail and have left her messages and e-mails but have not heard back.

Too many people today know the price of everything and the value of nothing. —Ann Landers

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