Costco car-rental booking program boosts member value

That value proposition also fits Costco’s broader model, which depends on keeping members engaged and renewing. Costco said in its latest quarterly filing that paid members rose to 82.9 million from 79.6 million a year earlier, while membership-fee revenue climbed 11% in the third quarter to $1.37 billion.

The stock has been volatile even as the business stays well above long-term trend lines. Costco shares closed at $895.31 on Sept. 18, below both the 50-day moving average of $936.24 and the 200-day moving average of $958.23, with the relative strength index at 21, a level that points to heavy recent selling pressure. Trading volume jumped to 4.18 million shares, well above recent sessions.

For investors, the bigger story is not rental cars on their own but the way small services like travel bookings help deepen loyalty and raise the odds of renewal. That matters for a company that leans on membership fees for a meaningful share of profitability and uses convenience to defend itself against competitors in retail, travel and e-commerce.

The next catalyst is whether Costco can keep translating service-led membership benefits into renewals and traffic while the stock stabilizes after its sharp pullback.