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A14 BUSINESS
Friday 27 January 2023

Airline, hotel elite status: Harder to get (or keep) in 2023

By SALLY FRENCH of Nerd- break up with status free-
Wallet riders, but they’ll likely seek
For the past couple of years, new, paying customers
hotel and airline loyalty with enticing offers.
programs have extended FOR INFREQUENT TRAVEL-
elite status in response to ERS: LOYALTY BENEFITS BE-
the COVID-19 pandemic. FORE REACHING ELITE STA-
But in 2023, that’s coming TUS
to an end. A tsunami of Travel programs are in-
downgrades will wipe out creasingly finding small
some travelers’ elite status ways to encourage loyalty,
because pandemic-era of- even before travelers have
fers are expiring and loyalty earned elite status.
programs are upping the For example, JetBlue now
qualification requirements. doles out “Perks You Pick”
On Jan. 1, 2023, United Air- rewards, consisting of small
lines raised requirements for goodies like early boarding
Premier status tiers. Come once you’ve spent $1,000 .
March 2023, it’ll be tougher American Airlines rewards
to earn American Airlines travelers with similar, nomi-
Gold elite status. Major ho- nal benefits after earning
tels, including Marriott and A traveler pulls their luggage between terminals at Logan International Airport, Wednesday, 15,000 Loyalty Points.
IHG, promised to extend Jan. 11, 2023, in Boston. A traveler pulls their luggage between terminals at Logan International Those small goodies might
Airport, Wednesday, Jan. 11, 2023, in Boston.
elite status through Febru- Associated Press inspire someone to try to
ary 2023, meaning auto- earn elite status, or at least
matic extensions are at more bonus point promo- every year, that hasn’t statement from Delta cited encourage less-frequent
their end. tions and avenues to earn happened,” says Mark “record number of visits” travelers to stick with that
“The cliff is coming,” says elite status than ever be- Ross-Smith, CEO of Status and “frustration for some airline rather than go with a
Phil Gunter, the co-founder fore. Match. “Some earned sta- customers who find them- competitor on future flights,
WHY ARE LOYALTY PRO-
of Status Match, an online tus and others retained it, selves waiting in lines or Ross-Smith says.
service that helps people GRAMS CUTTING OFF ELITE creating today’s inflated searching for seating once FOR EXISTING ELITE STATUS
STATUS IN 2023?
apply to match their exist- database.” That has led to inside” as the reasons be- HOLDERS: EVEN MORE RE-
ing elite status with status Most of 2019’s elites had issues for airlines, hotels and hind the change. WARDS
in other travel loyalty pro- their status extended over travelers. Airlines and hotels Meanwhile, travelers face Elite status holders repre-
grams. “This is a major, un- the past few years. Mean- have to pay out promised fiercer competition for seat sent at least 30% of airline
avoidable industry event.” while, a natural flow of new benefits and clamp down or hotel room upgrades. cabin revenue, according
Status Match data predicts elite status earners continu- on policies that might have And benefits that purport- to Status Match data.
that approximately 1 mil- ously has entered the pipe- extended the exclusivity. edly offer express service, “If you take these people
lion Americans will lose air- line. That combination has For example, Delta Air Lines like VIP check-in lanes, get out of the equation, very
line status in 2023. That’s an generated an unsustain- had to implement new poli- bogged down if too many fast an airline’s financials
estimated 30% to 50% of all ably high number of elites. cies to reduce crowds at its elites use them. ARE become disastrous,” Ross-
DOWNGRADES
Sky Club lounges, including THE
people with airline status. “Where traditionally, a per- Smith says. Thus, airlines are
But it’s not all bad news. In centage of people would raising membership dues GOOD FOR SOME offering more benefits to its
fact, this year could bring naturally be downgraded for elites. A November 2022 Loyalty programs are set to biggest spenders.q

Walmart’s Sam’s Club to add 30 stores in next few years

By ANNE D’INNOCENZIO location opened in in Ha- were loading up essentials isting locations which are full-service floral area and
AP Retail Writer nover, Pennsylvania. as they stayed close to roughly 140,000 square dedicated hearing and
NEW YORK (AP) — Walmart The move comes as home. Given rising gas pric- feet. Most of the new clubs optical centers.q
said Thursday it plans to Walmart’s Sam’s Club di- es and surging inflation in will feature a sushi island, a
open more than 30 Sam’s vision has enjoyed strong food, shoppers have been
Club locations in the next sales growth and a record turning to warehouse clubs
few years, marking the first rise in membership over the in search of better deals.
expansion since 2017. past two years. For the lat- Over the past several years,
The nation’s largest retailer, est quarter ended Oct. 28, Sam’s Club has redesigned
based in Bentonville, Ar- sales at stores opened at the majority of its 600 clubs,
kansas, plans to open the least a year rose 10% for making them brighter and
first Sam’s Club location as Sam’s Clubs. For the com- easier to navigate. The
part of the expansion next pany’s namesake stores, brand has expanded its
year in Florida. Sam’s Club that figure was up 8.2%. shopping technology like
is also modernizing its distri- Warehouse clubs including Scan & Go, a mobile app
bution network. Sam’s Club Costco Wholesale Corp. that allows shoppers to
will launch five new supply and BJ’s Wholesale Club scan merchandise and
chain fulfillment and distri- have been a bright spot check-out without going to
bution centers, with the first in the retail industry but the cashier line.
location planned in Geor- resonated even more dur- The new clubs will be ap- The price of gas is displayed on a sign at Sam’s Club in
gia later this year. ing the early part of the proximately 160,000 square Annapolis, Md., Monday, March 30, 2020.
The last new Sam’s Club pandemic when shoppers feet, larger than most ex- Associated Press