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

For the past couple of years, hotel and airline loyalty programs have extended elite status in response to the COVID-19 pandemic. But in 2023, that’s coming to an end. A tsunami of downgrades will wipe out some travelers’ elite status because pandemic-era offers are expiring and loyalty programs are upping the qualification requirements.

“The cliff is coming,” says Phil Gunter, the co-founder of Status Match, an online service that helps people apply to match their existing elite status with status in other travel loyalty programs. “This is a major, unavoidable industry event.”

Status Match data predicts that approximately 1 million Americans will lose airline status in 2023. That’s an estimated 30 percent to 50 percent of all people with airline status.

But it’s not all bad news. This year could bring more bonus point promotions and avenues to earn elite status than ever before.

Why elite status cuts?

Most of 2019’s elites had their status extended over the past few years. Meanwhile, a natural flow of new elite status earners continuously has entered the pipeline. That combination has generated an unsustainably high number of elites.

“Where traditionally, a percentage of people would naturally be downgraded every year, that hasn’t happened,” says Mark Rosssmith, CEO of Status Match. “Some earned status and others retained it, creating today’s inflated database.”

That has led to issues for airlines, hotels and travelers.

For example, Delta Air Lines had to implement new policies to reduce crowds at its Sky Club lounges, including raising membership dues for elites.

Meanwhile, travelers face fiercer competition for seat or hotel room upgrades. And benefits that purportedly offer express service, like VIP check-in lanes, get bogged down if too many elites use them.

Encouraging ‘loyalty’

Travel programs are increasingly finding small ways to encourage loyalty, even before travelers have earned elite status.

For example, Jetblue now doles out “Perks You Pick” rewards, consisting of small goodies like early boarding once you’ve spent $1,000. American Airlines rewards travelers with similar, nominal benefits after earning 15,000 Loyalty Points.

Those small goodies might inspire someone to try to earn elite status, or at least encourage less-frequent travelers to stick with that airline, Ross-smith says.

Even more rewards

Airlines are offering more benefits to its biggest spenders. For example, American added more benefits to distinguish even bigger spenders. In 2023, it’ll start doling out lavish rewards like high-end electronics from Bang & Olufsen for earnings up to 5 million points — well past the old rewards ceiling of just 200,000 points.

Coping with downgrades

Ross-smith recommends looking for promotions to help retain status. For example, Alaska Airlines is offering a 2023 Fast Track where elite status holders who were downgraded can earn back their status by reaching a mileage-earning threshold before April 13.

For people who travel less now, hotel and airline-branded credit cards can help, as some offer automatic elite status as a benefit. Typically those credit cards have annual fees, but the fees are usually a fraction of the spending otherwise necessary to earn status through travel alone.

“Keeping people in the game is the most important thing at this juncture,” Ross-smith says. “The last thing Delta or Amex or anyone wants is for that customer to disconnect from loyalty, get a cash-back card and book travel based on the cheapest flights or whichever airline has the best timing.”