What Is Elite Status?

Elite status is a classification made by a company or organization for their clientele as a preferred customer. It is most commonly used as a part of an airline or hotel rewards program. Elite status comes with benefits that are not available to the general public or are available to the general public for an additional fee. Elite status offers consumers both an incentive to become a frequent customer of the same company and a reward for ongoing brand loyalty.

Key Takeaways

  • Elite status is a classification made by a company or organization for their clientele as a preferred customer.
  • Elite status comes with benefits that are not available to the general public or are available to the general public for an additional fee.
  • Elite status also brings the company the guarantee of consistent customers and provides them with a built-in network of customer feedback.

Understanding Elite Status

In some situations, elite status can be attained by anyone who qualifies for a company's co-branded credit card. While elite status used to only be available to customers by signing up for a company’s loyalty program and making repeated purchases; it might entail staying in the same chain of hotels 20 times during a calendar year or flying at least 25,000 miles in a year on the same airline. In recent years, elite status has become less exclusive, not only because it is easier to obtain elite status through a credit card, but also because some travel companies now sell to the general public on an a-la-carte basis. The customer base for many companies has also changed with the introduction of apps and websites that allow travelers to mix-and-match rewards, airlines, and hotel brands in order to get the best price.

Advantages of Elite Status

There are several advantages that achieving and offer elite status can offer for both the issuing company as well as the customer. For air travel, elite status benefits might include early boarding or seat upgrades on flights, access to faster check-in or security lines at the airport, complimentary access to the airline’s airport lounge, higher frequent-flier mile earning rates, priority re-booking for changed or canceled flights, and free checked luggage.

For hotel stays, elite benefits might include elite-only reservations and customer service phone numbers, late checkout, weekend stay discounts, room upgrades, free breakfast, guaranteed room types, executive lounge access, and free phone service. Some reward programs divide elite status into tiers, such as silver elite and gold elite, with gold elite customers receiving greater perks than silver elite customers.

Elite status also brings the company the guarantee of consistent customers and provides them with a built-in network of customer feedback. Elite status customers can provide valuable feedback and information to help the company improve its offering and increase customer satisfaction.

Example of Elite Status

The clothing and department store Nordstrom has an elite status rewards program called The Nordy Club. Members of The Nordy Club earn one point for every dollar spent in the store. If you have a Nordstrom debit card, you get two points for every dollar you spend, and if you have a Nordstrom credit card, you earn three points for every dollar you spend.

Once a customer has 2,000 points, they earn a $20 gift certificate redeemable at Nordstrom. Other benefits based on the amount of money that a customer spends per year include free basic alterations, lifestyle workshops, priority access to style events, and in-home stylists.