For decades, American shopping carried an air of fairness: the same store, the same product, the same price. But in today’s economy, that sense of equality is eroding fast. From airline fees to Costco’s new executive shopping hours, industries are building a clear divide between the “haves” and “have-nots.”
From Airplanes to Aisles: The New Norm
Airlines were the first to master unbundling: baggage fees, legroom upgrades, early boarding. What began as a way to cut costs has morphed into a tiered system where every perk comes with a price tag. Now, that same playbook is showing up in retail, travel, and entertainment.
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Streaming platforms charge extra to skip ads.
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Disney sells line-skipping passes.
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Uber offers discounts if you wait longer.
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Costco now gives executive members early access to stores.
As USC marketing professor Joseph Nunes explains: “It’s not that you always get what you pay for, but you don’t often get what you don’t pay for anymore.”
Costco’s New Tiered Reality
With more than 133 million members worldwide, Costco thrives on loyalty. But to drive growth, it has begun splitting customers into classes. Executive members, who pay $130 annually versus the $65 standard fee, now enjoy exclusive morning shopping hours and other perks.
According to Wharton’s Z. John Zhang, this is part of a “good-better-best” strategy, where companies create multiple tiers to maximize revenue. He predicts Costco may eventually add even more levels, tempting members to keep upgrading.
Perfect Price Discrimination in Action
The logic behind this strategy is rooted in economics: perfect price discrimination. Each customer is pushed to pay as much as they’re willing, whether that’s for extra legroom on a plane or priority shopping in a warehouse.
Technology has supercharged this process:
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Surveillance pricing allows websites to adjust rates based on your device, location, or browsing history.
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Loyalty programs track habits and reveal exactly how much inconvenience or cost a consumer will tolerate.
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Adtech tools now target individuals with precision once reserved for advertising, but applied to pricing.
As former FTC technologist Stephanie Nguyen notes: “We’ve shifted from broad categories to granular, individualized pricing power.”
Premiumization and the Psychology of Status
Not all consumers resist. Many embrace premium tiers as status symbols — from airport lounges to exclusive memberships. Business consultant Shikha Jain explains: “Anything that’s exclusive, you want to be part of that exclusive club.”
This approach, called premiumization, boosts profits without raising production costs. Companies don’t make goods more expensive to produce; they simply offer a “better” version — or make the standard version feel worse by comparison.
Risks of a Tiered Consumer Economy
While tiering can increase revenue, it also carries risks:
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Too much stratification could alienate core customers.
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Loyalty programs may backfire if benefits shrink.
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Overcrowded “exclusive” perks, like airport lounges, risk losing their appeal.
Still, the overall trend points to more variation, not less. Dynamic pricing, personalized upcharges, and tier-based perks are becoming standard across industries.
A New Kind of Consumer Normal
For those who can pay, premium tiers mean comfort, speed, and exclusivity. For others, it means enduring stripped-down versions of once-standard services.
Eventually, Americans may simply accept this caste system, much as travelers accepted baggage fees and seat upgrades. But nostalgia lingers for a time when prices were straightforward, and a better experience didn’t require joining a higher-paying club.
