by Lufthansa Flyer | Apr 20, 2016 | Featured, Lufthansa, Miles & More |
If things go according to plan and history, Lufthansa should be rolling out ‘enhancements’ to Miles & More sometime in the 3rd or 4th quarter of this year. Typically LH tweaks their program every 2 years so we’re due, and if the announcement is similar to what other Frequent Flyer programs have implemented, people will start to cry that the sky is falling and the end days are upon the elitist maximizer…….
If you have been paying attention to airline loyalty programs, you’ll notice that most have transitioned, or are transitioning away from miles flown to determine status and are gravitating towards cash spent to determine status levels. In other words, programs have become revenue based and the trend is spreading through the airline industry.
What may happen to Miles & More? A few things…..
According to trusted sources that are near and dear to Lufthansa, it appears that one major change to Miles & More will be a move towards a revenue-based loyalty program. From an airline’s perspective, this model has obvious advantages to the balance sheet and only makes sense to be implemented. What remains to be seen is what the spend requirements will be for those striving for Frequent Traveller, Senator or HON Circle status levels. Should the revenue model come to pass, expect the program to be favored towards passengers who are paying for full fare classes (F, A, C, D, J, E, G, B, Y).
Discount fare classes such as P and Z along with most Economy Classes will be on the losing side of the proposition as far as helping you gain status is concerned. Another major concern will be how the program handles passengers who fly a lot of segments within Germany and Europe, but don’t spend a lot of money because even the most premium fares are not very high in most cases.
Other considerations on the drawing board for Miles & More include revamping the program to better integrate Eurowings (Lufthansa’s Low Cost Carrier unit) and how mileage/spend credit will be calculated from flights operated for Star Alliance member airlines. Not much has come out of the rumor mill on these points, but it is obvious that Miles & More will need to be amended to account for these points should the transition to revenue-based loyalty take place.
Am I a fan of this? Mostly yes.
What I like about revenue based programs is that it does reward an airline’s best customers and that is what a loyalty program should do. Reward those that spend the most money, not those trying to ‘game’ the system just so they can get into a lounge. What I don’t like is that I’ll have to focus more on the dollars I spend vs. the fare classes I buy, but the benefits of the program and my travel habits easily support the decision to accept a revenue-based plan.
With the current Miles & More platform for example, it is easy to gain Senator Status for as low as $4000-5000. Especially when you can book United ‘A’ fares within the United States for only $800 (Chicago -Washington DC – Seattle as an example). A smartly built itinerary can easily yield 18-20,000 status miles with something like this. Book 5 or 6 trips, and you’re Senator. You never would even have to board a Lufthansa operated flight to earn SEN, yet Lufthansa now bears the costs of that Senator’s membership including Lounge Access, E-Vouchers, etc. Creating a true loyalty program that actually rewards loyalty is in my opinion the proper business decision for any airline.
Predictably, there will be a lot of protesting, snorting and grunting if and when these changes come to pass. In my humble opinion, the Snorters and Grunters will ultimately be those that will be priced out of a loyalty program simply due to their lack of loyalty. In theory this should improve the quality of the program for those who actually are loyal (key words of course being ‘in theory’).
Much more to come as we get closer to September and October when I expect the rollout of any changes.
by Lufthansa Flyer | Apr 15, 2016 | Eurowings, Featured, Lufthansa |
In an effort to expand Lufthansa’s Eurowings brand, LH has been exploring options with fellow Star Alliance member ‘SAS’. Over the last 6 months, LH has been in discussions with SAS’ ownership (Norway/Denmark/Sweden Governments) to determine if some kind of merger or partnership would be possible to help both airlines accomplish their objectives. It has been no secret that the governments that have stakes in SAS want to get the airline off their books after providing an emergency lifeline to the airline in 2010 to keep it in business.
Lufthansa’s objective to is to take a quantum leap with Eurowings to put them at the top of the Low Cost Carrier (LCC) market in Europe, while SAS is looking to stem the tide of falling market share over the last several years.
From what I gather, the actual acquisition of SAS by Lufthansa is unlikely, as is a minority stake position. However, it seems that both carriers are keen on the idea of expanding their relationship that would allow Eurowings to immediately increase their footprint and give SAS the opportunity to expand their LCC market and move away from ‘Sovereign’ ownership. A partnership seems to offer the path of least resistance.
A major factor that will determine what happens between SAS and LH is what Lufthansa decides to do with Brussels Airlines. LH currently owns 45% of Belgian carrier with an option to buy the remaining stake. A Lufthansa Supervisory Board meeting on April 27 should bring clarity on this. Its widely believed that LH will acquire the remainder of the airline and actually integrate SN into its Eurowings division. LH has until 2017 to exercise the option to complete the purchase but it is likely to be completed this year if the board approves the transaction.
by Lufthansa Flyer | Apr 9, 2016 | Ducks, Featured, First Class, First Class Terminal, Lufthansa |
In a grievous oversight by yours truly, I forgot to post the images of the rubber ducks that Lufthansa featured for Easter 2016. Most of you have probably already seen these little critters, but just in case here they are:
The 2016 First Class Easter Ducks
For those of you keeping score at home, there is one that is missing in the photo above.
In addition the 3 above, there is another one that comes with a red ‘Eggshell’ cap. Thanks to FlyerTalk’s/VFT’s ClaudiSTR for helping complete the gallery!
Courtesy: FlyerTalk’s and VFT’s ClaudiSTR
To see the rest of the LH First Class Ducks, please visit their dedicated gallery.
by Lufthansa Flyer | Apr 6, 2016 | Fare Sale, Featured, Lufthansa, myOffer |
Just received note that Lufthansa has launched a 48 hour Economy Fare Sale that knocks fares down up to 50% for travel from Germany to the USA. The sale ends Thursday so make a decision quickly!
A lot of USA destinations from Frankfurt and Munich are pricing as low as €449. Destinations at this price point include Charlotte, Boston, and Philadelphia. Most other east coast destinations price around €479-499. West Coast is slight higher.
Keep in mind that these fares are eligible for the myOffer upgrade program that allows you to bid to sit in Premium Economy when booking an Economy seat.
In addition, you can still apply to get the €20 voucher good towards bookings made for travel originating in Germany. This makes a good fare sale that much better!
The details for the fare sale are as follows:
Departures must take place between April 13 and June 30, 2016.
Return travel must take place between April 14 and September 30, 2016.
Tickets must be purchased 7 days prior to departure.
A Saturday night stay is required.
by Lufthansa Flyer | Apr 2, 2016 | Fare Sale, Featured, Lufthansa, myOffer |
Lufthansa has launched a summer fare sale that runs until April 8 and at first glance it looks like the savings range from 10-30% off of normal summer fares.
Some of the best deals involve Frankfurt. Flying to Frankfurt from NYC can happen for only $789, while Chicago, Washington DC or Denver to Frankfurt prices for only $989. Typically these are $1300-1500 fares during the summer.
Otherwise most East Coast departures to Europe range between $1100-1300 and fares from the midwest start at $1200 and work their way up to the mid $1500 range. Remember that these fares are upgradeable to Premium Economy using Lufthansa’s myOffer bid program.
The terms of the sale are as follows:
Sale ends April 8, 2016
Departures must take place between July 4 and August 22, 2016
Return travel must take place between July 4, 2016 and February 22, 2017.
Mid-Week departure/return required. Weekend flights will incur a surcharge of $200.
Ticket must be purchased 50 days ahead of departure.
Fare valid on flights operated by Lufthansa, Austrian, Brussels, Swiss, United, and Air Canada.
