Last year, we saw Lufthansa introduce its new Allegris first class product, which debuted on newly delivered Airbus A350-900s. This product is a huge improvement over Lufthansa’s old first class, though there’s a major quirk about the monetization that hasn’t made sense to me. Lufthansa has now addressed that concern, and arguably has gone from…
Continue reading: Lufthansa Admits Defeat On Allegris First Class Double Bed Monetization
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The 50% discount was actually exactly what I would've thought to do right off the bat. It's insulting that they thought people would be dumb enough to pay for 2 seats while receiving 1.5 seats.
I also agree that they should probably sell the middle seat for an upcharge as they're going to go immediately and couples who might want them will find them unavailable.
I wouldn't attach a euro cost though and instead I would price it at a 10-20% upcharge for a single person to assign it at booking (10% for the highest tier hon circle members maybe and 20% for anyone else)
Or, just rip them out and put in two proper single-person seats (sized so that they'll fit).
This seems to be stupid in the reverse. With the 50% discount the center becomes pretty attractive to people not minding the drawback (one screen, one table, one door). Now, with no fee to select it I imagine not many of those 50% fees will be reaped, I would definitely have charged a $1k fee on top or only opened this up upon check-in.
The 50% discount is on the second ticket...
You don't get a 50% as a standalone traveller
It is probably some people saw the stupidity, but the CEO and senior management were sold the stupidity and no one had the temerity to tell them it was stupid because of fear.
Or they were told and ignored and fired the person who told them it was stupid.
This is unfortunately a constant play in corporate life.
LH also suggesting they'll have to begin doing refueling stops for destinations with jet fuel shortages. AS doing a USPP offering of $500MM to deal with increasing fuel costs.
Who would have thought this was not a good idea?
They should make 2 separate suites and if needed, they should one person sit on the window seat and the other one in the aisle, making the corridor as private as possible...
Ben, please accept this click as a token of my dismay at this situation …. enough said?
Yes, they are saying the 50% discount makes it compelling for some couples now (a positive for LH yield management in theory), but because they stupidly also won't charge a fee for a solo traveler to select it, those seats may often be selected by solo travelers before a couple could book it so LH collects no fee instead of potentially getting an extra 50% First class revenue.
If a solo traveler selects it and the cabin is full, LH nets 3 First class fares. If a couple selects it and the cabin is full, LH nets 3.5 First class fares.
Yes - executives hate accepting reality when it doesn't align with the revenue ambitions they have or the story they've pitched to the board... So they'll ignore the most obvious inevitability until it's completely unavoidable.
What about upgrading from business class? If there are two of you does it allow you to get 50% off the second person?
Ben how does 50% discount work if the first passenger booked with miles? And for cash fare, do I book two pax and they will give me the discount once I select the middle seat in the booking process?
@ FrozenKiwi -- The 50% discount is only if you pay cash for the first ticket, and there's on indication of a discount on upgrades.
@ Ken -- The 50% discount only applies on cash fares, as I understand it. Currently the discount doesn't apply online, but instead, you need to book by phone for the 50% off.
I won't be surprised if a phone call is needed to get the discount (it was needed to open the 'fourth' seat to begin with) or maybe it has to be done via fax (pun intended).
I still don't get why the middle suite is better than having a window suite if you are by yourself...even for free I don't get it. The window seats are better.
The number of things you have to do by phone with LuftKafka is ridiculous. Especially when considering the quality of the staff they have answering said phone calls.
LuftKafka is all about designing the product, pricing structure and systems and compelling the customer to conform to it.
For a day time flight, I agree. For an overnight flight, the extra width for sleeping would be nice (although I understand Lufthansa haven’t done a great job of making sure you don’t feel the divide in the seat).
It’s almost literally the perfect example of an ‘over-engineered’ stereotypically German product.
Agree that they should just lower the surcharge for solo passenger. Free makes no sense, $1k would be better.
Only thing I can think of is that this is just for a trial period to get their regular F fliers excited, after which they'll add surcharge.
50% discount for 2nd ticket makes complete sense though.
The problem with that double is that it can't be used for two strangers when necessary. The configuration would need to be such that it could work for a family or friends and could work for two strangers but it is not designed so flexibly.
And there is a war in Iran…this (Allegris first class) is a non issue. Very slow news day.
I think Alert is on to something! Standing might in fact be the preferable solution on longhaul journeys.
That depends. Given the choice was this or a single central suite, why not? Then, try the original method of charging to see if it works. If so, bazinga! It didn't. Go to plan B. You get 3 F fares and sometimes 3.5. If the center suite was a single, you'd never get more than 3. I call this plan brilliant. Unfortunately for them they get plan B not A revenue. But, it is still better than a single, middle suite.
Plan A was the old model. Plan B is the new. Why not try plan A, which could generate a lot more revenue before moving to plan B? It seems stupid to implement plan B from the start without giving plan A first. Replacing the larger, middle suite with two single suites would degrade the product. Heck, J is already 1-2-1.
Not wanting to keep repeating this, but maybe they suspect this would be the pricing structure, but tried a more lucrative one to see if it worked. That's called smart business.
I have to admit I'd go 1K. The other suites l"ook" at each other. So long as the J folks are not permitted to use the front lav, you get nice privacy. But, to be honest, while I keep flying J when I'd probably be OK in PE, I can't see me paying for F outside narrowbodies.
I think they may suspect nobody will pay it. If you book and 1A and 1K are reserved, why would you pay extra to reserve the middle suite? You'll get it anyway for free. And, if 1A and/or 1K are open, why reserve one of them? You hope that they get reserved and you end up in the middle. If not you get A or K, two pretty close options (though I'd want K).
Or, they thought that a 1-2-1 F would not be as attractive on a plane that width. So, why not make it 1-1.5-1 instead of 1-1-1. The extra space gets you no less revenue than 1-1-1 and, maybe, 3.5 F fares instead of 3.
I think everybody here who would not want a bed available to them on an overnight flight should respond with a thumbs up to this post. The odds market has suspended betting because everybody wants zero.
So, everytime there is military action, everytime there is strife, hunger, or repression, we are not allowed to talk of anything else. My grandparents told me that during World War 2, you were not allowed to discuss anything but that. But, they did like to pull my leg. You forgot to say "first-world problem."