Lufthansa To Introduce Dynamic Award Pricing

Filed Under: Lufthansa

A Lufthansa executive has revealed that the Miles & More program will be moving to a dynamic award pricing model sometime soon. While no timeline has yet been given for the change, Lufthansa’s VP of Sales for the Americas says that “certainly that’s the direction we are going,” and that the move will “reflect the demand situation on a given flight.”

Lufthansa A320

Now, I do find it a bit odd that this is something that a VP of Sales is commenting on, since usually loyalty program changes is something only discussed either by very senior management or the loyalty executives themselves.

So I’m not sure how much of this was just a comment of “yeah, we’re headed that way as well,” rather than an announcement of something that’s imminent.

Regardless, this is no doubt the direction that Lufthansa will be headed over time:

So it seems inevitable that this is the direction Lufthansa is headed, especially since they began awarding miles based on how much you spend rather than how much you fly as of 2018 (which means that they generally follow industry trends).

Frankly I don’t consider the Miles & More program to be all that interesting — their redemption rates are fairly high, and they also have high carrier imposed surcharges. The only real upside to the program is that through Miles & More you can redeem for Lufthansa first class award seats more than 15 days in advance, which isn’t possible through partner airline programs.

Lufthansa’s A340 first class

Forbes also notes a couple of interesting things regarding the future of first class for the Lufthansa Group:

  • Swiss will continue to offer first class throughout their wide body fleet (including A330s, A340s, and 777s)
  • Lufthansa currently offers first class in about 50% of their wide body fleet, while long term they will only offer it in about 40% of their fleet, so you can expect further first class route reductions

Swiss’ 777 first class

Are you surprised to see Lufthansa (eventually) heading to dynamic award pricing?

Comments
  1. Update your Instagram bio. It says you don’t like staying anywhere more than 4 days or something, but now you’re a self proclaimed homebody and home for weeks at a time! Love the blog, and wishing your mother good health and a speedy recovery!

  2. Oh my, bummer but I still look forward to another ride in front on the LH B747-8i Intercontinental like the fun and enjoying the ‘Ambiance’ in 1K of RTW19 1.0 HND-FRA-IAD 🙂

  3. I feel like either AA or Virgin Atlantic will be next in this glorified cash back trend :c

  4. It would be really interesting for you to write a ‘then and now’ post @Lucky, how the value of points has changed since you started 10+years ago. We hear often of annual small devaluations, and changes to earning and spending rates but it would be good (or depressing?) to see how much things have changed over the last decade.

  5. Agree about M&M, really good only for first. Just booked award LAX FRA first for October which makes trip planning easier.

  6. I’ve been a Frequent Traveler (35,000 Status Miles or more) for many years. You are missing two key advantages of the Miles & More program: (1) Once you qualify, your qualification lasts for TWO years. (2) Once you qualify, you get FREE access to all Lufthansa, Austrian, and Swiss lounges worldwide.

    It is a big jump from 35,000 Status Miles to the 100,000 Status Miles required for Senator status. I’m hopeful that this year will be the first time I make it (although I have come close in recent years).

    I use my Miles & More points for transatlantic upgrades on Lufthansa and for domestic United Airlines flights in the USA and for European flights.

    I note that Miles & More recently adjusted their award chart earlier this month — and so any move towards dynamic pricing is easily at least a year off. They aren’t likely to mess with this twice in one year.

    I’ve already made three transatlantic trips this year and I have at least 4 more to go before the end of the year (and to points as distant as Kazakhstan and India).

  7. I need Lufthansa sky miles credit card . How do I go about it. I tried it online it get stuck when it get to area code .and could not fit in .pls assist.

  8. Lufthansa Miles and More sucks. You never redeem the dates and flights you want but rather they put you on some connecting flight operated by Air China and charge you 400-600 buck on top of miles.

  9. Another longtime (US-based) Miles&More Member and frequent LH flyer here. The surcharges are high but what differentiate Miles&More is award availability. I redeem for C not F and have over many years never had issues finding availability in C for two seats at or close to the dates I wanted. I might pay $800 per person in surcharges but that’s still a cheap C seat during summer or Christmas time between the west coast and Europe. As LH SEN there is additional award inventory which makes this even easier and that you cannot access using Lifemiles, Aeroplan or other programs.

  10. I don’t know about the US. In Germany flights are never available. Just tried Munich – Tokyo in Business for October. Their behind the times website offers me economy connecting flight for miles plus 572 dollars in surcharges. How ridiculous is that?!

  11. Sounds like Lufthansa does what AA and United does best; route you to 50 other cities before they let you get to your destination when you redeem for award tickets!

  12. I’m a senator with Lufthansa miles & more and have been so for 15 years.

    The big advantage of the program is the senator companion award. Say you want to fly business class from the US to Asia. The mileage cost is 185,000 miles but then you can take a partner along for a further 92,500 miles. Taxes and carrier imposed surcharges are high at approx $600 per ticket.

    Hope the program changes address the fuel imposed surcharges as well

  13. They say that award availability for senators is better. I don’t believe a single word Lufthansa utters though. Companion awards sound fabulous on paper but I doubt they’re available when I cannot even fly to Tokyo or other destinations when I want. The best award is useless if awards to your destination in the desired class are unavailable or available only as connecting flights costing you time and money (surcharges increase with each airport you land!). Regarding the surcharges. Why can ANA and other better airlines than Lufthansa offer the same award for 200 or less and Lufthansa is ripping its customers off?
    Regarding award availability i can imagine that it’s better in the US than in Germany.

  14. The availability is ridiculous. For one year no single seat in C from Germany to Sysdney is available on a flight with maximum 1 stop. The routes they offer you are crazy and the amount you have to pay for taxes is ridiculous. On flights within Europe the taxes for the award ticket are usually higher then a total paid ticket. Thats crazy and in my eyes criminal.

  15. yes i confirm availability is no more like 1 year ago.

    No more SQ or TG Europe-Asia !!! even Swiss who have empty 777 with plenty availability before is no more.

    New award price + dynamic pricing soon + no availability + crap surcharge = Miles and more

    It seem some people are too stupid to realize it.

  16. Redeemed Miles and More miles for round trip First Class, SFO-FRA-WAW, and return KRA-FRA-LAX. A380 outbound and 747-8 return. Yes, surcharges were $ 858 to Germany, and $ 258 on the return. Is this worth it? 85,000 Miles each way, plus the First Class Terminal in Frankfurt. Yes, it’s worth it. It is still a lot of money for an award ticket.

    Got these seats months ahead of the trip. Didn’t think I would ever see this so far out. So, that is a bonus. Will I keep earning Miles and More miles? I doubt it. Better seems to be a transferable currency, Marriott Bonvoy, AMEX MR, Chase Ultimate Rewards, or Citi Prestige.

  17. Lufthansa Economy one way from Frankfurt to Tokyo. With Lufthansa 264 Euro surcharges with All Nippon Airlines 152 Euro. Gives you an idea that Lufthansa is ripping you off big time! I’m trying to find a business class flight from anywhere in Europe on Miles even one way from Oct 18 till Nov 3. Not a single option anywhere. I have hundreds of thousands of miles. All worthless. I hope the current law suit will be successful and I can my miles worth in cash. Then I’ll finally will be able to go and buy a ticket.

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