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Lufthansa has announced plans to segment airfares with the aim of boosting ancillary revenue. This move comes on the heels of a similar strategy revealed by Emirates, as shared during Lufthansa’s Capital Market Day in Frankfurt.
The airline envisions that the evolution of airfare pricing will lean towards selling individual add-on options. The Lufthansa Group is confident that catering to personalized needs might be the way forward.
From 2015 to 2019, Lufthansa’s ancillary revenue soared from €284 million to €585 million. With their new unbundling and upselling strategy, they aim to enhance this figure by another 50% over the forthcoming three years. This strategy aligns with Emirates’ decision to segment their business class fares earlier this year.
