Just a few weeks after United Airlines and a few years after Delta Air Lines announced intentions to experiment with dynamic pricing models for rewards programs, German carrier Lufthansa announced the same switch for its Miles & More program.
Unlike previous methods for selling seats based on reward levels, which structured prices based on the traveler’s number of points or miles, dynamic pricing lets the airline adjust the value of seats based on the live retail price of the ticket. For example, if a seat is vacant for a highly traveled season like summer, the number of miles needed to acquire that seat may be higher than the winter months.
By adopting this style of pricing, award charts and associated redemption levels aren’t published on the airline’s website. The overall strategy can be beneficial for awards members, as they can score seats for fewer points than they would be able to with the former tiered pricing method.
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