Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Lufthansa expands “Light” fares to Premium Economy and Business: for now ITA remains out, but it’s only a matter of time – Full Analysis.
For years, Lufthansa has offered on long-haul flights the fare Economy Light, the one that on paper promises small savings but in practice often ends up turning into an inconvenient choice for a great many passengers. Now the German group takes another step in the direction of unpacking services and also introduces the new Premium Economy Light e Business Light.
A novelty that, at least for now, is still not about ITA Airways, but it is hard to imagine that it will remain so for long. Indeed, it is almost a foregone conclusion to imagine that once the transfer of shares between the Italian government and the Lufthansa Group is completed, AZ flights will also end up within this tariff logic.
And frankly, it is not a prospect that makes one rejoice.
What changes with the new Light rates
From March 17, Lufthansa started selling also on selected intercontinental flights the new “Light” versions of Premium Economy e Business Class. In essence, the ticket costs less because it includes fewer things.
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In Business Light will be included One 32 kg checked baggage instead of two, while in Premium Economy Light you will go from two 23 kg bags to one. Up to this point, some might even say: it’s okay, as long as you know beforehand.
The real problem is another: in Business Class It will also no longer include the choice of place, which will become extra to pay, with costs that can be around the 80-120 euro. Added to this are. Higher penalties for foreign exchange and the absence of refund.
In summary:
Premium Economy Light
- 1 23 kg baggage instead of 2
- 1 8 kg carry-on bag + personal accessory
- place to pay,
- possible changes, but more expensive
- no refund
Business Class Light
- 1 baggage of 32 kg instead of 2
- 2 x 8 kg carry-on luggage + personal accessory, unchanged
- seat not included
- possible changes, but with higher costs
- no refund
It doesn’t just apply to Lufthansa
The new tariffs are also being introduced simultaneously by SWISS, Austrian Airlines, Discover Airlines and Brussels Airlines.
Lufthansa, Austrian and Swiss queues.
For the time being, they will only be available on part of the long haul network, specifically on routes to and from Asia, Africa, the Middle East, Central America and South America. The following remain initially excluded North America, but also markets such as Japan, Singapore, China, Malaysia and Australia.
The bitterest point: they also pay statuses
Perhaps the most indigestible part of the news concerns the most loyal passengers. The we had already seen with the debut of the new Allegris cabins., now the modification is practically complete.
Those with Star Alliance Gold status might think they are at least partially saved, and indeed on the baggage front something remains: customers with status will continue to have a more generous allowance, up to 2 bags of 32 kg in Business e 2 of 23 kg in Premium Economy.
But on the topic of choice of place Lufthansa decided to shoot straight: HON Circle, Senator and Star Alliance Gold will also have to pay the seat selection fee if they purchase a Light fare.
And this is where the message becomes pretty clear: loyalty matters less and less, or at least it matters until it hinders the monetization of each individual service.
The precedent is already there: in Economy Light it already works like this
It should also be said that, in part, we are already familiar with this pattern. In Economy Light it has already been so for some time: you save some money on purchase, but then any additional services are paid for.
And this is precisely the crux of the matter. Because this “fake” savings, on paper, may perhaps look attractive to some, but Will please (almost) no one. Also because, for what you often see at the reservation stage, the difference between a Light and a Basic is only a few tens of euros.
The point, however, is not just how much you save right away. The point is. an inattentive user might very well not realize that he had selected the poorest fare, convinced that he was buying a “normal” business or premium economy, and then later find himself spending much more between Baggage, choice of place and other additions.
And at that point that small initial discount stops looking like a bargain and looks much more like a well-packaged commercial trap.
ITA is out for now, but the ending seems already written
Today ITA Airways does not yet appear among the carriers involved In this novelty. But it would be naive to think that it will remain immune for a long time.
As long as the transfer of quotas between Italian state and Lufthansa Group will not be completed, ITA remains formally out of some of the group’s business choices. But the trend is evident and the script seems already written: when integration is fully completed, it will be hard to imagine AZ flights not adopting the same model.
And this, for those who hoped that joining the Lufthansa group would bring more certainty and more perceived quality, is not exactly good news.
In conclusion
The first reaction might be: it could have been worse. And indeed elsewhere we have already seen business classes “emptied” even more, with fewer services included.
But that doesn’t make the news any less disappointing. Because every time a company introduces a new “Light” tariff, the feeling is always the same: you lower the bar some more on what should be normal to find included in a premium ticket.
And the detail that makes the most noise, perhaps, is just that: Even the most loyal customers, the ones who should feel rewarded, are treated as one more opportunity to make cash.
Not exactly the signal one would expect from a group that, at least on paper, says it wants to build value around loyalty.