The Lufthansa Group, which includes Lufthansa itself as well as airlines such as Eurowings Discover, Austrian Airlines, Brussels Airlines, Swiss and Air Dolomiti, again raised the prices for seat reservations at the beginning of October 2024.
The company is thus continuing a trend that has been observed in recent years: the price of additional services is rising continuously. Passengers in economy and premium economy classes are particularly affected by the new price adjustments, but travelers in business class will also have to dig deeper into their pockets for special seating options.
New pricing models: Greater differentiation according to seat types
The most important innovation in the current price round is the greater differentiation between seat categories. In addition to the well-known standard seats, there are now specific price adjustments for seats in the first row and for seats with more legroom. These categories, which are particularly popular with frequent flyers or on long-haul flights, now come with significant price increases.
According to the Lufthansa Group, the price for standard seats on European flights (Zone 1) has been maintained and is still at least 14 euros. However, for long-haul flights (Zone 5), the cost has increased from 39 to 45 euros. However, those who opt for a seat with more comfort, such as in the first row or with extra legroom, have to pay significantly more. In the highest price zone, the fee for such a seat in economy class can be up to 115 euros.
Significant price increases in Premium Economy and Business Class
The increases affect not only Economy Class, but also Premium Economy and Business Class. The price increase in Premium Economy on intercontinental flights is particularly significant. For short and medium-haul flights (Zone 3 and Zone 4), the reservation costs have been increased to 45 and 55 euros respectively, while flights in Zone 5 (long-haul) now cost up to 70 euros for a seat reservation. This means that passengers who want to secure a preferred seat have to pay significantly more than before.
It will be even more expensive for business class passengers who want to book a so-called "Extra Space Seat" on selected long-haul flights. These seats, which offer additional space, are available on Austrian Airlines, Brussels Airlines and Swiss routes and cost up to 230 euros per reservation. However, this price only applies to a very limited seating area and is restricted to exclusive long-haul flights.
Why are prices for additional services rising?
The Lufthansa Group justifies the price increases with increased operating costs and the increasing importance of additional services for the airlines' business model. In recent years, many airlines, especially during and after the Corona pandemic, have increasingly focused on additional fees for services such as seat reservations, baggage or in-flight catering in order to compensate for the falling revenues due to the price pressure on airline tickets. This is part of the so-called "unbundling", in which services that were previously included in the ticket price are charged separately.
Additional services such as seat reservations also offer airlines the opportunity to diversify their revenue while catering to the different needs of their passengers. While some travelers are price-conscious and will settle for a standard seat, others are willing to pay extra for more comfort or legroom. This differentiation allows airlines to more personalize the onboard experience and make the most of their fleet.
criticism from consumer advocates
Consumer advocates have long been criticizing the increasing additional costs of air travel. Many travelers complain that flight tickets appear cheap at first glance, but become significantly more expensive due to additional fees that often only become apparent during the booking process. Price transparency in flight bookings suffers as a result, which leads to dissatisfaction among consumers.
The Lufthansa Group responds to this criticism by pointing out that the prices for seat reservations will remain flexible and that travelers will be able to choose according to their personal needs. In addition, reserving a standard seat in certain fares, such as Economy Classic and Economy Flex, will continue to be free of charge on European routes.
Price increases also affect sales channels
What is also interesting is the fact that the price adjustments not only affect direct bookings via the Lufthansa Group websites, but also bookings via GDS (Global Distribution System) systems.
These systems, often used by travel agents and third-party providers, now come with an additional surcharge of seven euros per seat reservation. This is a continuation of the strategy to encourage direct bookings through the company's own website, minimising intermediary costs.
Review of previous price increases
This is not the first time that the Lufthansa Group has adjusted the prices for seat reservations. The group had already made a similar increase in June last year, which indicates a gradual increase in fees. Back then, too, long-haul flights and special seat categories were particularly affected by the price adjustments.
More costs for additional comfort
The Lufthansa Group's new price adjustments show that the trend towards monetizing additional services in air transport is continuing. The new fees can lead to significant additional costs, especially for travelers who want more comfort on longer flights or in certain seat categories.
Nevertheless, the airlines are offering a flexible way to meet the individual comfort needs of passengers. However, it remains to be seen how the price increases will be accepted by customers and whether the increasing additional fees will bring the hoped-for economic success for the Lufthansa Group.