Lufthansa will adopt dynamic award pricing for its loyalty program

Lufthansa is planning to adopt dynamic award pricing within Miles & More, its loyalty program. Wednesday, the carrier confirmed that it would be moving away from a tiered system for calculating the cost of tickets purchased with frequent flyer miles and toward a new standard that prices tickets according to the retail price of the fare. Lufthansa is the first and largest major European carrier to formally adopt dynamic pricing in its loyalty program (though British Airways has hinted at its own plans). The move comes only weeks after United announced its own intent and several years after Delta, the first major carrier to experiment with the pricing, went live. Dynamic pricing is a relatively new approach to selling award seats in the airline industry. <br/>