Corporate customers are a vital cornerstone of the sales strategy

Investments by Lufthansa Passenger Airlines were concentrated on the fleet, ground and in-flight products, and the expansion of the service infrastructure at selected airports. Examples include the new Europa cabin and the introduction of the new First Class product, which were both rated very positively by customers. The seat comfort in Economy Class was improved again on long-haul routes and a new entertainment system brought in. The offer of the internet system FlyNet was expanded in 2011, so that by the end of the year customers on over 48 aircraft were able to enjoy the service on routes to North America and the Middle East.

The largest Lufthansa Lounge in the world, covering some 1,800 square metres, was opened in Frankfurt in the summer. This new Senator Lounge offers its guests the first Senator Spa as well as an exciting City Light Bar with a view onto the apron.

The greater presence planned in Berlin as part of the new service concept presented in November will also help to put Lufthansa in a strong position here compared with its national and international competitors. A total of 23 aircraft from the Lufthansa Passenger Airlines Airbus fleet will fly on routes to and from Berlin. A package of measures is intended to cut unit costs there by one third compared with the average in European traffic.

Sector origin of Lufthansa Passenger Airlines’ corporate customers (pie chart)

The successful sale of increased capacity was supported by extensive marketing activities such as the introduction of a new pricing concept for inner-German traffic (one-way prices from EUR 59), the implementation of a new booking class structure, the focused incentivisation of agencies for short-term travel and the expansion of the existing corporate customer portfolio in the area of small and medium companies.

This successfully enabled revenue to be increased in the corporate customer segment. Revenue from corporate customers rose by a total of 12 per cent in 2011. With corporate business accounting for 40 per cent of total revenue, Lufthansa Passenger Airlines remains the leader in the industry. The company can point to a very balanced mix of industries in its corporate customer relations (see chart). In 2011 the automotive industry pulled into first place thanks to its strong exports.

The high proportion of business travellers also meant that First and Business Class revenue’s share of traffic revenue came to around 39 per cent, which is roughly on par with the previous year’s strong performance, although for structural reasons capacity growth had a far greater impact on the Economy Class. On long-haul routes the premium share was even 50 per cent (previous year: 49 per cent).

From summer 2011 further sales activities were initiated to combat the effects of the global economic downswing, including the early acquisition of price-sensitive business to minimise risks to load factors and the activation of volume sales channels (e.g. tour operators, consolidators). With this and increased marketing via the Lufthansa website, online ticket sales were lifted sharply to around 28 per cent (+2 percentage points).

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Compare key figures over several years. more