Beyond Borders: Managing Global Customer Experiences at Lufthansa Group

The travel industry is flying high once more. After a sustained period of unprecedented turbulence that rippled across the space caused first by health crises and then by consumer financial anxiety, demand for travel is back and booming.

The landscape is evolving quickly, though, and brands face a challenge keeping pace. Indeed, we stand on the edge of a paradigm shift in the way we research travel, the way we book travel, and how we travel. An accelerated digital transformation has powered these changes and travel companies have been forced to redefine their customer management strategies, and with them, their technology stacks and their legacy methodologies. Now more than ever, budding travellers demand not just personalisation but customisation.

CCW Europe spoke with Heike Birlenbach – a true travel expert with over 30 years of experience in the industry through her work at Lufthansa Group – to get a beat on where things stand for travel brands in this new age. We dive into the complexities of managing a global workforce, the importance of building loyalty, the personalisation imperative, and the potential impact of generative AI.

CCW Europe: You’ve been a part of the Lufthansa family since 1990. During that time, you’ve worked across multiple commercial and customer departments and markets. Talk to us about what keeps someone at Lufthansa Group for more than three decades?

Heike Birlenbach: Lufthansa Group is unique – it’s not only a successful global player with a great purpose to connect people, cultures, and economies, but moreover it has evolved over time to adapt to market needs, and we jointly share common values with the Group’s other companies. I have been very fortunate to work in many different countries and to have had a variety of engaging roles that have together allowed me to gain different perspectives and diverse experiences.

CCW Europe: It was recently reported that all Lufthansa airlines were to be profitable in 2023. That’s a huge achievement. How do you approach managing the customer experience across a global brand that has numerous subsidiary brands within it? What strategies do you employ to empower them all to stand out individually?

HB: The different brands within the Lufthansa Group, especially the airlines within the Group, have a very distinct value and it’s of utmost importance to make them shine and let them grow. We also believe that there are many fields where we can join forces and we do so. In terms of the customer experience – we carefully look at all aspects from a customer’s perspective, ensuring relevant alignment and consistency throughout their journey with us, in addition to the specific needs of the respective airlines. You may call it a “unified vision, distinct identity”: managing individual brand experiences within a cohesive framework.

"We carefully look at all aspects from a customer’s perspective, ensuring relevant alignment and consistency throughout their journey with us."

CCW Europe: Following up from that: Can you share any key challenges that stem from running a cross-market workforce and the solutions you put in place to overcome them?

HB: Managing diverse teams across markets demands cohesive communication strategies and adaptable leadership styles – that’s the foundation. Content wise, it’s important to handle any given priorities based on a joint set of objectives that follow a strategic roadmap.

CCW Europe: Moving on now to the subject of loyalty. Research suggests that airline loyalty programmes are becoming increasingly less influential and impactful, with only 38% choosing their company over other options and only 17% increasing frequency of spend (down from 29% in 2021). In what ways does Lufthansa Group keep its loyalty programme – Miles & More – fresh and relevant?

HB: The Lufthansa Group consistently innovates its loyalty programme, Miles & More, to stay relevant in a highly competitive market. The new Statusprogramm, to be launched in January 2024, will introduce enhancements and new offerings that adapt to changing consumer preferences. We believe in delivering unique and personalised experiences to our loyal members. We have expanded the Miles & More programme to include a wider range of exclusive travel opportunities and partner collaborations, ensuring that our members receive added value and benefits. Additionally, we have integrated sustainability rewards, such as bonus miles for eco-friendly travel choices, aligning our programme with evolving customer priorities.

CCW Europe: And just sticking with loyalty again, as we look to the future, how do you see the loyalty ecosystem evolving over the next few years and what are you doing to stay ahead of the curve?

HB: Anticipating significant shifts in loyalty dynamics, we’re redefining our approach to ensure a more personalised loyalty programme. By leveraging established values like simplicity and reliability, while integrating new aspects such as personalised experiences and enhanced connectivity, we aim to foster deeper customer bonds. Our commitment lies in leading this evolution by prioritising personalisation and meaningful engagements – we’re striving to set new standards for loyalty in the industry.

"Anticipating significant shifts in loyalty dynamics, we’re redefining our approach to ensure a more personalised loyalty programme."

CCW Europe: Pivoting now to explore the technology powering your operation. We’re entering a whole new world of digitally enabled travel, with a range of applications driving innovation across every stage of the customer journey. So, accordingly, can you break down how Lufthansa Group airlines are utilising technology today to deliver branded touchpoints when and where travellers want (and need) them.

HB: The Lufthansa Group has set itself the goal of providing customers with improved digital access and a smooth travel experience throughout the entire travel chain. The Lufthansa Group app, which was launched last year and has been continuously developed, achieved a rating of 4.6 out of 5 possible stars in the Apple App Store. This app offers customers optimised access to travel information and personalised offers, empowering them to make their travel easier and more individualised. A special feature is the "Travel ID", a personal customer profile that gives customers access to all Lufthansa Group Passenger Airlines portals and the Miles & More programme. Customers can make refund claims and rebook online, and easily apply for vouchers for hotels and rail travel. In the event of baggage irregularities, an online reporting option is available to reduce, or even avoid, waiting times at the airport.

These developments have enabled Lufthansa Group employees to provide better information at the airport, on board our planes, and in the call centers, and thus respond more individually to the needs of customers. Explanatory videos and a feedback function for customers have also been introduced, and in 2024, the Lufthansa Group plans to develop simple and intuitive solutions for customers throughout the entire travel chain. This is just one example of how we embrace technology to increase customer benefits.

CCW Europe: And where do you sit with regards to generative AI? Skift studies show that this technological tool represents a whopping $28 billion-plus opportunity for players in the travel space. Where do you see generative AI impacting the industry and where is it coming into play in your organisation?

HB: The integration of artificial intelligence will play a key role in making the digital experience even more natural. The Lufthansa Group started working with generative AI in a customer context at the beginning of 2023 with the first announcement and availability of OpenAI services. For us, data protection is the top priority. Hence, what we always must ensure is compliance with regulations, local laws, and whatever rules there are ethically or culturally.

Our current work with generative AI is focused on multiple areas. It’s about content creation, it’s about the servicing aspect, and it’s about automation when it comes to text-related complexities or challenges. We’re feeding the system with our internal regulations, rules, handbooks, guidelines, and standard operating procedures to train the model and give our internal employees access to it in a very straightforward way.

"Our current work with generative AI is focused on multiple areas. It’s about content creation, it’s about the servicing aspect, and it’s about automation when it comes to text-related complexities or challenges."

CCW Europe: Last question, Heike: What’s next in the world of customer experience and customer management in the travel industry?

HB: First of all, customer-centric approaches remain key to success, and we’ll continuously invest in this area to respond quickly to changing needs and inspire our guests. Future trends emphasise even more personalisation, a focus on sustainability, and technology integration for enhanced experiences. We will look to connect the dots along the journey as it’s all multidimensional – we call it the “connected experience” in physical, human, and digital terms. The airline industry successfully adapted in the past and will surely do so in the future and will retain its fascination.