The new Lufthansa Group Miles & More debit card is challenging the status quo, and that's fine by me
This article has been sponsored by Currensea. All words and opinions remain my own, and Currensea have not had advanced copy.
Due to the successful launch of the Lufthansa Group Miles & More debit card by Currensea, the launch offer of 5,000 bonus miles has been extended for a limited time. You can apply for the Lufthansa Group Miles & More debit card here.
A couple of weeks ago, I wrote that the card game was shifting from purely points to include some element of status. This was in the wake of Amex lowering the Avios earning potential, but quietly swapping in an ever so slightly better way to earn tier points on the BA Premium Plus.
Earlier this week, the Lufthansa Group Miles & More debit card by Currensea was launched in the UK. Helena's already covered the fees and earn rates in full, so I won't repeat her word for word, but what I do want to do is focus in on the status/loyalty side of this new card, and compare them to what the norm has been, because a few of the ideas on this card are ones we haven't seen a UK card do before, and I think that’s worth taking another look at.
Whilst you're here, if you have any ideas for what you want to see on a card in the future, leave a comment, you never know who may implement your idea!
The idea that everyone should pay the same
They say it's hard to put a price on loyalty. Well as a minimum, your loyalty to the Lufthansa Group is £180!
This is because those of you who hold Senator status get the card fee refunded to them in their first year of holding the card, whilst HON Circle members get their fee refunded to them every year they hold both the card and status.
This harks back to one of the main arguments I made in my original article, that the benefit of status perks from a card can be the tangibility of them. You understand the value of £180, but 10,000 miles, that's a harder figure to attach real value to.
Alongside this, I can imagine the calculation back in Lufthansa HQ is that a lot of people will be thinking, “thank you Lufthansa for saving me £180, it's nice that my loyalty is being rewarded, whilst I’m thinking about it, I need to book another flight… Oh premium economy is only £250 more than economy, oh go on then, I’ve already saved £180”. This may seem an odd comparison at first, but this is where schemes such as the humble supermarket meal deal are so powerful. The meal deal isn’t there to provide you more for your money. It’s there to get you to part with more money. I know this to be true, and yet I can't go in and just buy a sandwich, I must buy a Chicken Club sandwich, egg pot, and a Pepsi Max Cherry... more fool me I guess.
The mileage exchange gives you control
Once a year, miles earned from card spend can be exchanged for Points and Qualifying Points, the two metrics that status in the Lufthansa Group is built on. 5,000 miles buys you 20 of each, up to a maximum conversion of 25,000 miles for 100.
Again, put yourself in the shoes of a frequent traveller who is just looking for the easy life. They've accumulated 20,000 miles and are 80 points short of HON Circle, which gives them access to not just Lufthansa's First Class lounges, but also First Class lounges across the whole Star Alliance network. Having the option to convert a potential future redemption or upgrade, to a years worth of lounge access; that flexibility shouldn't be sniffed at.
Compare this to the British Airways Premium Plus American Express, which as mentioned, from April 2027, will earn tier points on your day-to-day spend. If you're a few hundred tier points away from achieving your tier point goal for Gold status on BA, the only way you are going to hit your status is either by making a mileage run (by flying a frankly unnecessary extra flight) or by putting unnecessary spend through your card. The benefit that the Lufthansa card gives you, is that you're in charge of how you want to use your miles.
Your renewal bonus is in writing
Spend £15,000 in the year before renewal and you get 5,000 bonus miles, automatically, no haggling in the live chat required.
When you consider that broadband providers, insurance companies, and other credit cards by Amex, Barclaycard, or Virgin, simply take your renewal fee, say thank you very much, and give you nothing new in return. Even 5,000 miles is a pleasant way to thank you for another years loyalty for renewing this card. And that's only if you're paying, because if you hold HON Circle you're getting 5,000 free miles as your fee is refunded every year.
The other perks that challenge the norm
The rest of the perks follow the same instinct of trying to do something different.
Once a year you're given a voucher to be used in any Lufthansa Business Lounge worldwide, either for yourself or a travel companion. Now compare this to the usual offering on reward cards in the UK. You're either going to get a Priority Pass, or Dragonpass membership. Both of these will get you access to third-party lounges such as No1 Lounge, Plaza Premium, etc.
In theory a lounge operated by an airline should offer a better and more consistent experience (Laughs in British Airways Galleries Lounge), and therefore you should weight these opportunities greater.
My advice, save this voucher for either the Frankfurt or Munich lounges, as these are the two hub airports of Lufthansa, and will offer you the greatest benefit for your hard earned voucher.
The next two perks are not so much aimed at those who have status, but give those who don't, a taste of the good life. Priority check-in at the Business Class desk at Heathrow is another nice small touch, and hopefully they expand this out to all UK airports they have a presence at, but the block on cardholder miles expiring is another unique perk. Miles & More miles usually expire three years after you've earned them if you don't hold status. This gives those who wish to participate in the programme, but unable to reach the lofty heights of status, a chance to level the playing field in their pursuit for their unicorn redemption: Tokyo in First Class on one of Lufthansa's 747's, maybe their brand new Allegris Suite, or even Leipzig in economy... who am I to judge!
I said the game was changing, and it has
None of these new additions hands anyone status for free. But what it does do is bring new ideas to a UK card market that's mostly been rehashing the same welcome bonus, earn rate, and some version of a Companion Voucher for years.
So whilst some of these perks may not directly benefit you now, I hope that you'll be feeling the benefits in the future, thanks to the new approach to loyalty this card brings.
What I worry is that other card companies/airlines will see these innovations and try to find cost-neutral ways to appropriate some of these ideas. Could they solve their calculations by raising the cost overall for the card, but give Gold members a refund? Whereas Lufthansa gets to bring a brand new card to market, with no prior expectations, this would be hard for an established player to do without provoking righteous fury.
So yes, the Lufthansa Group Miles & More debit card is challenging the status quo.
That's fine by me.
Sam
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