Hey {{first name | reader}},

Happy Friday!

Today we have a nice mix: Dan's newest video, another hotel points sale, and Lufthansa doing very Lufthansa things.

Here's what's inside today's post:

Dan's newest video made me want to go to Iceland and try this for myself.

Icelandair has always been an interesting airline to me because the business model reminds me a lot of Copa. A hub-and-spoke carrier connecting two regions through a very strategically located airport, with a product that leaves something to be desired but makes a lot of sense when the price and routing work out.

Copa connects the Americas through Panama City. Icelandair connects North America and Europe through Keflavík.

What I find interesting about Icelandair is the whole package. The stopover possibility in Iceland, a more distinctive onboard identity, and a Saga Premium product that is not a true long-haul business class but looks like a very comfortable way to cross the Atlantic if expectations are in the right place.

And that is exactly the key: expectations.

If you book Icelandair expecting Qatar Qsuites, you will be disappointed. But if you think of it as a very good premium economy or domestic first-class-style product with better food, Wi-Fi, lounge access at Keflavík, and the option to build in an Iceland stopover, it may become an interesting option.

Watch Dan's video and decide for yourself. Would you book it?

Apparently every hotel program decided this was the week to sell points.

We already covered Hilton and Marriott earlier this week, and now World of Hyatt is also running a sale. Hyatt is selling points with a 20% discount, bringing the price down to about $20.80 per 1,000 points.

Hyatt points can still be very valuable in the right situation, and what makes Hyatt different from Hilton and Marriott is that it still has a published award chart. Hotels are assigned categories from 1 to 8, and the category determines the points price. That predictability has always been one of Hyatt's biggest strengths.

But Hyatt made a rough change recently. Instead of the old three pricing levels, off-peak, standard, and peak, the program moved to more dynamic pricing within each category. The result is that top Category 8 properties, which used to max out at 45,000 points per night, can now go as high as 75,000 points. That is a significant devaluation at the high end.

So should you buy Hyatt points right now?

Only if you already have a specific redemption in mind. At the current price, buying 30,000 points costs about $624. If you can use those points for a hotel that would otherwise cost $900 or more in cash, the math works. If the cash rate is $500, buying points makes no sense at all.

A lot of hotels will actually be cheaper in cash if they are hitting the upper end of the new dynamic pricing ranges. Check the specific property, the specific dates, and the specific award price before buying anything.

Lufthansa is becoming the king of making its own product unnecessarily complicated.

Allegris business class already has multiple seat types: Classic Seat, Business Class Suite, Extra Space Seat, Privacy Seat, and Extra Long Bed. Some are free depending on fare and status, while others cost extra.

In theory, I understand the idea. Not every seat on those aircraft is the same. Some have doors, some have more space, some have more privacy, and some have a longer bed. Offering different options at different prices is not crazy.

But Lufthansa has turned this into a product maze, and now they are going further.

Lufthansa Group recently introduced two new short and medium-haul seat categories: First Row Seat in business class and Back Seat in economy.

Yes. Back Seat. That is the actual name.

The Back Seat is a paid seat assignment in the last rows of economy, priced below a regular Classic Seat. So instead of just charging more for better seats, Lufthansa is now branding the back of the plane as its own distinct paid seat product. Come on.

I understand the logic. Some passengers just want the cheapest possible seat assignment to sit together. Fine. But the branding is almost funny. Imagine paying to proudly select: Back Seat.

My bigger concern is what this trend says about the direction of Lufthansa's product strategy.

A paid business class ticket should not feel like buying a budget airline bundle where you need to decode which seat is "classic," which has privacy, which has a longer bed, which has extra space, and which one costs extra on top of all that. That is exhausting for passengers, and it erodes the feeling of actually being in business class.

Giving passengers more choice is good when the product is clear. This is not that.

Lufthansa, I am not liking what you are doing. I needed to get it out of me.

That's it for today. Enjoy the weekend, and more deals, news, and trip ideas coming your way on Monday.

Catch you in the clouds, 

Tomi from Points Master

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