How the Lufthansa Innovation Hub Is Shaping the Future of Aviation

The Lufthansa Innovation Hub (LIH) has been doing pioneering work for the travel industry for over ten years. This industry is in a constant state of flux, and the LIH attempts to recognize these changes at an early stage while developing solutions that make travel easier, more comfortable, and more enjoyable. A team of around 60 employees currently works in the heart of Berlin with a mission of “taking travel to new destination”.

As Director Strategic Innovation and Intelligence, Tino Klaehne works with the LIH to develop strategies and new business models for the industry. He and his team keep a close eye on the aviation market and know the trends. One example, Klaehne says, is passion travel, which is travel to locations from movies and TV series, or to concerts and sporting events.

“It's a long way from an idea and research to a finished product,” says Klaehne. “To drive change in the industry, you have to allow new ways of thinking,”. Thinking outside the box of the industry is necessary — and that, in turn, requires experts from all fields, not just aviation: “We have employees who previously worked for start-ups or market-leading online retailers, and they bring their very different perspectives and experiences to the table.”

Each project always begins with fundamental research to identify current challenges in the industry. The analyses are published in articles and reports in the Travel and Mobility Tech Newsletter, which is produced by LIH's Strategic Intelligence Team.

From the idea to the start-up

Many of the ideas from the LIH are put into practice. Several projects have even been successfully spun off and become independent. One example is Cosmos. The start-up uses technologies like machine learning to improve collaboration between airlines and ground service providers such as baggage handlers at airports. In future, for example, waiting times at the baggage carousel and check-in can be reduced. This is because the tool allows processes to be better coordinated.

Another successful spin-off is Squake. The software enables travel companies – from airlines and online travel agencies to caravan rental companies – to offer sustainable products to their customers. The calculation and offsetting of CO2 emissions can be quickly and easily integrated into web and app offerings via the digital interface. It is a step toward more sustainability in the travel industry.

Uptrip was launched in collaboration with Miles & More. The app focuses on integrating Web3 technologies, such as blockchain and gamification elements, into the popular loyalty program. The app gives Lufthansa Group Airlines passengers the opportunity to exchange their boarding pass for unique trading cards, which they can then convert into NFTs and store in their own crypto wallets. These trading cards can be combined into different collections, which in turn can be redeemed for rewards — making earning miles even more fun.

What can we expect in the future?

And what about supersonic airplanes or air cabs, the kinds of examples that are usually used to describe innovation in aviation? “There is no one big innovation that will change flying forever from one day to the next,” says Klaehne. “But we are simultaneously working on many ideas that will lead to a better experience for travelers on the one hand and make the Lufthansa Group fit for the future on the other.”

You can find more information about the Lufthansa Innovation Hub on its website.