I do not really understand Lufthansa’s upgrade bidding system.
In the past I have successfully gotten upgrades to premium economy or business by bidding slightly above the minimum, sometimes only €10 to €20 more on long haul flights.
This time I increased my bid significantly, about €200 above the minimum for both premium economy and business class. Despite this, both bids were rejected.
What surprised me is that the flight was very empty. Economy passengers had whole rows to themselves, and even business class looked far from full.
I do not understand why Lufthansa would decline additional revenue in this situation. Is the cost of providing the upgraded service (meals, seating, miles, etc.) high enough that they prefer to keep seats empty rather than accept higher bids?