Major Indian banks and card networks, such as ICICI Bank, Axis Bank, and Mastercard, are planning to move away from aggregator DreamFolks Services Ltd and form direct partnerships with airport lounge operators, reported PTI quoting sources. This move is likely to be followed by other banks, said the report.
DreamFolks is a travel and lifestyle services aggregator providing lounge access at various airports. It experienced a temporary service disruption on September 22, 2024, affecting lounge access for thousands of customers from major banks and card networks. The report said that the issue was resolved the next day, however, the banks and card networks are exploring other alternatives following the disruption.
DreamFolks is in the list of major airport lounge operators in India, and it claims to command 90% market share in the country’s domestic lounge access market for debit and credit card holders.
Following a service disruption in September 2024, thousands of flyers across India faced issues accessing airport lounges due to the sudden closure of at least 49 lounges across 34 airports. The disruption, affecting major banks and card networks, led to widespread inconvenience. Travel Food and Services, a food and beverage master franchisee managing airport lounges in Kolkata and Chennai, reportedly threatened legal action against DreamFolks, the aggregator behind the disruption.
Adani, which operates seven airports in India, had stated, “Passengers at airports across India have been experiencing disruptions in lounge access. This is due to the unexpected suspension of services by DreamFolks Services Ltd, a lounge access provider partnered with several banks, in violation of its service agreements with the affected airports.”
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Notably, operators like GMR, Adani, and TFS manage around 80-85% of the foot traffic in airport lounges, with DreamFolks serving as the third-party aggregator for these lounges.
In its September 22, 2024 statement, DreamFolks described the situation as “a temporary disruption in services” and emphasized that all its “contractual agreements remain in full force,” adding that it was “fully compliant with our obligations and are executing our services accordingly.”
The next day, the company said, “the team has successfully resolved the integration issue at Adani Airports, ensuring seamless acceptance of all eligible cards at the lounges moving forward.” “Through meticulous troubleshooting, we have implemented a robust solution that guarantees smooth transactions for passengers and stakeholders alike. As a result, all eligible cards, including credit, debit, and membership cards will now be accepted at the lounges,” the statement added.
The service disruption led certain banks, including American Express, to shift to Adani Digital for lounge access at airports operated by Adani, said the report, adding, lounge operators began coordinating directly with banks to ensure uninterrupted services for passengers.