DreamFolks Services, the prominent airport lounge service aggregator in India, could soon see a major loss in its business as major banks and card services companies are seeking other options.
According to a PTI report, Axis Bank, ICICI Bank, and Mastercard are looking to partner directly with the airport lounge operators, bypassing the aggregator DreamFolks Services. Other banks and card companies can potentially also follow suit.
DreamFolks Services acts as an aggregator between banks, card companies, and airport lounge operators like Adani, GMR, and TFS, and claims to have a 90 percent share in the domestic lounge services for the credit and debit card holders in India.
DreamFolks: What is the issue?
Last year, DreamFolks faced disruption in its lounge access services at its 49 lounges across 43 airports, leading to a temporary closure. Thousands of air travellers who are given lounge services by the card companies and banks were unable to access the lounges of DreamFolks.
At the time of the incident, DreamFolks said, “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.”
While the issue was resolved the next day, it made the banks and card companies realize their dependency on one company, leading to exploration for alternative options.
Other options for banks and card companies
While DreamFolks acts as an aggregator, the three major airport and lounge operators, GMR, Adani, and TFS, together manage 80 to 85 percent of foot traffic through the domestic lounges in India. The banks and card companies are looking to work directly with these lounge operators.
According to a PTI report, American Express transitioned to Adani Digital for the lounge access service at the seven airports managed by Adani.
DreamFolks’ response
Addressing the reports on the spat between the company and its client, according to a CNBC-TV 18 report, DreamFolks has said that there has been no cancellation in their partnership with clients. The company said that its relations with all its clients remain strong.