Dreamfolks Faces Headwinds as Banks and Airports Rethink Lounge Access Partnerships

Image Source: Travel Span

Dreamfolks Services Ltd, India’s dominant airport lounge aggregator, is facing mounting pressure as banks and airport operators explore direct partnerships, potentially threatening its near-monopoly status. The company, which facilitates credit card-based lounge access across 100% of domestic lounges, is now grappling with operational disruptions and strategic realignments.

Key Highlights:

ICICI Bank and Axis Bank have discontinued select lounge access programs with Dreamfolks, prompting concerns over revenue loss and client retention.
Adani Airports, which operates lounges at seven major Indian airports, has shifted to direct card-based access, bypassing intermediaries like Dreamfolks.
A recent IT outage in September 2024 disrupted lounge access nationwide, exposing Dreamfolks’ reliance on middleware systems and triggering reputational damage.

Strategic Challenges:

Dreamfolks earns revenue per passenger swipe, making it highly dependent on credit card-linked access. With banks now exploring direct integrations, this model faces disintermediation risk.
The company’s promoter has alleged pressure tactics from airport operators, including threats to deny access unless banks bypass Dreamfolks.
Despite denials of partnership cancellations, the company acknowledged that the impact of recent changes could be material and is evaluating mitigation strategies.

Outlook: Dreamfolks is attempting to diversify its revenue streams by onboarding enterprise clients and expanding into non-lounge services like airport transfers and wellness. However, with 93% of revenue still tied to airport lounges, the company must urgently adapt to retain relevance in a rapidly evolving travel-tech ecosystem.

Sources: The Hindu BusinessLine, Moneycontrol, Trade Brains