Airport lounges have evolved from being elitist to being more approachable. What took place? Travelers are swarming the lounges in search of free food and beverages, as well as a comfortable place to sit and charge their electronics. The issue? Nearly all other travelers are also doing that!
Complimentary khana (free food) in two rupees was made popular by growing shorts and reels. Passengers who were previously eligible but aware also embraced the lounge culture at Indian airports.
When the lounge first opened, it was intended to be a private space for business travelers who needed some alone time to unwind, work, and grab a bite to eat before their flight. Making people productive at the airport was the plan. Instead, it became a place to overindulge in cold beverages and food while charging electronics. The rise in low-cost airlines, which generally forbid passengers from eating warm food or a full meal, is another contributing factor.
This has meant that visiting airport lounges with an upscale credit card and spending a lot of money to gain access to these once exclusive areas is no longer necessary for the elite few; instead, thousands of people now make frequent trips there. This has made things difficult for credit card companies as well as airports.
The issuing banks and card companies began providing lounge access as a perk to boost credit card penetration. Things that were previously exclusive to certain frequent flier statuses or premium service classes were suddenly made available to specific cards. However, given that admission fees are only Rs 2, how does the business actually function?
In exchange for the cardholder’s “free” admission, the business reimburses an airport lounge a pre-negotiated cost each time the cardholder enters the lounge. The lounge will then logically profit more if the visitor who was granted “free” access chooses to make a purchase while there.
Usually, a combination of card issuers like HDFC, SBI, and ICICI and card networks like Visa, Mastercard, Diners, and Rupay are used to pay for the transaction. In India, the use of credit cards is still relatively new, with only 6% of people estimated to have one. One strategy for increasing this penetration is to offer freebies. Eventually, the card companies want to turn a profit by charging interest on late payments or converting payments to EMIs for a fee.
The majority of credit card issuers have begun to devalue their products during the last few months. This also includes a cap on the number of visits, regardless of spends, and a minimum spend to qualify for lounge access in the following quarter (spend first, use later). There is no getting around the fact that free lounge access is still a feature of some credit card products on the market. Although many people have several credit cards, this should help shorten the lineups.
But it’s not a guarantee!
These days, a significant portion of lone travelers can be seen at the food court, their laptops open and running Excel sheets rather than movies—a classic business traveler.
