The End of an Era: Dreamfolks’ Departure from India’s Domestic Lounge Market
Dreamfolks Services Ltd, once the undisputed leader in India’s airport lounge access industry, has pulled the plug on its domestic lounge services. This move surprised many frequent flyers and even rattled the stock market, with Dreamfolks’ shares dropping 5% on the National Stock Exchange shortly after the announcement.
For years, Dreamfolks was the go-to company for lounge access, operating as a bridge between banks and airport lounges. With a near-monopoly, they provided cardholders with seamless entry into lounges across the country. But now, with the sudden shutdown, travelers and investors are left asking: Why did Dreamfolks shut down its airport lounge services in India, and what does this mean for you?
The Battle for the Lounges: A Shift in the Industry
To understand why Dreamfolks walked away from a business that contributed more than 90% of its revenue, you need to look at how the industry itself has changed.
For years, Dreamfolks worked as an aggregator. Banks would tie up with the company, which in turn partnered with lounges at airports, allowing customers with premium credit or debit cards to access those lounges. It was a win-win model, as cardholders enjoyed extra perks while banks boosted their value proposition.
But then came a shift. Airport operators like GMR (Delhi) and Adani (Mumbai and Lucknow) realized they could take over the aggregator role themselves. Instead of depending on Dreamfolks, they began signing direct partnerships with banks. This direct-to-bank model eliminated the middleman, offering better financial margins for both lounges and banks.
Soon, major lounge players like Encalm and Adani’s Semolina Kitchens started pulling out of Dreamfolks’ network. Following this, heavyweight banks such as Axis Bank and ICICI Bank also exited partnerships with the company. With that, the foundation of Dreamfolks’ business model began to crumble.
What This Means for Your Lounge Access
If you’re a traveler who has relied on card-based airport lounge access through DreamFolks, this change could hit home. Simply put, if your card’s lounge benefit was powered by Dreamfolks, you may no longer be able to use it for lounge entry in India.
The silver lining? Many banks are already working on direct tie-ups with lounge operators. So while the service disruption might feel immediate, it doesn’t mean lounges will vanish from your travel experience forever. Still, until your bank confirms its new arrangement, you may find yourself waiting in the airport terminal rather than relaxing in a lounge.
For frequent flyers, this is more than just an inconvenience—it’s a direct change to how travel comfort has been offered for years. The best advice? Contact your bank directly to check the status of your lounge benefits.
The Road Ahead for Dreamfolks
The biggest question now is, what happens to Dreamfolks?
The numbers show the challenge—93% of Dreamfolks’ revenue came from the domestic lounge business. Without it, the company must reinvent itself to survive. On a recent analyst call, Chairperson Liberatha Kallat outlined a new strategy: Dreamfolks plans to expand into a range of premium travel and lifestyle services.
Some of these include:
Airport pick-up and drop-off in luxury cars
Visa application assistance
Golf access and wellness packages
Railway lounge access
Social clubs and coffee chain partnerships
The company also hinted at strategic acquisitions to speed up this transition. While their international lounge access services will continue, these make up only a small portion of their overall business today.
The Future of Airport Services and Investor Confidence
For investors, Dreamfolks’ sudden pivot is both a risk and an opportunity. On one hand, losing over 90% of revenue in one go is a severe blow, and the 5% stock drop reflects this concern. On the other, if the company successfully establishes itself as a comprehensive travel services provider, it could create a more diversified and stable business in the long run.
But the challenge is enormous. Rebuilding trust with banks, airlines, and customers while also competing with strong airport operators will not be easy. Analysts are cautious, watching whether Dreamfolks can turn bold plans into sustainable growth.
From a broader perspective, this story reflects how the travel industry is evolving. The model is shifting from B2B (business-to-business) aggregation to more direct B2C (business-to-consumer) partnerships. Airport operators and banks are realizing they don’t need an intermediary to connect with travelers, and this change is rewriting the rules of the game.
What It Means for Indian Travelers
So, why does all this matter for you as a traveler? The shutdownof Dreamfolks’ airport lounge services in India represents more than just a corporate shake-up. It marks a turning point in how travel perks are delivered to customers.
For now, you may face some uncertainty about lounge access benefits on your bank cards. Some banks will adapt quickly, while others may take time. Either way, this transition highlights the need for travelers to stay updated about their card benefits and explore alternate lounge access programs.
Meanwhile, for Dreamfolks, this is a critical moment. The company must prove it can adapt, survive, and perhaps even thrive in a highly competitive travel services market.
Final Thoughts
The end of Dreamfolks’ domestic lounge business signals both disruption and opportunity. For travelers, it’s a reminder that the perks we take for granted can change overnight. For Dreamfolks, it’s a do-or-die situation where reinvention is the only path forward.
In the coming months, we’ll see whether Dreamfolks Services Ltd can transform from being just a lounge aggregator to becoming a premium travel services giant. Until then, keep an eye on your card benefits and prepare for a new era in how airport lounge access in India is delivered.
