DreamFolks Shuts Down Domestic Lounge Access: A New Chapter in India’s Travel Perks Industry

DreamFolks, once the biggest name in airport lounge access aggregation in India, has officially shut down its domestic lounge access business. The move marks a major shift in how travelers in the country will experience premium perks and how banks package travel-related benefits for their customers.

A Core Business Comes to an End

For years, DreamFolks was the go-to provider of lounge access, enabling millions of credit and debit cardholders to enjoy premium waiting spaces at airports. This business contributed the vast majority of the company’s revenue — nearly 93% last year. But with banks, airports, and lounge operators changing their strategies, DreamFolks’ model became increasingly unsustainable.

The result: the company has stepped away from its most recognized service, leaving behind only smaller segments such as wellness packages, railway lounge access, and city-based experiences, which together account for less than 10% of its income.

Why the Exit Happened

Several forces pushed DreamFolks into this decision:

1. Banks going direct: Financial institutions that once relied on DreamFolks as a middleman have now begun working directly with lounge operators, cutting out the aggregator.
2. Airports becoming their own aggregators: Major airports across India have started handling partnerships on their own, offering lounge access and related perks directly to banks and credit card issuers.
3. Competition from new players: Companies linked to large airport operators, including those under Adani and GMR groups, began offering lounge services independently, reducing DreamFolks’ role.
4. Revenue and margin pressure: With the majority of its income tied to lounge services, the company faced the risk of financial instability as more contracts slipped away.

Impact on Travelers and Partners

The immediate impact will be felt by frequent flyers who are accustomed to accessing lounges through their bank cards. Many travelers may find that their cards no longer guarantee complimentary lounge entry unless their bank has built new agreements directly with specific lounge providers.

For banks and credit card issuers, the challenge lies in finding equally attractive perks to retain premium customers. Airport lounges have long been seen as a must-have benefit, and replacing that with something of equal value will not be easy.

Meanwhile, lounge operators themselves may see a mixed outcome: while they lose a large distribution partner in DreamFolks, they gain more control by working directly with banks and airports.

The Road Ahead for DreamFolks

Although the company has lost its flagship business, it is not stepping away from the travel and lifestyle segment entirely. Instead, DreamFolks is looking to reinvent itself in several directions:

• City-based services: Introducing partnerships in wellness centers, golf courses, and premium coffee outlets that cater to urban professionals.
• Railway lounge access: Expanding into railway stations, where travel traffic is high and premium services are in demand.
• Global expansion: Exploring markets in Southeast Asia and the Middle East to tap into fresh opportunities.
• Strategic tie-ups and acquisitions: Building new alliances or acquiring smaller players to scale quickly and diversify revenue.

A Larger Industry Shift

The closure of DreamFolks’ lounge aggregation business highlights a bigger change in India’s travel perks industry. For years, cardholders saw airport lounge access as a “standard feature” of premium banking products. That assumption is now being challenged.

Banks may increasingly focus on offering digital-first perks such as exclusive discounts, loyalty points, or wellness subscriptions. Airports and service providers will have to compete for direct partnerships, while travelers will need to adjust expectations around what their premium cards really deliver.

What This Means for Travelers

If you’re a frequent flyer, here’s what to keep in mind going forward:

• Always check whether your card still offers lounge access and with which providers.
• Look out for alternative perks such as airport transfers, wellness vouchers, or priority boarding services.
• Be prepared for a shift from physical perks like lounges to digital and lifestyle-driven benefits.

Closing Thoughts

DreamFolks’ decision to shut its lounge access business is more than a company-level story — it represents a turning point for the entire ecosystem of travel-related perks in India. As the traditional aggregator model fades, the future lies in direct relationships, broader lifestyle benefits, and innovative new ways to enhance the traveler experience.

For passengers, this change may feel like the end of an era, but it could also mark the beginning of more personalized, diversified, and modern perks in the years to come.