Banks removing Lounge benefits from non-premium cards

[Akash Topder]

you must not have seen the crowding at airports then
i have seen people emptying their wallets and trying all their cards oneby on to check for free access.
moreover i have seen people give a visa card instead of mastercard when told that a 25 rs charge will be created to validate the card and it is refundable as mentioned by that guy.
if LTF or non premium cards start giving access just like premium cards there is no difference between the both

There is definitely difference. I have already stated that. It's unlimited for premium ones. Also premium ones have free golf and spa sessions that entry level cards don't have. Also meet and greet etc. There are a lot of things that makes premium cards premium. A lot of differentiating factors are there. And removing lounge access to make crowding less is a proper axe in the leg move for banks. They won't remove it from the small cards unless the card is highly rewarding like SBI CB. Lounge access is USP for entry level cards even though 90% of the people don't use it ever. Some people are just salty because they're thinking that they've lost the superiority and exclusivity of being in a lounge via premium cards because entry level cards can access it.

 

[simplegarv]

Banks buy 1 lounge access for 400-500 rupees. So yeah it's true that for 4 lounges it's 2000 rupees but 90% of people don't use that. This is the business model for small cards. Banks know that most people won't use it but some people will use it 1-2 times. This is how they are able to give lounge access to small cards.

That's the main thing sir, bank's lured people with lounge access so that they can have as many cards as possible. Now, as you are aware of the fact that people are lazy to close the cards when banks will remove the lounge access.

In my post I am trying to point out the fact that everywhere Companies are doing like this. Eg. CRED when it was launched it heavily rewarded the users but now people have a habit of using it they are giving Chillars.

 

[Deleted member 11974]

There is definitely difference. I have already stated that. It's unlimited for premium ones. Also premium ones have free golf and spa sessions that entry level cards don't have. Also meet and greet etc. There are a lot of things that makes premium cards premium. A lot of differentiating factors are there. And removing lounge access to make crowding less is a proper axe in the leg move for banks. They won't remove it from the small cards unless the card is highly rewarding like SBI CB. Lounge access is USP for entry level cards even though 90% of the people don't use it ever. Some people are just salty because they're thinking that they've lost the superiority and exclusivity of being in a lounge via premium cards because entry level cards can access it.

unlimited is just an on paper offering
on an average majority of people with super premium cards may end up travelling once to thrice a month if not a person who has buinsess travel.
Now as you mentioned about being salty it is actually true.
Because if i have to stand in a line for a lounge access when i know i will get a free entry on my card it becomes frustrating to see people with 10-15 cards checking ki lounge access milega ki nahi.
So from the customers pov non premium cards not having a lounge access is somewhat a convenience because if i also have to stand in a queue to gean entry after paying a lakh in fee and a person with an LTF card gets it as well what is the difference.
meet and greet is only on 2 cards as of now reserve and magnus
golf is almost on non premium cards as well idfc select
spa is also there on idfc wealth
so ek saath to nahi nikal lenge vo because card spendings will drastically go down
what they might implement is that abhi 5k per month spend see they might increase it to 10k or much higher for a free access

 

[srikant]

Because if i have to stand in a line for a lounge access when i know i will get a free entry on my card it becomes frustrating to see people with 10-15 cards checking ki lounge access milega ki nahi.

I think they should have some sort of pre-booking. Nothing wrong with entry-level cards providing access if the economics somehow works out for the banks. Like you mentioned, most people access lounges way less often than their cards allow, so I doubt if it's costing the banks too much.

Early June I specifically called up PNB about my Platinum's lounge access -- and at the Hyderabad lounge the queue at the entrance in 1st floor itself was so much that I just bunked it. Over a quarter has passed and I haven't smelled an airport.

 

[arun4455]

I think they should have some sort of pre-booking. Nothing wrong with entry-level cards providing access if the economics somehow works out for the banks. Like you mentioned, most people access lounges way less often than their cards allow, so I doubt if it's costing the banks too much.

Early June I specifically called up PNB about my Platinum's lounge access -- and at the Hyderabad lounge the queue at the entrance in 1st floor itself was so much that I just bunked it. Over a quarter has passed and I haven't smelled an

I believe problem is not the costing. The other problem is the offering to the premium customers. It is getting the difficult for premium customers to enter the lounge and quality of the food is also deteriorating. May be that are taking some steps to keep it a premium offering.

 

[Akash Topder]

unlimited is just an on paper offering
on an average majority of people with super premium cards may end up travelling once to thrice a month if not a person who has buinsess travel.
Now as you mentioned about being salty it is actually true.
Because if i have to stand in a line for a lounge access when i know i will get a free entry on my card it becomes frustrating to see people with 10-15 cards checking ki lounge access milega ki nahi.
So from the customers pov non premium cards not having a lounge access is somewhat a convenience because if i also have to stand in a queue to gean entry after paying a lakh in fee and a person with an LTF card gets it as well what is the difference.
meet and greet is only on 2 cards as of now reserve and magnus
golf is almost on non premium cards as well idfc select
spa is also there on idfc wealth
so ek saath to nahi nikal lenge vo because card spendings will drastically go down
what they might implement is that abhi 5k per month spend see they might increase it to 10k or much higher for a free access

IDFCs USP is being LTF yet premium so they're different than other banks in that. But removing access isn't a solution. Min usage could be a solution but not the proper one
Best solutions are 1. Increasing the size of the lounges and also optimising the existing space.
2. Different entry and maybe even different area of seating for premium and super premium card holders.
3. Exclusive lounges for premium and super premium card holders.

 

[Deleted member 11974]

I think they should have some sort of pre-booking. Nothing wrong with entry-level cards providing access if the economics somehow works out for the banks. Like you mentioned, most people access lounges way less often than their cards allow, so I doubt if it's costing the banks too much.

Early June I specifically called up PNB about my Platinum's lounge access -- and at the Hyderabad lounge the queue at the entrance in 1st floor itself was so much that I just bunked it. Over a quarter has passed and I haven't smelled an airport.

the lounge proposition by banks on non premium cards is somewhat similar to mukesh ambanis jio strategy
get people addicted to it for free
then when they cant leave it hike prices
also as you mentioned pre booking,it is available via dreamfolks website
but the crowd is too huge at any given point of time that even skipping line to go to the front becomes difficult.
In the past 3 years cards issued have skyrocketed while fees being minimal or 0 and the no of lounges also hasn't increased at that pace.
cost is not an issue as per usage ends up costing 100-500 per head depending on location
now what banks should do in tieup with dreamfolks is either create new lounges and segregate them accordingly to footfall i:e premium cards and entry level cards.
or the second thing they can do is make sure that the entry level card holder spends an amount in the previous month which covers their cost of providing access to the lounges via mdr

 

[Deleted member 11974]

IDFCs USP is being LTF yet premium so they're different than other banks in that. But removing access isn't a solution. Min usage could be a solution but not the proper one
Best solutions are 1. Increasing the size of the lounges and also optimising the existing space.
2. Different entry and maybe even different area of seating for premium and super premium card holders.
3. Exclusive lounges for premium and super premium card holders.

i do not see how idfc is premium in any aspect
after the recent devaluations and capping someone might as well compare it to a mid level paid card

 

[arun4455]

IDFC has already devalued and put a mandatory spend clause to access the lounge. Soon they might increase this limit.

IDFCs USP is being LTF yet premium so they're different than other banks in that. But removing access isn't a solution. Min usage could be a solution but not the proper one
Best solutions are 1. Increasing the size of the lounges and also optimising the existing space.
2. Different entry and maybe even different area of seating for premium and super premium card holders.
3. Exclusive lounges for premium and super premium card holder

 

[tchawla2]

To be honest, thank God...

 

[CardScout]

IDFCs USP is being LTF yet premium so they're different than other banks in that. But removing access isn't a solution. Min usage could be a solution but not the proper one
Best solutions are 1. Increasing the size of the lounges and also optimising the existing space.
2. Different entry and maybe even different area of seating for premium and super premium card holders.
3. Exclusive lounges for premium and super premium card holders.

All your solutions require good amount of investing. It's not cheap to rent space in the airport. Thus lounge companies have to put good amount in it as well.

I am happy that Bangalore T1 Domestic airport has created 2 lounges, with 1 giving basic cards access too, while other is catering to premium & super premium cards, along with PP and Dreamfolks (which are usually used for international purpose).
Obviously the premium lounge has better seating, much better food, more facilities and much better service.
Hopefully it's followed in other airports too.

 

[srikant]

the lounge proposition by banks on non premium cards is somewhat similar to mukesh ambanis jio strategy
get people addicted to it for free
then when they cant leave it hike prices

But lounges simply aren't "addictive". They can't be! Even frequent flyers spend only a minuscule part of their lives at airports -- which anyway will be air-conditioned with free, unlimited, safe and comfortable access to drinking water and toilets, lounge or not.

 

[simplegarv]

IDFCs USP is being LTF yet premium so they're different than other banks in that. But removing access isn't a solution. Min usage could be a solution but not the proper one
Best solutions are 1. Increasing the size of the lounges and also optimising the existing space.
2. Different entry and maybe even different area of seating for premium and super premium card holders.
3. Exclusive lounges for premium and super premium card holders.

If you consider IDFC an premium thing, you're in a big dilemma brother. People only use IDFC for it's bank offers or some other perks like RSA.

 

[Deleted member 11974]

But lounges simply aren't "addictive". They can't be! Even frequent flyers spend only a minuscule part of their lives at airports -- which anyway will be air-conditioned with free, unlimited, safe and comfortable access to drinking water and toilets, lounge or not.

with the population explosion the country is facing if you have a flight during peak hours you would be required to depart at least 2-3 hours before the flight.
now after going through a litreal struggle reaching the airport you reach the lounge to see it crowded as well.It becomes a bit irritating
the whole point of a lounge is to relax freshen up have some food
ab khaane ke luye hi 15 min line nikla to lounga hai ki bhandara

 

[Akash Topder]

If you consider IDFC an premium thing, you're in a big dilemma brother. People only use IDFC for it's bank offers or some other perks like RSA.

As premium as they can give by being LTF. It may not be absolutely premium but as you're not giving a penny for those cards they're value for money for some 'premium' features even though there are minimum spent criteria.

 

[Akash Topder]

All your solutions require good amount of investing. It's not cheap to rent space in the airport. Thus lounge companies have to put good amount in it as well.

I am happy that Bangalore T1 Domestic airport has created 2 lounges, with 1 giving basic cards access too, while other is catering to premium & super premium cards, along with PP and Dreamfolks (which are usually used for international purpose).
Obviously the premium lounge has better seating, much better food, more facilities and much better service.
Hopefully it's followed in other airports too.

Lounge companies can invest that. They're actually in huge profits even though airport isn't cheap. Separate seating arrangements will be slowly there in more lounges. They can arrange that.

 

[simplegarv]

As premium as they can give by being LTF. It may not be absolutely premium but as you're not giving a penny for those cards they're value for money for some 'premium' features even though there are minimum spent criteria.

Sir, admit it the criteria is different for everyone.

 

[NikTravelEnthusiast]

This is a never ending debate.

But we have to admit that there is overcrowding in lounges. I cant speak statistics wise, but if we can compare the 'ratio of number of Air travelers incresed' to 'number of people increased visiting lounge' in recent 4 to 5 years, definately I can quote that the second ratio must have shooted up drastically.Lounege acess has gained tremendous popularity. And its the hot selling cake for credit card companies.

I am not a frequent traveller, but I travel 2 to 3 times in a year. But the line outside the lounges is unbelievable. I have seen aged persons standing in long queue.And the line is ever increasing.

Lot can be improved to tackle this. Many people are already giving suggestions. But I see it far from implementation.So I came up with my own solution. I have stopped visiting the lounges as of now.

I believe there will be improvements in near future. Atleast hope for that.

 

[Deleted member 11974]

As premium as they can give by being LTF. It may not be absolutely premium but as you're not giving a penny for those cards they're value for money for some 'premium' features even though there are minimum spent criteria.

those features match basic cards whose fees can be waived off by reaching milestone

 

[Deleted member 11974]

Lounge companies can invest that. They're actually in huge profits even though airport isn't cheap. Separate seating arrangements will be slowly there in more lounges. They can arrange that.

why are you advocating for one for all and all for one
lounge access isn't a necessity that everyone needs to get
if you are so desperate for a lounge access either pay and go or take a higher variant card.
the only reason gold has utility is because of its scarcity
if all the gold us excavated it will be selling for the price of peanuts
the same analogy can be applied for a lounge access as well.
a card costing a lakh or two deserves unlimited access because it is not something everyone can afford
if they did it wouldn't be called a super premium card
that's the same reason amex arent issued in the same number as other cards
the high price of those cards is what segregates the crowd