Banks removing Lounge benefits from non-premium cards

[WandereR]

Not to get into this argument but lounge access isn't a basic necessity for air travel which every basic card must provide. If they do, it's up to them we can't argue. The overcrowding problem is annoying, yes but it's also known that it's going to have restrictions for the basic cards soon enough (as some have already started the process).
People using basic cards (<= 1000 fee) and accessing lounges would be quite a handful and if offered, many would prefer getting a 1% increase in the reward rate which could probably equalize the cost to the bank. The argument in favor of people who travel once or twice a year and who would not keep a premium card can probably buy the lounge access/ skip it altogether.
Hyderabad T1 domestic lounge has long queues even in the morning, but Magnus M&G users bypass that and have their own "personal" space. I think Mumbai & 080 Blr also have some specific sections reserved (as read in other discussions). Not quite sure about the other airports but something similar is much needed at all the lounges for premium card holders.

 

[CARDBITRAGE]

Not to get into this argument but lounge access isn't a basic necessity for air travel which every basic card must provide. If they do, it's up to them we can't argue. The overcrowding problem is annoying, yes but it's also known that it's going to have restrictions for the basic cards soon enough (as some have already started the process).
People using basic cards (<= 1000 fee) and accessing lounges would be quite a handful and if offered, many would prefer getting a 1% increase in the reward rate which could probably equalize the cost to the bank. The argument in favor of people who travel once or twice a year and who would not keep a premium card can probably buy the lounge access/ skip it altogether.
Hyderabad T1 domestic lounge has long queues even in the morning, but Magnus M&G users bypass that and have their own "personal" space. I think Mumbai & 080 Blr also have some specific sections reserved (as read in other discussions). Not quite sure about the other airports but something similar is much needed at all the lounges for premium card holders.

080 domestic T1 lounge has a dedicated VIP section(a la carte menu). But it has an additional access fee of around 3k INR. But no segregation as such for different card holders.

 

[Akash Topder]

4/If you have a need of air travel afford things accordingly
if you can buy a flight ticket worth 5 figures i am sure a lounge access or a mid end card costing 1-3k can be afforded.if not then that products isn't for you
I have literally seen people in tier 1 city buying things they cant on emi especially phones
for a rich person it might be pocket change but buying it on emi to impress people is absurd

A lot people have 1k midrange cards but even those cards can be obtained LTF. But that's not the point. You're really not understanding the point here. Middle class people are more practical. Even if a higher middle class can afford a 50k iPhone without EMI they won't buy 10k on a sunglass or a jeans/shirt. To middle class every commodity have a price range. Inside that range those are VFM and practical. Just because they can afford 20k flight fare doesn't mean a 3k credit card is practical or VFM for them. It's because a card with 1k fees will suit them just fine.

 

[Deleted member 11974]

I have personally seen migrants going back to their home via a flight by paying 10k.
Migrants as in a construction labourer,carpenters craftsmen.
I am saying this because of the tools they had to keep aside.
So if they can afford to pay a 10k ticket might as well pay a 2-3k lounge access.
And you go to a mall which has an electronics outlet you will see people flocking in to buy iPhone on debit card emi and cc emi.
Now upper middle class people are more frugal compared to lower middle class people which is quite evident by their spending decisions.
Also if they cant afford it maybe they should ask themselves is this made for me.
As I mentioned this is not a social service.
There is subsidized products for necessities such as train travel food housing
Electricity
Lounge access isn't one of them

A lot people have 1k midrange cards but even those cards can be obtained LTF. But that's not the point. You're really not understanding the point here. Middle class people are more practical. Even if a higher middle class can afford a 50k iPhone without EMI they won't buy 10k on a sunglass or a jeans/shirt. To middle class every commodity have a price range. Inside that range those are VFM and practical. Just because they can afford 20k flight fare doesn't mean a 3k credit card is practical or VFM for them. It's because a card with 1k fees will suit them just fine.

 

[raviemailid]

I

So if they can afford to pay a 10k ticket might as well pay a 2-3k lounge access.

It's a very non linear statement. Buying 10k tkt is a necessity or/and compulsion - 2-3k lounge is luxury.

 

[RadioactiveTabela]

Who are these people voluntarily reaching airports 3 hours prior to boarding and chilling at lounges? Most people flying in this country (especially ones with free lounge access) are well off, they have homes and hotel in airport city. Why exactly do they want to relax at an airport and not at respective homes and hotels? If you're travelling domestically with only cabin luggage, you can reach airport entrance 60 mins prior to take off time and it will work out perfectly. Maybe 90 mins prior if checked baggage is involved.

So I really want to meet people who need lounges to relax or freshen up or whatever except in case of a long layover / flight delay or if they have traveled from a far off place. Like I understand someone from Nashik flying out of BOM might need a lounge because 4 hour Nashik - Mumbai travel is involved. I also understand from Andheri reached BOM 60 mins prior to take off time but flight was delayed by 3 hours. But this layover crowd has to be a small minority.

If there are any 'reason for lounge visit' statistics, I am very interested.

 

[raviemailid]

reason for lounge visit

Can't say for others, but here is my case. I travel Blr and Hyd frequently. Hyd is my office and I take morning flight. Like 8 or 9am. I leave home around 6ish or 7ish depending upon the flight. Can't have breakfast so early at home, so I have it in the lounge.

Again on return from Hyd, i normally take Thursday evening flight - around 10-11pm. I leave office arou 7 or 8 and do dinner at airport lounge or a food place and then take flight. Reach home by night 12 or 1.

I had gone for business conf in Delhi and had used the lounge on return in Delhi, avoiding to have late dinner at home.

I had sat in Chennai lounge (crappy lounge) in the evening while coming to finish a report. Guess I just had a coffee but gotten good seats to finish my work. I am sure there are many uses cases.

 

[rogerthat]

Who are these people voluntarily reaching airports 3 hours prior to boarding and chilling at lounges? Most people flying in this country (especially ones with free lounge access) are well off, they have homes and hotel in airport city. Why exactly do they want to relax at an airport and not at respective homes and hotels? If you're travelling domestically with only cabin luggage, you can reach airport entrance 60 mins prior to take off time and it will work out perfectly. Maybe 90 mins prior if checked baggage is involved.

So I really want to meet people who need lounges to relax or freshen up or whatever except in case of a long layover / flight delay or if they have traveled from a far off place. Like I understand someone from Nashik flying out of BOM might need a lounge because 4 hour Nashik - Mumbai travel is involved. I also understand from Andheri reached BOM 60 mins prior to take off time but flight was delayed by 3 hours. But this layover crowd has to be a small minority.

If there are any 'reason for lounge visit' statistics, I am very interested.

Air travel in India is still considered a "exciting premium luxury experience" that needs to be cherished rather than the boring miserable commute that it is in the rest of the world. Given how pathetic the infrastructure is in the rest of our country, people are taken in and even smitten by the shining infrastructure and the whole premiumness feel of the entire air travel shebang that they like being in an airport, like they are in a mall, while again airports are considered some of the most depressing places the world over. Believe me when I say that a lot of people would actually like it if they made check-in compulsory 6 hours before departure given the new and swanky airports.

And lounges are considered part of this experience. Indians also feel that travelling by air itself is an accomplishment in life worth flaunting (even when most air tickets domestically only cost the same as a 2A train ticket), so most feel entitled to lounge access as they consider it part of the package for them having "made it" in life. People shout at the lounge staff for not allowing them access when it's not their fault.

In all, air travel is considered the pinnacle of personal, technological and human achievement. This is also why any travel experience is compared to air travel. "Railway stations just like Airports!", "Travelling in Vande Bharat is just like traveling in a plane!" when VB is infinitely more comfortable than a plane. Can you imagine even Vande Bharat II class seats in plane economy?

P.S. In addition this is also why there is scarce demand for airport transit in India and except two no international airport has mass transport connectivity. When you have made it in life you should travel to the airport in a car and not in a train or bus! (Also part of the airport experience).

For all this to change the perception of air travel has to come down from the level of luxury to that of a "commute" which is not happening anytime soon.

 

[Deleted member 11974]

Who are these people voluntarily reaching airports 3 hours prior to boarding and chilling at lounges? Most people flying in this country (especially ones with free lounge access) are well off, they have homes and hotel in airport city. Why exactly do they want to relax at an airport and not at respective homes and hotels? If you're travelling domestically with only cabin luggage, you can reach airport entrance 60 mins prior to take off time and it will work out perfectly. Maybe 90 mins prior if checked baggage is involved.

So I really want to meet people who need lounges to relax or freshen up or whatever except in case of a long layover / flight delay or if they have traveled from a far off place. Like I understand someone from Nashik flying out of BOM might need a lounge because 4 hour Nashik - Mumbai travel is involved. I also understand from Andheri reached BOM 60 mins prior to take off time but flight was delayed by 3 hours. But this layover crowd has to be a small minority.

If there are any 'reason for lounge visit' statistics, I am very interested.

there are many people who come to the lounge 3 hours early and sit and have food.
The main reason for them i suppose is if you have a flight that is around peak traffic hours you may need to leave 3-5 hours early depending on the traffic even if you end up staying somewhere in borivali, ghatkopar.
And if you sit in a place all cramped up for even 3 hours non stop you will end up tired and hungry.
And i haven't seen many people travelling with only cabin almost all of them check in their bags

 

[Deleted member 11974]

And lounges are considered part of this experience. Indians also feel that travelling by air itself is an accomplishment in life worth flaunting (even when most air tickets domestically only cost the same as a 2A train ticket), so most feel entitled to lounge access as they consider it part of the package for them having "made it" in life. People shout at the lounge staff for not allowing them access when it's not their fault.

In all, air travel is considered the pinnacle of personal, technological and human achievement. This is also why any travel experience is compared to air travel. "Railway stations just like Airports!", "Travelling in Vande Bharat is just like traveling in a plane!" when VB is infinitely more comfortable than a plane. Can you imagine even Vande Bharat II class seats in plane economy?

These 2 paragraphs are so true

 

[BlueFlash]

Who are these people voluntarily reaching airports 3 hours prior to boarding and chilling at lounges? Most people flying in this country (especially ones with free lounge access) are well off, they have homes and hotel in airport city. Why exactly do they want to relax at an airport and not at respective homes and hotels? If you're travelling domestically with only cabin luggage, you can reach airport entrance 60 mins prior to take off time and it will work out perfectly. Maybe 90 mins prior if checked baggage is involved.

So I really want to meet people who need lounges to relax or freshen up or whatever except in case of a long layover / flight delay or if they have traveled from a far off place. Like I understand someone from Nashik flying out of BOM might need a lounge because 4 hour Nashik - Mumbai travel is involved. I also understand from Andheri reached BOM 60 mins prior to take off time but flight was delayed by 3 hours. But this layover crowd has to be a small minority.

If there are any 'reason for lounge visit' statistics, I am very interested.

Ignorance is a bliss, my friend.

Ambani's might say: Who are these people voluntarily going to airports ! Why can't they just take off from their private jets directly from their helipad XD

 

[rohant]

Minimum spends criteria as done by idfc and kotak are great move to restrict lounge access.

does not make sense to restrict wealth users 🙁

 

[metal_heart]

Exactly !!
Having spend based criteria's for lounge access on entry/mid level cards make sense.

Having this condition on their Premium Cards (like IDFC Wealth , ICICI Sapphiro) isn't welcome move.
Rather, Give an additional Lounge access (above say 4/qtr) on every minimum spend

 

[Deleted member 11974]

Exactly !!
Having spend based criteria's for lounge access on entry/mid level cards make sense.

Having this condition on their Premium Cards (like IDFC Wealth , ICICI Sapphiro) isn't welcome move.
Rather, Give an additional Lounge access (above say 4/qtr) on every minimum spend

Idfc wealth recently got this condition
Sapphiro had this from a long time
It has issued so many LTf sapphiros that maybe icici itself doesn't consider it to be a premium offering

 

[NikTravelEnthusiast]

There are multiple ways to curb the current problem of overcrowding at Lounges.I am summarizing my thoughts.

1. Build more lounges-
I guess it's not that easy. I have seen few small airports has already closed the lounges,even though there was a demand.

2.Reduce the lounge visits per cards-
That would be unfair to us all. But I guess thats going to happen in future as banks nowdays are in devaluation mode.

3.Categorize lounge entry based on cards
For e.g.- For entry level card holders they can serve a pre packed box of food. No physical entry.
Mid level card holder can get physical entry with limited accessibility.
Premium card holders can access entire lounge. Like so on....

4.Build premium lounges like Amex, only for Premium card holders.

Do put in your views.

This is my old post.

I guess point no 03 is more practical. Instead of restricting entry to 'entry level card', lounges can give an option to opt for pre packed food. This will reduce the long queue. I believe many will be happy to avoid the hustle of long waiting and will opt for this option.

 

[Deleted member 11974]

This is my old post.

I guess point no 03 is more practical. Instead of restricting entry to 'entry level card', lounges can give an option to opt for pre packed food. This will reduce the long queue. I believe many will be happy to avoid the hustle of long waiting and will opt for this option.

This would kill the buisness of other qsr restaurants there.
Interesting take

 

[metal_heart]

There are umpteen scenarios. I haven't used lounge much. Mostly I'm running late or just have 20-25 mins. But will share instances where I used lounge and there could be many

- Hotel Checkout time was 12 Noon, and the flight was 5 PM. Had good 2 -3 hrs excluding all travel, security etc
- After office travel. Office ends 6 PM flight at 10 PM. Going back home & coming would b 3 hrs additonal commute
- Early Morning flight (4AM ish). Rather than waking up at 1 AM & spoil sleep, Alternatively, I head to airport post dinner & relax at lounge (Plus, family doesn't get disturbed mid night due to my travel)

and few when travelling from Tier 2 city to Tier 1 International airport.

I really want to meet people who need lounges to relax

Many use-case are genuine and not everyone needs lounge for free food.

 

[metal_heart]

This would kill the buisness of other qsr restaurants there.

Not Really. They are already using lounge, so are not contributing to other food outlets eitherways

 

[Deleted member 11974]

Not Really. They are already using lounge, so are not contributing to other food outlets eitherways

what happens is people who get frustrated by standing in the line go for other food alternatives and qsr restaurants become the alternatives

 

[raviemailid]

food alternatives and qsr restaurants become the alternatives

True!

A well-off person who can pay for a lounge will be more disheartened by the crowd (and most likely go to QSR) than a set of people with a pile load of LTF credit cards.

From a pure business perspective, a financial institution is more likely to woo a user who can afford the services for continuous use and hence get higher return/engagement than a user who just wants to accumulate all the LTF cards in the world.