Banks removing Lounge benefits from non-premium cards

[shashankrt]

THE AIR TRAFFIC is all pent up demand.Wages arent increasing ,jobs are being cut,its only a matter of time before people will stop affording air tickets if real wages dont go up.
As for infra, tier 1 cities dont have space to expand so it is practically impossible to upgrade infra, thats why reverse migration is a viable solution but for that corporates need to take the lead.
And airports are being developed elsewhere as you can see navi mumbai airport is going to become an alternative for mumbai airport

Not really. Any person who can afford 2nd AC train can afford flight on same route unless the route is remote and flights are scarce. For example Mum - Blr or Mum - Del. No one in his right mind will spend 18 -24 hrs travelling by train in 2nd AC unless absolutely necessary.

 

[Yugi]

THE AIR TRAFFIC is all pent up demand.Wages arent increasing ,jobs are being cut,its only a matter of time before people will stop affording air tickets if real wages dont go up.
As for infra, tier 1 cities dont have space to expand so it is practically impossible to upgrade infra, thats why reverse migration is a viable solution but for that corporates need to take the lead.
And airports are being developed elsewhere as you can see navi mumbai airport is going to become an alternative for mumbai airport

If we see the industry report published by EY: ey-future-of-pay-report.pdf , we clearly see that wages are growing in India, so is per capita income. I agree that economy is not good but not all sectors are affected the same. Jobs are being outsourced from western countries to India.

Coming to Air Traffic in India the trend says that as mentioned in the link India's air passenger traffic likely to increase to 827 mn by 2032-33 (business-standard.com) it is going to increase by leaps and bounds even after revenge tourism comes down. As I have said there will foreign travellers too.

For argument's sake lets assume flight prices are going up faster than wages and lesser people can afford air travel, won't it solve the lounge problem then that only people with super premium cards will travel. Maybe banks are waiting for this event, so that they can still advertise lounge access knowing people can't utilise it.

Bangalore has built a second terminal, hyderabad is proposing one, so yeah there might be space crunch but there is still scope for expansion. If India has to truly become a transit hub it need to solve for the air traffic problem.

 

[Deleted member 11974]

Not really. Any person who can afford 2nd AC train can afford flight on same route unless the route is remote and flights are scarce. For example Mum - Blr or Mum - Del. No one in his right mind will spend 18 -24 hrs travelling by train in 2nd AC unless absolutely necessary.

These are specific routes
Check for non business routes.
Routes like jaipur bagdoogra have gone one way uptill 9k
So for a family of 4 a return journey costs 72k which might be almost his 1-2 mo th salary

 

[Deleted member 9785]

The truth about wage growth in India (annual will be 35%/8 = 4.5%)

As per latest provisional estimate published on 31st May, 2023, India's per capita Net National Income (NNI) at constant (2011-12) prices increased by 35.12 percent from Rs. 72,805 in 2014-15 to Rs. 98,374 in 2022-23.

PER CAPITA INCOME

As per latest provisional estimate published on 31st May, 2023, India’s per capita Net National Inco

pib.gov.in

 

[shashankrt]

These are specific routes
Check for non business routes.
Routes like jaipur bagdoogra have gone one way uptill 9k
So for a family of 4 a return journey costs 72k which might be almost his 1-2 mo th salary

Most routes with heavy traffic are routes from metros to tier1. Routes you mentioned are expensive because of less flights. Once any of these routes become popular it will be same as Mum Blr or Mum Del.

 

[Deleted member 11974]

If we see the industry report published by EY: ey-future-of-pay-report.pdf , we clearly see that wages are growing in India, so is per capita income. I agree that economy is not good but not all sectors are affected the same. Jobs are being outsourced from western countries to India.

Coming to Air Traffic in India the trend says that as mentioned in the link India's air passenger traffic likely to increase to 827 mn by 2032-33 (business-standard.com) it is going to increase by leaps and bounds even after revenge tourism comes down. As I have said there will foreign travellers too.

For argument's sake lets assume flight prices are going up faster than wages and lesser people can afford air travel, won't it solve the lounge problem then that only people with super premium cards will travel. Maybe banks are waiting for this event, so that they can still advertise lounge access knowing people can't utilise it.

Bangalore has built a second terminal, hyderabad is proposing one, so yeah there might be space crunch but there is still scope for expansion. If India has to truly become a transit hub it need to solve for the air traffic problem.

Coming to your ey report.
It is factually incorrect.
Infosys fresher earned 2.75L 10 years back,today he earns only 3.5L.
Now if you account for inflation and the actual cost of living in a tier 1 city he is technically paying money to work a job.

Coming to air travel part,people will travel if they can afford to do the same.
With the current air fares it's just kicking the can down the road if wages don't increase.

Banks are facing a liquidity crunch and will see that impact on their cost of capital and nims.
So they are cutting on freebies where saturation has been acheived

 

[Deleted member 9785]

Coming to your ey report.
It is factually incorrect.
Infosys fresher earned 2.75L 10 years back,today he earns only 3.5L.
Now if you account for inflation and the actual cost of living in a tier 1 city he is technically paying money to work a job.

Coming to air travel part,people will travel if they can afford to do the same.
With the current air fares it's just kicking the can down the road if wages don't increase.

Banks are facing a liquidity crunch and will see that impact on their cost of capital and nims.
So they are cutting on freebies where saturation has been acheived

One wifey sees other wifey post social media pics of travel holiday and forces hubby to book ... The circle continues ............ Travel on debt and lower savings is increasing a lot. People are not saving and dont realises with increase automation job security beyond 45 is a myth.

 

[Deleted member 11974]

Most routes with heavy traffic are routes from metros to tier1. Routes you mentioned are expensive because of less flights. Once any of these routes become popular it will be same as Mum Blr or Mum Del.

Leave the argument that they are expensive because they are not popular routes.
People travelling at these prices are people who have disposable income due to covid profits or buisness booms
6-8 months down the line these routes will have to go down atleast 50% to even maintain 50% of the current traffic.
With the current job cuts rate it is not very long before people end up not being able to afford these things

 

[Deleted member 11974]

India's savings to GDP is at a 40 year low
So I need to have a word with EY analyst or associate who was high on weed when he made this report.
It's not like suddenly Indians mindset changed to us and we went from a savings to spending economy.
People are spending their savings because wages aren't going up and expenses are shooting up

 

[Yugi]

Coming to your ey report.
It is factually incorrect.
Infosys fresher earned 2.75L 10 years back,today he earns only 3.5L.
Now if you account for inflation and the actual cost of living in a tier 1 city he is technically paying money to work a job.

Coming to air travel part,people will travel if they can afford to do the same.
With the current air fares it's just kicking the can down the road if wages don't increase.

Banks are facing a liquidity crunch and will see that impact on their cost of capital and nims.
So they are cutting on freebies where saturation has been acheived

You are saying industry report is factually incorrect without any data to back it up, can't argue with that.

As I said, wage increases are different across industry, that why we have to see the overall trend. Bank are facing liquidity crunch because RBI has introduced measures to curb the liquidity not due to NPA's, so that inflation is under control.

 

[Slayer]

Not really. Any person who can afford 2nd AC train can afford flight on same route unless the route is remote and flights are scarce. For example Mum - Blr or Mum - Del. No one in his right mind will spend 18 -24 hrs travelling by train in 2nd AC unless absolutely necessary.

I would travel from Pune/Mumbai to Hyderabad in Shatabdi because 8 hours at less than 2000 is better than 4 hours at over 8000

 

[Deleted member 11974]

You are saying industry report is factually incorrect without any data to back it up, can't argue with that.

As I said, wage increases are different across industry, that why we have to see the overall trend. Bank are facing liquidity crunch because RBI has introduced measures to curb the liquidity not due to NPA's, so that inflation is under control.

If you believe every report an industry player publishes then God help you.
Often too many times there is govt pressure and lobbying to make a 6 look like a 9.
But unfortunately rbi data can't be manipulated

As for rbi rate hikes,rbi had to do it due to fed hikes and also it was the perfect time and reason to let banks make money at a higher % and clean their balance sheets after pathetic lending in the past 10 years

 

[shashankrt]

I would travel from Pune/Mumbai to Hyderabad in Shatabdi because 8 hours at less than 2000 is better than 4 hours at over 8000

Why will you pay 8000? Both Mum/Pune to hyderabad is sub 4k even for peak December flights and unlike train u can atleast book those flights rather than being subjected to waitlists.

 

[Deleted member 11974]

so dont blindly beleive what is fed to you.
Often what you see isnt the actual case.

 

[Deleted member 11974]

Why will you pay 8000? Both Mum/Pune to hyderabad is sub 4k even for peak December flights and unlike train u can atleast book those flights rather than being subjected to waitlists.

are you serious?
the dates he wanted to travel the prices must have been at 8k is what he is trying to tell.
so in the end it will all boil down to whether people value their time more or money more.
and 6-8 months down the line people will have to shift to valuing their time more if the economy stays like this

 

[CARDBITRAGE]

The prices are rising in India mainly due to the supply-demand situation. The entire airline industry has basically become a duopoly between Indigo and Air India. The airline industry is extremely price-sensitive and people are obviously filling up the seats at these prices, so I doubt there will be any further decline in prices going forward. But I've seen that prices on most routes have normalized or rather come back to sensible prices.

 

[quino]

You are saying industry report is factually incorrect without any data to back it up, can't argue with that.

As I said, wage increases are different across industry, that why we have to see the overall trend. Bank are facing liquidity crunch because RBI has introduced measures to curb the liquidity not due to NPA's, so that inflation is under control.

ey is a pvt consultant company with a lot of govt contracts (having first hand experience). so they'll print whatever govt tells them to do.

 

[Deleted member 11974]

The prices are rising in India mainly due to the supply-demand situation. The entire airline industry has basically become a duopoly between Indigo and Air India. The airline industry is extremely price-sensitive and people are obviously filling up the seats at these prices, so I doubt there will be any further decline in prices going forward. But I've seen that prices on most routes have normalized or rather come back to sensible prices.

routes like bom del
bom blr
blr del
bom hyd
bom maa
dont have a problem as they are frequently travelled routes
but incommon routes where indigo is the sole traveller has prices as high as 8-10k for a route
so it is a matter of time before a middle class man would be able to afford this

 

[Yugi]

If you believe every report an industry player publishes then God help you.
Often too many times there is govt pressure and lobbying to make a 6 look like a 9.
But unfortunately rbi data can't be manipulated

As for rbi rate hikes,rbi had to do it due to fed hikes and also it was the perfect time and reason to let banks make money at a higher % and clean their balance sheets after pathetic lending in the past 10 years

God need not save me if I am well read, understand data and draw conclusions. EY doesn't any incentive to fudge those numbers, else its reputation is at stake amongst its clients. Leave alone EY, there are bunch of other reports and news articles which state the same.

As you rightly said RBI has to raise rates in tandem with FED hikes, else there will be huge outflow of capital resulting in crash, but it can also do it to a certain extent. So, additionally curb liquidity it has changed CRR's in innovative ways, asked banks to increases provisions on loan. All these measures are taken to curb inflation and control loans given out. Not to increase banks profits.

 

[CARDBITRAGE]

routes like bom del
bom blr
blr del
bom hyd
bom maa
dont have a problem as they are frequently travelled routes
but incommon routes where indigo is the sole traveller has prices as high as 8-10k for a route
so it is a matter of time before a middle class man would be able to afford this

Exactly. Supply-demand+duopoly. But from what I understand Indigo is doing well servicing those small airports and most of the flights run at almost full capacity. As long as that happens, prices will remain elevated on those routes.