Can someone throw some light on how Lounge Access companies like Dreamfolks makes profits or sustain?

[ZappyRed]

How do banks make profits or sustain their business by offering lounge access for Just Rs 2 or Rs 25 that too refundable?
How do card networks like Visa or Mastercard make money by having lounge access on their cards for their customers?
How did Dreamfolks manage the banks and card networks to accept lounge access at their facilities?
The business of Lounge access intrigues me a lot. Sometimes, I feel like making money by starting Lounge access facilities across India and the world. I know it takes a lot of money to do this. But, still, I feel like doing so.

Can someone please decode their trade secrets in the most detailed manner possible?

I'd like @TechnoFino Mr. Sumanta Mandal do a detailed video on the above questions.

 

[Tejo]

How do banks make profits or sustain their business by offering lounge access for Just Rs 2 or Rs 25 that too refundable?

I hope the bank's and card networks earns a lot for flight bookings.

Also free lounge excess are limited.

The credit card issuing bank pay off's that amount. The card networks will partnership with lounge service companies, issuing banks pays less amount only compared to what individuals will pay.

It's a type of reward program, they earn a lot when we do flight bookings, also we need carry card, so we will use in between the travelling.

For lounge access, spend restriction also there nowadays.

Also if unlimited lounge access or international lounge access means they might charge annual fee heavily.

For example, @TechnoFino told amex provided lounge access for busiest one in France within 20 min on request for holding centurion amex card which has lakhs of joining/annual fee.

 

[Deleted member 11974]

Banks make money through the form of MDR. Merchant discount rate is a share of revenue they receive for every transaction done on credit cards.
Secondly they earn huge interest on emi conversion.
Thirdly they make money on joining fees as well.
Now will the profits they have made they pay the lounges based on the number of accesses per month per banks cards that have been swiped there.
The same logic for international lounge.
Networks like Visa MC are data aggregators and they also make a % revenue of the mdr which makes them billions in dollar every year.
Dreamfolks partnered with the banks to offer these services which is funded by the banks

 

[RaviAglRaviAgl is verified member.]

Here is the exact reply to your question...

See
Thread 'Free Airport Lounge Access Using Credit Cards: How It Works and How Much Banks Spend for Your Free Lounge Access'

Free Airport Lounge Access Using Credit Cards: How It Works and How Much Banks Spend for Your Free Lounge Access

If you're a frequent air traveler, you're probably familiar with the concept of airport lounges. And if you're a credit card user, you might have heard about the attractive benefit of complimentary airport lounge access that comes with certain credit cards. Many credit cards offer this perk, and...

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