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How do banks and airport lounges benefit from offering lounge access to passengers for Rs 2 ?
- Thread starter jetesh
- Start date
Banks benefit from offering airport lounge access to passengers by attracting high-spending customers with premium credit cards, thus boosting their customer base and generating more revenue through increased card usage, while airport lounges benefit by receiving a fee from the bank each time a cardholder uses their lounge access, which can lead to additional income from lounge purchases made by the passenger while inside.
Key points about how banks and airport lounges benefit:
Customer acquisition and retention for banks:
Providing lounge access as a perk on premium credit cards incentivizes high-spending individuals to choose their bank, enhancing customer loyalty and retention.
Increased card usage:
By offering a valuable travel benefit like lounge access, banks encourage cardholders to use their cards more frequently for everyday purchases.
Higher spending within the lounge:
Airport lounges can earn additional revenue from passengers using their lounge access by selling food, drinks, and other amenities.
Brand perception:
Offering lounge access can elevate a bank's image and perception as a provider of high-quality services for frequent travelers.
Revenue stream for lounges:
Lounges generate revenue by charging banks a fee for each cardholder who uses their lounge access
, thus boosting their customer base and generating more revenue through increased card usage, while airport lounges benefit by receiving a fee from the bank each time a cardholder uses their lounge access, which can lead to additional income from lounge purchases made by the passenger while inside.
Key points about how banks and airport lounges benefit:
- Customer acquisition and retention for banks:
Providing lounge access as a perk on premium credit cards incentivizes high-spending individuals to choose their bank, enhancing customer loyalty and retention.
- Increased card usage:
By offering a valuable travel benefit like lounge access, banks encourage cardholders to use their cards more frequently for everyday purchases.
- Higher spending within the lounge:
Airport lounges can earn additional revenue from passengers using their lounge access by selling food, drinks, and other amenities.
- Brand perception:
Offering lounge access can elevate a bank's image and perception as a provider of high-quality services for frequent travelers.
- Revenue stream for lounges:
Lounges generate revenue by charging banks a fee for each cardholder who uses their lounge access
source - Google search
Airports and lounges still get paid their fees, although at a discounted rate from the banks. Banks charge interest, annual and joining fees and MDR which easily recoups the amount they spend on lounges. And it is a good selling point to customers.
Seriously are you the one asking this question?? The Lounge Man.
Bro, I'm curious about the opinions of others as well .... 😛 😉 😀
Funny, stupid, serious and intelligent replies sabhi type ke views expect kar reha hoon.
My reason for asking this question is because I was travelling last night and overheard a conversation between two or three uncles in the lounge discussing this topic. And one uncle said yaar ye sab AMBANI ADANI MODI Ji ka plan hai abhi free me khilaege baad me charge karege. Jaise JIO plans pehle free me diye fir charge karne lag gaye.
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That's obvious. Nothing is free in this world either service or product. The cost of the lounge bills comes from banks which they charge with other products. These lounge expenses will come under operating expenses in their balance sheet.
Aniket
TF Legend
For banks, it's an indirect investment/ standing promotion/ advertisement which makes more money for them. They can easily pay for it as they earn huge sum of money from various sources through cardholder.
Card issuers pay to Airport Lounges, they have partnered, so they don't care, that ₹2 is just for authentication.
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Aniket
TF Legend
Iski topi uska sar 🙂
ontherocks
TF Premier
altruism . .
Even after getting "free" lounge access
You might have "this" waiting on the next seat 🤣
Free Airport Lounge Access Using Credit Cards: How It Works and How Much Banks Spend for Your Free Lounge Access:
@jetesh This is the exact chain and process.Free Airport Lounge Access Using Credit Cards: How It Works and How Much Banks Spend for Your Free Lounge Access:
If you really don't want the serious thing, and want funny answer here you go.
Bank wants customers and lounges to loot them 😋😋
Lounges want their space occupied by customers, instead of being vacant seats.
@HumorSimpson will give you some more funny GIF's
HumorSimpson
TF Prestige
Those un-cools didn't realize the airport langars were there even before AAM ?
HumorSimpson
TF Prestige
One Ban/Warning ⚠️ makes everyone serious 😭 here
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