How do banks and airport lounges benefit from offering lounge access to passengers for Rs 2 ?

[jetesh]

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

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

Jul 20, 2023

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 the number of free lounge visits depends on the credit card variant. But have you ever wondered how banks manage to offer you this seemingly luxurious benefit? How much does it actually cost the bank? And who arranges these services? Let's delve into the intricacies and find answers to these...

• TechnoFino
• airport lounge access free lounge access
• Replies: 10
• Forum: Informative Threads

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Oh, I didn't realize that there was already a thread on this topic in the forum 🤔

 

[jetesh]

@jetesh With your call, I will move this. As you want lighter discussion on this.

Bhai ADMIN saab aagaye serious hona pardega 😛

 

[jetesh]

One Ban/Warning ⚠️ makes everyone serious 😭 here

Ah yes, the magic of one warning ⚠️....... suddenly, everyone discovers their inner saint 😇 .

 

[_Mayank_]

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
  

The answer sounds more like AI Generated content. 😉

 

[_Mayank_]

Those un-cools didn't realize the airport langars were there even before AAM ?

Exactly. I have been using lounge access since 2014, the golden period, when it was all exclusive. The post-pandemic period, when every travel influencer started promoting "Free Kahan at the Airport," created a ruckus.

 

[jetesh]

Exactly. I have been using lounge access since 2014, the golden period, when it was all exclusive. The post-pandemic period, when every travel influencer started promoting "Free Kahan at the Airport," created a ruckus.

I completely agree with you. The golden period of lounge access, especially before the pandemic, was truly special. Back then, lounges were exclusive sanctuaries for frequent flyers, offering a peaceful retreat away from the hustle and bustle of busy airports. You really felt like you were getting something unique for your loyalty or status.

However, with the post-pandemic surge in travel content and influencers promoting the 'Free Kahan at the Airport' trend, the landscape has shifted dramatically. While it's great that more people now have access to these spaces, it has also led to overcrowding and, in some cases, diminished the quality of service. It’s no longer just an exclusive experience for the frequent traveler or premium passengers but has become something more commodified.

The influx of social media influencers promoting lounge access as a 'hidden gem or Food for Free or Unlimited lounge food for Rs 2' has undoubtedly made it more mainstream. What once felt like a reward for loyalty or a premium service now feels like something that's often oversold or underwhelming.

 

[HumorSimpson]

The influx of social media influencers promoting lounge access as a 'hidden gem or Food for Free or Unlimited lounge food for Rs 2' has undoubtedly made it more mainstream. What once felt like a reward for loyalty or a premium service now feels like something that's often oversold or underwhelming.

Well said. It has become @D₹V (Do ₹upya Vala) free food 🍲 and every one wants to utilize it.

 

[Quiksilver27]

The answer sounds more like AI Generated content. 😉

Yes it is! google search gives AI answer as the first result..