Should the card issuing banks re-think their lounge access strategy?

[sangalaviral]

Hi All,

Off late most of you must have seen overcrowded airport lounges. The sole reason is now with every card you are getting at least 1-2 lounge visits and it is no longer only available with premium or super premium cards.

The final nail in the coffin was probably when almost all debit cards now offer lounge access.

The space at the airport terminals is limited, so they are ruining the experience for the super-premium customers.

Do you think that slowly they should start withdrawing the lounge access from cards other than premium or super premium?

 

[Chaitanya-a]

Instead more lounges should get opened seeing the demand (atleast in metro cities).

Sections can also be divided. And give access to different lounges/sections for different category of cardholders.

 

[sangalaviral]

There is no space available for more lounges.

 

[Chaitanya-a]

There is no space available for more lounges.

In metro cities, its possible. There is so much of free space in the airport.

 

[CC_Fire]

It is absolutely crazy in some lounges, I sometimes prefer sitting outside than inside a lounge given the crowds and queues to get in !! Especially because Mumbai, Delhi, Bangalore airports in general have now become pretty nice. But agree, the lounges are self destructing and no longer a "novelty"

 

[ltf4ever]

increase the swipe amount to 100 instead of 2. at least for non-premium cards. that would keep out most of the crowd. i am willing to pay that much happily for the food there, instead of having to pay a higher amount for substandard retaurant and fastfood outlets at the airport.
nowadays i usually sit at the almost acompletely empty seating areas near the boarding gate comfortably, while people are forming long queues at the lounges just to enjoy their 'free' visit.

 

[Chaitanya-a]

increase the swipe amount to 100 instead of 2. at least for non-premium cards. that would keep out most of the crowd. i am willing to pay that much happily for the food there, instead of having to pay a higher amount for substandard retaurant and fastfood outlets at the airport.
nowadays i usually sit at the almost acompletely empty seating areas near the boarding gate comfortably, while people are forming long queues at the lounges just to enjoy their 'free' visit.

Do you really think someone would hesitate to pay ₹100 for unlimited meal when he has already paid ₹5-6k for flight ticket? This is not the solution.

 

[SUCHI51]

Wait for some time, the access would be soon withdrawn/reduced - the banks are incurring a charge for every lounge visit - they are currently trying to get more cards issued. Once the reality of costs hits home, they would improve. Examples are the Yes Bank cards - from unlimited to 6 a quarter and then to 3 a quarter. Some cards from indusind allow lounge access only if you have done X amount of transactions in previous month/quarter. The card companies would have to change sooner than later. The current model is unsustainable. In the meanwhile, savour some airport food 🙂 Also - has been said in these forums multiple times - many young people are ruining their credit histories by blindly following points/lounge access etc and applying for more and more cards all over.

 

[SUCHI51]

Instead more lounges should get opened seeing the demand (atleast in metro cities).

Sections can also be divided. And give access to different lounges/sections for different category of cardholders.

The earlier plaza premium at Delhi used to have seperate sections for Amex/Diners/PP/Loungekey and the other cards. Till before covid the Mumbai domestic lounge at T2 was the similar - only status holders and foreign cards at the Adani lounge, and the other bank cards at the lounge opposite (without airside views)

 

[ltf4ever]

yes i do.
but we are missing the point here. 100 might not be the correct amount. make it 150, 200...an amount which is considerably less than the 1300 cost of lounge entry, but sufficiently high enough to act as a deterrent. these price elasticity based analysis should have been ideally done by banks, but here we are.

Instead more lounges should get opened seeing the demand (atleast in metro cities).

i know what definitely is NOT a solution: increasing number of lounges. there is no sustainable business model and banks are paying for the food and operation cost for each card entry. if all of a sudden, banks pull out from the lounge benefits game, lounge operators would be ruined. the current number of lounges is just enough to be able to survive if banks stop giving lounge accesses and people who can afford to pay 1300 are the only customers left.

 

[Chaitanya-a]

yes i do.
but we are missing the point here. 100 might not be the correct amount. make it 150, 200...an amount which is considerably less than the 1300 cost of lounge entry, but sufficiently high enough to act as a deterrent. these price elasticity based analysis should have been ideally done by banks, but here we are.

Only amount higher than ₹500 would do some change. A slight change.

 

[pankaj_ji]

Mitron,
Rupay Debit Card Lounge Access discontinued from 1st April 2023.

So, now less crowd in Lounge is expected

 

[Wealth is my birth right!]

Mitron,
Rupay Debit Card Lounge Access discontinued from 1st April 2023.

So, now less crowd in Lounge is expected

Yes the huge crowd is due to rupay 2/qr free for all DCs hope to see lesser ppl in the coming days
But are u sure it’s removed for debit cards?

RuPay Lounges

www.rupay.co.in

@Abhishek012

 

[pankaj_ji]

Yes the huge crowd is due to rupay 2/qr free for all DCs hope to see lesser ppl in the coming days
But are u sure it’s removed for debit cards?

RuPay Lounges

www.rupay.co.in

@Abhishek012

They have no clarity on this issue as of now.

 

[sangalaviral]

In metro cities, its possible. There is so much of free space in the airport.

Actually you are wrong. For an airport operator, the major source of income is retail space and not lounge. More importantly, if you see Delhi Airport, there is hardly any space left for any new lounge to come up.

 

[sangalaviral]

Mitron,
Rupay Debit Card Lounge Access discontinued from 1st April 2023.

So, now less crowd in Lounge is expected

Any source? I could not find using simple Google queries.

 

[Chaitanya-a]

Yes the huge crowd is due to rupay 2/qr free for all DCs hope to see lesser ppl in the coming days
But are u sure it’s removed for debit cards?

RuPay Lounges

www.rupay.co.in

@Abhishek012

Not yet stopped. I can still see the offer on Rupay Platinum webpage.

But this Rupay Platinum unconditional lounge access offer should get stopped. Bank specific offer should be there for selected customers.

 

[NikunjP]

1. Selected cardholders can be given fixed packed food instead of inhouse buffet.
2. There is no point in charging additional 100,200 or 500 Rs for entry in lounge. It won't work.
3. Multiple small lounges in same space instead of one large will be more peaceful. (Encalm Lounge at Delhi airport is too large. So more people= more noise)
4. Looks like Airport authority/Aviation Ministry is against separate lounges. If premium customers comes out of crowded lounge and use paid facility at other shops, they earn more money.

 

[uchitshah]

Eventually nature will find it own course, this is fact that more lounges cannot at be added at majority of airport.

Yes I support the motion of closing access to lounge for normal card, pay fees, have super premium card and enjoy lounge.

I have seen sheer misuse of lounge, how people eat food and make noise, family picnic.

 

[phagocyte536]

Lounges will have their own case of market correction, most cards will remove once they onboard enough of us. Case in point SBI cashback