Devaluation Yes Bank Credit Card Devaluation - Now Spend 1L to Get Free Lounge Access

[TechnoFinoTechnoFino is verified member.]

Hey TFCians,

Now it’s Yes Bank, and they’re raising the spending requirements to get complimentary airport lounge access. Several Yes Bank credit cards have been devalued, making it necessary to spend a significant amount each quarter to qualify. And some changes regarding reward point redemption.

Here are the details:

Airport Lounge Access:
Effective from April 1, 2025, you’ll need to meet a spending threshold in the previous quarter (Dec 21 - Mar 20 | Mar 21 - Jun 20 | Jun 21 - Sep 20 | Sep 21 - Dec 20) to qualify for complimentary lounge access in the following quarter (Apr 1 - Jun 30 | Jul 1 - Sep 30 | Oct 1 - Dec 31 | Jan 1 - Mar 31).

• Yes Bank MARQUEE/RESERV Credit Card: Spend Rs. 1,00,000 in a quarter to receive complimentary airport lounge access.
• Yes Bank YES First Preferred/YES First Business Credit Card: Spend Rs. 75,000 in a quarter.
• Yes Bank ELITE+/SELECT/BYOC/WELLNESS PLUS/YES Prosperity Business Credit Card: Spend Rs. 50,000 in a quarter.

Please Note:

• The number of complimentary lounge accesses remains the same, subject to meeting the spending threshold.
• This threshold applies only for complimentary access to domestic lounges (within India).

YES Rewardz Points Redemption – effective December 1, 2024

1. Yes Private & Private Prime Credit Cards: Redeem up to 70% of the total invoice value or 6,00,000 YES Rewardz points (whichever is lower) per calendar month on flights and hotels.
2. For MARQUEE Credit Cards: Redeem up to 70% of the total invoice value or 3,00,000 YES Rewardz points (whichever is lower) per calendar month on flights and hotels.
3. For RESERV Credit Cards: Redeem up to 70% of the total invoice value or 2,00,000 YES Rewardz points (whichever is lower) per calendar month on flights and hotels.
4. For Other Credit Cards: Redeem up to 70% of the total invoice value or 1,00,000 YES Rewardz points (whichever is lower) per calendar month on flights and hotels.

Important: The above changes in YES Rewardz redemption are in addition to the existing cap of 50% of available YES Rewardz points when redeeming against gift vouchers and statement credit.

This move by Yes Bank was something everyone anticipated. After ICICI Bank’s similar change, I predicted that most banks would follow this trend of imposing high quarterly spending requirements for complimentary airport lounge access. Don’t be surprised if other banks also increase their spending requirements for lounge access—even RuPay now requires spending for lounge privileges.
I’ve posted a thread on “Free Airport Lounge Access Using Credit Cards: How It Works.” You can check it out for insights into why banks want you to spend to access free lounge benefits.
The 70% cap on reward point redemption isn’t new either; HDFC Bank introduced similar restrictions on their premium credit cards long ago. This change shouldn’t be a big issue, as most people use their Yes Bank reward points for gift vouchers anyway. In short, these changes were expected, and it’s likely that other banks will, unfortunately, follow this trend soon.

 

[tachniki]

Sudha Murthy shared anecdote sometime back on how some elitist behaved with she stood in business class queue. I seriously thought then that it is a made story. But based on some discussion here, looks like that would have happened. 🙂

Let's put some number here. What percentage of people using airport today use airport lounge in India. I see way bigger crowd near gates than in lounge. And number of gates are obviously way more than lounge. I will guess number to be 5% (or even lesser). But let's say 15%. Now, what percentage of air traveller will have ability to spend 35k per month on a single credit card. People are spending 10 to 20k for a round trip per person. I will easily put that number to 30-40% (underestimating).

So, will such devaluation affect number of people in lounge. I highly doubt it. People will just consolidate their expenses on a single card based on various other benefits. With such devaluations, banks are forcing people to spend more on their card or make them choose their card instead of competitor. If ICICI devalues and Yes doesn't. Then people might choose to use ICICI for everything but Yes for lounge.

So many folks in this thread looking for exclusivity or lesser crowds. Why? Lounges are not only places where traffic has increased in last 20 or 30 years. See state of our roads. Because way more people can afford cards. 15 years back cards like Wagon R or Alto might be most selling (priced between 3 to 6 L). Today Creta is one of most selling card. It is priced 15L or more. If we build toll roads, what is percentage of people using toll roads vs non toll road. See state of trains. AC coaches sometimes sell faster than sleeper. If lounges are getting crowded more, we need more lounges. We can't be creating class and saying I deserve and others don't.

If we really need to live with less number of lounges, then only good way be to make it paid, possibly subsidised, with card. Rs 300 is going to be still cheap and many will still use it. If one eats basic breakfast at airport, it costs about 500. Coffee everywhere is 250+. 🙂 Anyways that whole pricing thing is still going to be different ball game. Who will force it? Lounges - they can possibly lose some money for it. Doubtful banks can pull that off. Some bank will play spoilsport and give it for cheaper or free. And they should, right? Else where is free market competition.

 

[Swastik]

Please do not take it as an attack against you! The intention of either of us was not that.

I just wanted to point out how classim and elitism is ingrained into us. We're being made to look at these schemes are something which is low class. It just comes out without even realizing what we're doing.

Only if we speak up, people would realize what's happening. That's the only reason why I bought that up.

I see, no offense taken,
And i do get that collective growth is important for the country,

But i also feel bad for people who've spent time, energy and even money to collect high end credit cards for perks like lounges only to be met with a long line outside and a bigger crowd inside,

 

[chasni]

Let's put some number here. What percentage of people using airport today use airport lounge in India. I see way bigger crowd near gates than in lounge. And number of gates are obviously way more than lounge. I will guess number to be 5% (or even lesser). But let's say 15%. Now, what percentage of air traveller will have ability to spend 35k per month on a single credit card. People are spending 10 to 20k for a round trip per person. I will easily put that number to 30-40% (underestimating).

So, will such devaluation affect number of people in lounge. I highly doubt it. People will just consolidate their expenses on a single card based on various other benefits. With such devaluations, banks are forcing people to spend more on their card or make them choose their card instead of competitor. If ICICI devalues and Yes doesn't. Then people might choose to use ICICI for everything but Yes for lounge.

So many folks in this thread looking for exclusivity or lesser crowds. Why? Lounges are not only places where traffic has increased in last 20 or 30 years. See state of our roads. Because way more people can afford cards. 15 years back cards like Wagon R or Alto might be most selling (priced between 3 to 6 L). Today Creta is one of most selling card. It is priced 15L or more. If we build toll roads, what is percentage of people using toll roads vs non toll road. See state of trains. AC coaches sometimes sell faster than sleeper. If lounges are getting crowded more, we need more lounges. We can't be creating class and saying I deserve and others don't.

If we really need to live with less number of lounges, then only good way be to make it paid, possibly subsidised, with card. Rs 300 is going to be still cheap and many will still use it. If one eats basic breakfast at airport, it costs about 500. Coffee everywhere is 250+. 🙂 Anyways that whole pricing thing is still going to be different ball game. Who will force it? Lounges - they can possibly lose some money for it. Doubtful banks can pull that off. Some bank will play spoilsport and give it for cheaper or free. And they should, right? Else where is free market competition.

Lounges were always meant as an exclusive offering to frequent flyers or premium card holders. Lounge access was originally given only on premium cards. Now, every LTF card has a lounge access. It is evident when you line up for lounge access. People just open their wallet and try every credit and debit card in the hope that it is accepted. This clearly shows that people are not aware of Tnc or any developments about their card. They were sold the credit card by the bank RM by highlighting lounge access as a benefit.

Moreover, people look at lounge just as a channel for free food and booze. You can easily notice people filling their plates with food and then leave without finishing it up. So, Lounge is just a way to get free food for people but actually it was meant for flyers to relax and wait for their flight without going through the normal commotion of the airport.

I went to the Delhi T3 lounge in 2018 for the first time. I went there again the same year. It wasn't crowded at all either at entrance or outside. There were hardly 10-15 people inside. I mean for both of the visits. Then, I again I went in 2019, it was the same case. At that time, Lounge was located where Privee lounge is now. But now, I don't go even have the courage to go there as it is more chaotic than your normal food court. People fighting over fresh plates and spoons.

Lastly, I have seen people selling their lounge access for Rs 200 on different forums. You can't solve this problem by making new lounges. You need to filter people to bring the situation in order.

 

[tachniki]

But i also feel bad for people who've spent time, energy and even money to collect high end credit cards for perks like lounges only to be met with a long line outside and a bigger crowd inside,

If we assume that queue is due to people, who got their card easily, why are others putting more time, energy or money to get same lounge access?

 

[theXfactor]

And i do agree here that with more wealth being generated and more people are getting access to luxury goods and services, their will be a shortage, so instead of being classist or elitist about this things maybe we should have a more holistic approach, like say increasing number of lounges or putting some nominal charges on lounge usage

I’m for it but increasing lounges at airports could be a wishful thinking given that in our country there’s good no. of airports still don’t have lounges or airports itself aren’t too huge. Yes, in relatively bigger cities/metros that’s a possibility. Also, having some nominal charges to access lounges is a workable idea but since everyone can afford to pay such charges incl. the folks not holding cards, high likelihood there would be even more overcrowding and waitlisting than what it is today. Not sure if this holistic approach would take us anywhere wrt the lounges. I’d rather be a realist here.
Having spends associated with lounge access is ok to an extent. I personally need it when I travel with family and halt is longer else I’m good siting outside watching planes take off and land.

 

[tachniki]

Lounges were always meant as an exclusive offering to frequent flyers or premium card holders. Lounge access was originally given only on premium cards. Now, every LTF card has a lounge access. It is evident when you line up for lounge access. People just open their wallet and try every credit and debit card in the hope that it is accepted. This clearly shows that people are not aware of Tnc or any developments about their card. They were sold the credit card by the bank RM by highlighting lounge access as a benefit.

Moreover, people look at lounge just as a channel for free food and booze. You can easily notice people filling their plates with food and then leave without finishing it up. So, Lounge is just a way to get free food for people but actually it was meant for flyers to relax and wait for their flight without going through the normal commotion of the airport.

I went to the Delhi T3 lounge in 2018 for the first time. I went there again the same year. It wasn't crowded at all either at entrance or outside. There were hardly 10-15 people inside. I mean for both of the visits. Then, I again I went in 2019, it was the same case. At that time, Lounge was located where Privee lounge is now. But now, I don't go even have the courage to go there as it is more chaotic than your normal food court. People fighting over fresh plates and spoons.

Fair points but I dont see problem solving by making lounge access based on spend.

Lastly, I have seen people selling their lounge access for Rs 200 on different forums. You can't solve this problem by making new lounges. You need to filter people to bring the situation in order.

This is easily fixable by banks and should be done. Banks can ask proof of boarding pass from lounge. I believe PP doesn't allow anyone else to use card. Dreamfolks allow.

 

[Swastik]

Sudha Murthy shared anecdote sometime back on how some elitist behaved with she stood in business class queue. I seriously thought then that it is a made story. But based on some discussion here, looks like that would have happened. 🙂

Oh Please share the article, would love to give it a read

 

[Swastik]

If we assume that queue is due to people, who got their card easily, why are others putting more time, energy or money to get same lounge access?

Some glimmer of exclusivity is left i suppose,
I love the lounge at my home airport, Airr Lounge VTZ, it's small with limited menu but the food is fresh, service is prompt and courteous, and there's plenty of space,
All because it's access is limited to select few cards

 

[chasni]

Fair points but I dont see problem solving by making lounge access based on spend.

Yes, it won't solve the problem completely but hopefully will reduce some crowd over time.

 

[tachniki]

Oh Please share the article, would love to give it a read

Here we go https://www.outlookindia.com/books/sudha-murty-news-300466

 

[chasni]

Here we go https://www.outlookindia.com/books/sudha-murty-news-300466

For some reason, it feels more like novel than actual life. But I may be wrong.

 

[tachniki]

Yes, it won't solve the problem completely but hopefully will reduce some crowd over time.

I really doubt that as I already have said through (my guessed) number. As long as free access exists (even if conditional / spend based), enough people are rich enough to match that. Only option is no free access.

And please understand, banks' goal is not to reduce crowd with these devaluations. They don't care for crowd. Their aim is to sell enough cards, people spend on them (if possible more than what they can afford) and hopefully most of people pay back (even better if with interest).

Does lounges have goal to reduce crowd, either? I don't know.

 

[tachniki]

I felt similar then. And today also, I will take that exact conversation with pinch of salt. But, well guys are talking about it here, right? Why non premium cards have access to same lounge and why they should not sit near the gate. I don't see much difference.

For some reason, it feels more like novel than actual life. But I may be wrong.

 

[Harry1]

So... Yes Bank hasn’t spared its Private credit card this time. Now, the Yes Private card will have a cap of 70% reward point usage per travel booking transaction.

YES Rewardz Points Redemption – Effective December 1, 2024: For Yes Private & Private Prime Credit Cards: Redeem up to 70% of the total invoice value or 600,000 YES Rewardz points (whichever is lower) per calendar month on flights and hotels booking.

Additionally, merchandise redemption for both cards will now be discounted.

View attachment 73663

Ispe lounge ke liye 2L spend nai lagaya😅.

 

[Shoxie]

I really doubt that as I already have said through (my guessed) number. As long as free access exists (even if conditional / spend based), enough people are rich enough to match that. Only option is no free access.

And please understand, banks' goal is not to reduce crowd with these devaluations. They don't care for crowd. Their aim is to sell enough cards, people spend on them (if possible more than what they can afford) and hopefully most of people pay back (even better if with interest).

Does lounges have goal to reduce crowd, either? I don't know.

Well, let's not get into politics! We made a point and we can rest our case there. The thread is discussing something else. It's better for all of us to rest the conversation here, or take it to somewhere else in the forum.

 

[Swastik]

Here we go https://www.outlookindia.com/books/sudha-murty-news-300466

Classic example of Don't judge a book by it's cover
But, this made me smile and giggle a little, it's a good read😁

 

[Swastik]

Ispe lounge ke liye 2L spend nai lagaya😅.

My thoughts exactly

 

[tachniki]

Well, let's not get into politics! We made a point and we can rest our case there. The thread is discussing something else. It's better for all of us to rest the conversation here, or take it to somewhere else in the forum.

Edited and removed. Thanks.

 

[Abhishek012]

Yes, it is very bad from the card perspective,
.

but a very good sign to ease the rush at the lounges.
After all the banks implement these changes it will truly become a benefit with some sort of exclusivity , which is good for long term.

In this case, people will take and spend only on those cards which are suitable for their life styles.. won't take every single card that is offered to them which is good for both banks and customers..

Yes few years ago, this guy suggested all banks to offer 50k/1 lakh on card spend based lounge access.

It seems that now all banks have accomplished this.

koi mahapurus he hoga yeh. isne kaha aur ho gaya. 😜😜

 

[Harry1]

Yes few years ago, this guy suggested all banks to offer 50k/1 lakh on card spend based lounge access.

It seems that now all banks have accomplished this.

koi mahapurus he hoga yeh. isne kaha aur ho gaya. 😜😜

Lol hdfc (not entry levels) and sbi are the few of those who haven't yet added any spends criterion.