Shares of Dreamfolks Services, an airport service aggregator, experienced a sharp decline, hitting a 5% lower circuit at ₹131 on the BSE in early trading on Wednesday, September 17, 2025. This downturn followed the company's announcement that it has discontinued its domestic airport lounge services with immediate effect. The company communicated this decision to the exchanges, acknowledging the "material" impact of this development. However, Dreamfolks clarified that its other domestic services and global lounge business would continue operating as usual.

This exit from the domestic airport lounge business marks a significant shift for Dreamfolks. The company, through a regulatory filing on September 16, stated that contracts with clients remain active and that discussions regarding alternate customer value propositions are in progress.

Several factors contributed to this decision. Travel Food Services had announced the termination of its contract to provide lounge access services to Dreamfolks customers, effective September 15, 2025, citing unsuccessful renegotiations of commercial terms. Furthermore, Adani Digital, Semolina Kitchens, and Encalm Hospitality had also indicated their intention to discontinue certain services in the preceding month. Dreamfolks had previously cautioned that these cancellations could negatively impact its operations and financial performance.

According to the Economic Times, Adani Airports has been pushing a direct-to-consumer model, with its CEO stating that fintech platforms have made "middlemen" redundant.

The impact of Dreamfolks' exit from the domestic lounge business is expected to be substantial, given its previously dominant position in the market. In June 2025, reports indicated that Dreamfolks commanded 90% market share in the domestic lounge access market for debit and credit card holders in India. The company's platform included all 76 airport lounges in India and over 20 card issuers, including major players like ICICI Bank and Axis Bank.

The stock has plummeted around 73% in one year (as of the September 16 closing level on the NSE), 65% so far in 2025 (year-to-date), nearly 35% in the past six months, and over 5% in the past 30 days.

Adding to the challenges, a disruption in September 2024 had caused widespread issues with airport lounge access, affecting thousands of customers. At that time, at least 49 lounges across 34 airports in India were suddenly closed.

Dreamfolks Services is an airport services aggregator that uses a proprietary technology platform. It enables clients, such as banks, card networks, airlines, online travel agents, and enterprises, to create custom offerings for their end consumers. The company integrates global card networks, card issuers, and corporate clients with airport lounge operators, transport operators, and other service providers. Dreamfolks facilitates customer access to various airport-related services, including lounges, food and beverage, spas, airport transfers, and transit hotels.

Despite the challenges in the domestic sector, Dreamfolks is actively engaging with clients to explore alternative customer value propositions and emphasizes that its contracts with clients remain active. The company will continue to focus on its other domestic services and its global lounge business.