Dreamfolks Services Ltd., once India's largest aggregator of airport lounge services, has officially discontinued its domestic lounge access services, effective September 16, 2025. This move is expected to disrupt lounge access for credit card users of select banks who rely on complimentary lounge access as a key perk. The company announced the decision in a stock exchange filing, describing it as a "material" event. While Dreamfolks is ceasing its domestic lounge program, its other domestic offerings and its international lounge access business will continue to operate without disruption.

Why Dreamfolks Shut Down Domestic Lounge Services

Several factors contributed to Dreamfolks' decision to exit the domestic lounge access business:

• Contract Terminations: Dreamfolks has faced a series of major contract terminations, signaling growing challenges in its domestic lounge business. Adani Digital and Semolina Kitchens terminated their lounge agreements with Dreamfolks in mid-September, and Encalm Hospitality is set to follow in November. Travel Food Services (TFS) also ended its extended lounge access agreement on September 15, 2025, following unsuccessful renegotiations over commercial terms.
• Operators Going Direct: Large airport operators are increasingly moving toward direct-to-consumer lounge programs. Major players such as TFS and Adani Airports Holdings Ltd. (AAHL) are building direct partnerships with banks and card networks. Adani, for example, launched its proprietary digital platform in July 2025, enabling passengers to book lounge access directly and bypass intermediaries.
• Reduced Traffic: These changes have led to a sharp dip in usage. Dreamfolks CEO Liberatha Peter Kallat said the company used to have traffic of 800,000 people at its lounges every month earlier, which has now fallen to around 400,000-500,000 per month.
• IT Issues: In September 2024, Dreamfolks experienced a temporary disruption in services that impacted lounge access for thousands of customers of banks and card networks. While the issue was resolved the next day, it prompted banks and card networks to explore other alternatives.

What This Means for You

• Disruption of Lounge Access: Dreamfolks' exit is expected to disrupt lounge access for credit card users of select banks who rely on complimentary lounge access as a key perk. If you have a credit card that offers lounge access through Dreamfolks, you may no longer be able to use it at domestic airport lounges.
• Impact on Smaller Banks' Customers: While this move may not impact cardholders of major banks, customers of smaller banks may face challenges until their banks forge new partnerships.
• Focus on Global Lounges: Dreamfolks emphasized that its global lounge operations remain unaffected, ensuring continuity for international travelers.
• Alternative Solutions: Dreamfolks is actively working with clients to introduce alternate value propositions that could compensate for the loss of domestic lounge access.

What's Next for Dreamfolks?

Dreamfolks is in active discussions with clients to provide alternative value propositions, while assuring that its current contracts with banks and card partners continue to remain in force. The company is focusing on its global lounge operations and exploring new customer solutions.