Several major Indian banks, including SBI Card, HDFC Bank, and ICICI Bank, are revising their credit card benefits, particularly concerning airport lounge access, in response to rising demand and associated costs. These changes, implemented in late 2023 and early 2024, and with further revisions scheduled for 2026, reflect an industry-wide trend to reassess rewards programs to ensure sustainable growth.

Rising Costs and Demand

The increasing cost of providing lounge access, driven by inflation and a surge in post-COVID-19 travel, has placed financial strain on credit card providers. Gurjot Singh, Co-founder of Collekto, noted that the cost of providing lounge access has more than doubled, from 0.10% to 0.25% of the total product cost. This increase, coupled with a surge in lounge usage, has prompted banks to introduce new measures to manage the benefit more effectively.

HDFC Bank

HDFC Bank has implemented changes to its Regalia and Millennia credit cards, linking lounge access to card spending. Effective December 1, 2023, cardholders must spend ₹1 Lakh or more in a calendar quarter to qualify for complimentary lounge access vouchers. Upon meeting the spending criteria, users can claim their lounge access voucher through the Regalia SmartBuy page. Then, starting January 10, 2026, HDFC debit card customers can only access lounge benefits if they spend ₹10,000 in a quarter. Those cardholders will receive a link to claim their lounge access voucher via SMS or email within two working days. After claiming the voucher, cardholders will receive a code required at the lounge.

ICICI Bank

ICICI Bank has modified airport lounge access benefits and reward points rules for 21 of its credit cards. Starting April 1, 2024, cardholders can enjoy one complimentary airport lounge access by spending ₹35,000 in the preceding calendar quarter. For example, spending made in the January-March 2024 quarter will unlock access for the April-June 2024 quarter. Previously, cardholders of ICICI Bank Coral Credit Card or ICICI Bank Expressions Credit Card needed to spend a minimum of ₹5,000 in a quarter to be eligible for complimentary lounge access.

SBI Card

SBI Card is updating its domestic airport lounge access program effective January 10, 2026. The refresh introduces a structured card eligibility framework and wider nationwide lounge participation, strengthening travel benefits for premium and co-branded cardholders across India's busiest airports. The updated program categorizes eligible cards into Set A and Set B, each providing access to a specific group of domestic airport lounges. Set A includes cards like Apollo SBI Card SELECT, BPCL SBI Card OCTANE, Paytm SBI Card SELECT, and PhonePe SBI Card SELECT. Set B covers a broader portfolio, including SBI Card PRIME, KrisFlyer SBI Card, Titan SBI Card, Landmark Rewards variants, and multiple co-branded PRIME cards issued with partner banks. The new lounge roster expands participation across major hubs such as Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, and Kolkata.

Industry Impact

These revisions reflect a broader trend among credit card providers to reassess their rewards programs. As digital payments grow and more Indians become eligible for credit lines, firms need to ensure sustainable growth by adjusting benefits and rewards. These changes include introducing minimum spending criteria, reducing reward points on certain transactions, and modifying lounge access programs. While these changes may seem restrictive to some cardholders, they are necessary for banks to manage costs and continue offering valuable benefits in the long run.