Leading banks and card networks in India, including ICICI Bank, Axis Bank, and Mastercard, are moving away from their partnership with DreamFolks Services Ltd, the country’s top airport lounge aggregator.
These entities are now exploring direct tie-ups with airport lounge operators, sources familiar with the matter said.
The shift follows a major service disruption on September 22, 2024, when DreamFolks temporarily halted services, affecting lounge access for thousands of debit and credit cardholders across India.
Although DreamFolks restored services the next day, the incident prompted banks and card networks to seek more reliable and direct solutions.
According to three sources, Axis Bank, ICICI Bank, and Mastercard are leading the transition away from DreamFolks. The sources also expect more banks to follow suit.
While Axis Bank declined to comment, ICICI Bank, Mastercard, and DreamFolks did not respond to emails seeking their views.
Despite commanding over 90% of India’s domestic airport lounge access market, DreamFolks is facing scrutiny.
During the September disruption, at least 49 lounges across 34 airports reportedly suspended operations.
The fallout affected travellers across the country and strained DreamFolks’ relationship with key partners.
Travel Food and Services (TFS), which manages lounges in Kolkata and Chennai, allegedly considered legal action against DreamFolks over the disruption.
Adani Group, which operates seven Indian airports, criticised DreamFolks for suspending services in violation of existing agreements.
In a public statement, Adani said, “Passengers across India experienced disruptions due to the unexpected suspension of services by DreamFolks Services Ltd, in breach of its service agreements.”
Major operators such as GMR, Adani, and TFS handle 80-85% of total footfall through lounges where DreamFolks currently acts as a third-party aggregator.
The disruption encouraged both airport operators and banks to consider bypassing the aggregator to establish direct working relationships for smoother operations.
Following the disruption, American Express reportedly partnered with Adani Digital to maintain lounge access at Adani-operated airports.
After the disruption, DreamFolks stated on September 22 that it had addressed ‘a temporary disruption in services’.
The following day, the company confirmed that its team had resolved integration issues at Adani Airports and restored full card acceptance for lounge access.
“We have implemented a robust solution ensuring seamless transactions for all stakeholders,” the company said in a statement.
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