Airport Lounge War Explodes! ICICI, Axis Bank Ditch DreamFolks After Shocking Disruption—Is This the End?

ICICI Bank, Axis Bank, and Mastercard are reportedly moving away from DreamFolks Services Ltd, India’s largest airport lounge aggregator, following a massive service disruption that left flyers stranded last year. And more banks may soon follow.

On September 22, 2024, a “temporary service disruption” by DreamFolks disrupted lounge access at 49 lounges across 34 airports, causing widespread chaos among premium customers. The issue, although resolved the next day, shook the trust of several banking and card network giants.

“The September disruption was a wake-up call. Banks are now exploring direct partnerships with lounge operators to avoid future fiascos,” sources told PTI.

Big Players Pull Out

According to three insiders familiar with the matter, ICICI Bank, Axis Bank, and Mastercard are already taking steps to exit their aggregator arrangements with DreamFolks and are negotiating direct deals with lounge operators such as Adani, GMR, and TFS, who collectively handle 80–85% of India’s airport lounge traffic.

While Axis Bank declined comment, emails to ICICI Bank, Mastercard, and DreamFolks remained unanswered at the time of publishing.

From Monopoly to Meltdown?

DreamFolks, which claims a 90% share in India’s domestic lounge access market, is now at risk of losing its dominance. The company’s troubles began when lounge operators like Adani Airports accused it of suspending services in violation of agreements.

Food franchisee Travel Food and Services (TFS) even threatened legal action, further eroding confidence in DreamFolks’ operational stability.

Business Hit Despite Revenue Growth

While DreamFolks posted a 14% revenue growth in FY25 to ₹1,292 crore, its net profit dropped 5% to ₹65 crore. The company has since announced a pivot toward non-lounge services such as spa, wellness, food, meet-and-assist, and airport transfers—but the damage may already be done.

Banks Switch to Adani Digital

Sources say American Express and others have already transitioned to Adani Digital for lounge access at Adani-managed airports—signaling a shift towards direct integration models and away from aggregators like DreamFolks.

What’s Next?

With banks, airports, and service providers bypassing DreamFolks, the aggregator's business model could face a serious existential crisis—unless it acts fast to rebuild trust.

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