Dreamfolks Services, once India’s largest airport lounge aggregator, has officially exited the lounge access business in India. The decision, announced in a stock exchange filing on Tuesday, is expected to disrupt lounge access for credit card users of select banks who rely on complimentary lounge access as a key perk.
While this move may not impact cardholders of major banks, customers of smaller banks may face challenges until their banks forge new partnerships.
For years, Dreamfolks acted as the middleman between banks, credit card issuers and airport lounge operators, providing seamless access for millions of travellers. But the company has been facing mounting pressure from new competitors and changes in the market.
According to Ajay Awtaney, founder and editor of aviation and loyalty platform LiveFromALounge.com, Dreamfolks’ troubles began when major lounge operators started pulling out from its network.
“Dreamfolks has seen competition from newer intermediaries for the lounge aggregator business, such as that launched by TFS and Adani Digital (LoungeOne in),” Awtaney said.
Major lounge participants such as Encalm, which operates lounges at GMR airports like Delhi and Adani’s Semolina Kitchens, which runs lounges at Mumbai and Lucknow, had pulled back their lounges from the Dreamfolks platform recently, he added.
The loss of lounges was compounded by the departure of some of Dreamfolks’ biggest clients, such as ICICI Bank, Axis Bank and IDFC FIRST Bank, who started moving away as early as July 2025. “ICICI and Axis Bank were the first ones to move…Perhaps a part of the cause of the collapse,” Awtaney noted.
Bank cards impacted
ICICI Bank and Axis Bank have partnered with LoungeOne, a digital lounge access platform from Adani Group. The platform provides lounge access across 16 airports, including major cities like Ahmedabad, Bengaluru, Mumbai, and Pune.
IDFC Bank has informed its debit card customers that Elite Assist by TFS is the new platform they should use to book lounge access; however, no such communication has been sent to credit card users yet.
Hence, customers of these banks continue to enjoy lounge access through alternative aggregators that their banks have already partnered with.
Users of Federal Bank’s Scapia card, among the few lifetime-free cards offering unlimited domestic lounge access, are not impacted by Dreamfolks’ exit, a company spokesperson told Mint. “Scapia has already established direct lounge tie-ups, ensuring seamless and uninterrupted access for its users across airports,” the person said.
Besides direct partnerships with banks, Dreamfolks used to provide lounge access via card networks, like Visa, Mastercard and Diners Club. Awtaney pointed out that cards on Diners Club, which are offered through HDFC Bank, are affected by the suspension of Dreamfolks’ services.
However, the impact is limited to HDFC cards on Diners network. HDFC cards on other networks will continue to work in airports listed on LoungeOne platform.
Those with super premium credit cards with Priority Pass membership can continue to access lounge. Cards of several banks, including SBI (such as SBI Card Elite, SBI Card PRIME), ICICI Bank (ICICI Bank Sapphiro), HDFC Bank (Infinia) and Axis Bank (Magnus card) offer complimentary priority pass membership.
“Most major lounges and banks have moved to other platforms. However, smaller banks might have not transitioned yet, so they might see their customers a bit lost at the airport at the moment,” Awtaney said.
In the short term, cardholders from smaller banks may be denied entry to lounges until the banks establish new partnerships.
About the Author
