Banks Break Away: DreamFolks Services Faces Turbulent Times
Major Indian banks and card networks like ICICI and Axis Bank are severing ties with DreamFolks Services for airport lounge access, opting for direct partnerships with lounge operators. A prior service disruption prompted the move, with banks seeking alternatives to ensure seamless services for their customers.
- Country:
- India
In light of a significant service disruption by DreamFolks Services last year, major Indian banks, including ICICI and Axis Bank, are moving away from aggregated partnerships in favour of direct dealings with airport lounge operators.
This shift is triggered by a temporary suspension of lounge access across numerous airports attributable to an issue with DreamFolks, impacting thousands of customers. Although services resumed swiftly, banks are now investing efforts in diversifying their lounge access strategies to prevent future inconveniences.
DreamFolks, holding a dominant position in the airport lounge access market, faces potential legal challenges and scaling competition from banks and card networks seeking streamlined operations. Key market players like Adani have highlighted contractual breaches by DreamFolks, further contributing to the shifting dynamics.
(With inputs from agencies.)
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