Why India’s airport lounges are just as crowded as a train station

India’s travel statistics have surpassed those of the pre-COVID era, therefore we’ve recently seen an increase in passengers using the same amount of space in the lounge, as well as a significant number of people using debit and credit cards to get entry and wait in queue.

When the lounge was opened, it was intended to be a private space for business travellers who needed some alone time to unwind, work, and have a bite to eat before their flight. Making people productive at the airport was the plan. Instead, it became a place to overindulge in cold beverages and snacks while charging electronics.

The issuing banks and card firms began providing lounge admission as a perk to boost credit card penetration. Things that were previously exclusive to certain frequent flyer statuses or premium service classes were suddenly made available to specific cardholders. However, given that admission fees are only ₹2, how does the business actually function?

In exchange for the cardholder’s “free” admission, the card company pays an airport lounge a pre-negotiated cost each time the cardholder visits the lounge. The lounge will then logically profit more if the visitor who was granted “free” admission chooses to make a purchase while there.