Dreamfolks Services Ltd, a leading travel and lifestyle aggregator known for providing airport lounge access services across India, announced on September 16, 2025, that it has ceased all domestic airport lounge services in India with immediate effect. This landmark decision marks a major change in the domestic lounge access business landscape in India, driven by evolving industry dynamics and a shift in airport operators’ business models.
The company clarified in an official statement to the stock exchanges that while its domestic airport lounge services have been discontinued, its other domestic lifestyle offerings and international airport lounge operations will continue without disruption. Dreamfolks assured stakeholders that existing contracts with partner banks, card issuers, and other clients remain in force and that it is actively engaging with them to explore alternative value propositions.
Background and Context
Dreamfolks, founded in 2013, carved a niche by aggregating lounge providers and linking them with credit and debit card networks to enable seamless lounge access for travelers. At its peak, the company managed access to over 76 airport lounges across India and partnered with more than 20 major banks including HDFC Bank, ICICI Bank, Axis Bank, and SBI Card. Over the years, Dreamfolks enjoyed a dominant market share of almost 90% in the domestic airport lounge segment for card-based programs.
However, starting in 2024 and intensifying in 2025, the landscape began to shift dramatically. Several key lounge service providers, particularly entities operated by airport groups such as Adani Digital and Semolina Kitchens, as well as Encalm Hospitality which serves GMR airports, started terminating their agreements with Dreamfolks. This began with notices served to Dreamfolks for discontinuation of contracts effective by mid-September 2025, with some extensions up to November 2025.
Reasons Behind the Exit
The primary reason cited by the airport lounge operators for terminating relationships with Dreamfolks was the emergence of direct-to-consumer business models. Major airport operators like Adani Airports launched their own platforms to deal directly with banks and card issuers, effectively making intermediaries redundant. According to industry insiders, Adani Airports CEO Arun Bansal highlighted fintech platforms’ evolution as a key factor reducing reliance on aggregators like Dreamfolks.
Furthermore, there has been increasing pressure from airport operators who are expanding their own lounge access services and prefer to negotiate directly with banks, bypassing third-party aggregators. This move allows airport groups to retain greater control over lounge operations, customer experience, and revenue streams.
Dreamfolks has expressed concern over these developments, noting that the pressure from airport operators entering the lounge business has severely affected its commercial relationships. The company also disclosed filing a petition under the Arbitration and Conciliation Act to seek remedies related to contract terminations by Encalm Hospitality.
Financial and Market Impact
The termination of these contracts has had an immediate and significant material impact on Dreamfolks’ business operations and financials. Following this announcement, Dreamfolks’ shares plunged sharply, hitting a lower circuit limit of 5% and trading at around Rs 131 on the NSE and BSE, reflecting waning investor confidence. The company’s stock has declined by approximately 70% so far in 2025, marking a challenging phase.
Despite these setbacks, Dreamfolks is pivoting focus towards expanding its global airport lounge business and other domestic services outside the lounge access domain. The company is actively holding discussions with remaining clients to devise alternative offerings and maintain service continuity.
Customer Advisory and Future Outlook
Passengers who have enjoyed Dreamfolks-facilitated domestic lounge access through their bank credit cards or other membership programs are advised to check with their respective banks and card issuers for updates on lounge access eligibility and terms. Major banks such as HDFC Bank, SBI Card, and others are reported still to be linked to Dreamfolks for certain services, though disruption during the transition period is anticipated.
Industry experts suggest that the lounge access market in India is entering a phase of consolidation and transformation with private airport operators and travel service providers experimenting with new models. Customers can expect a mix of direct lounge access schemes, aggregator alternatives, and bundled lifestyle services emerging in the near term.
Dreamfolks remains committed to navigating this evolving landscape by enhancing its global footprint and innovating its service offerings. The company has promised transparent communication with stakeholders as negotiations progress and new terms take shape.
About Dreamfolks Services Ltd
Dreamfolks Services Ltd is a leading travel and lifestyle aggregator enabling airport lounge access and related services. Established in 2013, the company connects lounge operators in India and abroad to banks, card networks, and travelers, delivering seamless lounge experiences across multiple airports.
