DreamFolks Services Ltd., once India’s leading airport lounge aggregator, has announced it will discontinue domestic airport lounge services with immediate effect.
The move has sparked concern among investors, given the company’s heavy reliance on domestic lounge contracts. While other domestic services and its global lounge business will continue, the exit marks a significant turning point for the company.
WHAT IS DREAMFOLKS?
Founded in 2013, DreamFolks acted as a platform connecting banks, credit card companies, and passengers to airport lounges, food services, baggage handling, and other airport amenities.
At its peak, the company facilitated access to almost 90% of India’s domestic airport lounges, becoming the dominant player in the sector.
WHAT’S HAPPENING?
Over the past few months, several key partners terminated their agreements with DreamFolks. Adani Digital, Encalm Hospitality, and Semolina Kitchens ended their lounge service contracts, and major banks like Axis Bank and ICICI Bank scaled back their collaborations.
These departures have drastically reduced DreamFolks’ domestic lounge network, prompting the company to exit the segment entirely.
The announcement affected investor sentiment immediately.
Shares of DreamFolks fell 5% to Rs 131 on the Bombay Stock Exchange following the news.
Year-to-date, the stock has declined approximately 67%, reflecting both the loss of domestic contracts and broader market concerns about the company’s growth trajectory.
WHAT IT MEANS FOR CONSUMERS?
For consumers, the exit from domestic lounge services means they will need to explore alternatives.
Some banks, such as IDFC Bank, have already shifted to providers like Elite Assist for domestic lounge access.
Customers holding premium credit cards that previously offered lounge access through DreamFolks will need to check with their banks for new arrangements.
WHAT HAS DREAMFOLKS SAID?
DreamFolks has indicated it is focusing on expanding its global lounge operations and exploring alternative services for existing clients.
While these initiatives could help offset losses, the challenges in regaining market confidence and re-establishing strong domestic partnerships remain significant.
The exit from domestic airport lounges is a critical juncture for DreamFolks. While international operations continue, the loss of major domestic contracts and the decline in stock value highlight the company’s vulnerability in a changing market.
Investors and customers will be watching closely to see how DreamFolks navigates this transition and whether it can restore growth and confidence in the coming months.
– Ends