Dreamfolks Exits Airport Lounge Business in India: What It Means for Travellers

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Dreamfolks Services Ltd, once India’s largest airport lounge aggregator, has officially shut down its domestic lounge access business. The announcement came on September 16, 2025, marking a major change in India’s airport services sector. While the company continues to operate other services, these contribute only a small portion—about 7%—to its total revenue.

Reason Behind the Closure

The main reason behind this move is the loss of Dreamfolks’ largest clients: banks. Many banks that offered airport lounge access through Dreamfolks have now pulled out. At the same time, airport operators like Encalm at Delhi’s GMR airports and Adani’s Semolina Kitchens in Mumbai and Lucknow have started offering lounge services directly to banks. This increased competition made it difficult for Dreamfolks to continue its lounge business profitably.

Sandeep Sonawane, Chief Business Officer at Dreamfolks, explained that almost 93% of the company’s revenue came from the lounge business. Shutting it down therefore affects a major part of the company’s income.

Impact on Travellers

For passengers who used Dreamfolks lounge services through their bank cards, the closure means they will no longer have automatic access. Travellers will need to check whether their banks have signed new agreements directly with lounge operators. Until new partnerships are made, lounge access will be limited.

Linda Hill, a passenger heading to Southampton, said, “A lounge is important, especially for delays. Without it, you have fewer options to relax before your flight.” Brian McMullan, from Larne, also added that direct access through train or airport services would reduce the need for cars, showing the importance of efficient travel amenities.

Shift to New Services

Dreamfolks is now focusing on services beyond lounges. These include airport pick-up and drop in premium cars, visa application assistance, golf club access, railway lounges, wellness packages, coffee outlets, and social clubs. Chairperson Liberatha Kallat emphasized that the company wants to expand in Southeast Asia and the Middle East through partnerships and strategic acquisitions.

The company reported a total revenue of ₹1,291.88 crore in FY25, with a profit after tax of ₹65.05 crore. Analysts note that replacing over 90% of revenue previously generated by lounges will be a significant challenge.

Disclaimer

This report aims to provide an overview of Dreamfolks’ business changes and their effects on travellers and the company. Readers should verify lounge access and other services with their respective banks or service providers.