Airport Lounge: If you travel by air, you must have heard about the lounge built at the airport. Passengers can sit comfortably, drink coffee, eat food, work on laptops or also get a little sleep. Now most people in India reach these louns without paying money. Just swipe its credit or debit card and got an entry. But is it really free? No. Someone else is paying the real bill. Let’s understand how this entire business runs.
Who spends free entry expenses?
According to data analyst Suraj Kumar Talreja, when you enter the lounge with your SBI, HDFC, AXIS, ICICI or Rupay card, you pay direct money bank or card network (eg Visa, MasterCard, American Express). Every time a customer goes to the lounge, the bank pays a fee to the lounge operator. This expenditure is charged not from the customer, but from the bank. That is, you feel that you are eating and drinking for free, but the bank is spending the real expenses so that you stay connected with their cards.
What is found in a lounge?
Consider the lounge like a small 5-star waiting area. Here unlimited buffet food and drinks, high-speed Wi-Fi and charging points, comfortable seats, newspapers and TVs, shower, spa and gold place in some places also make the wait of half an hour also comfortable and fun.
How much does it cost on a visit?
In India, the cost of lounge visit is from Rs 600 to Rs 1200. The cost of international lounge is 25 to 35 dollars i.e. about 2000 to 3000 rupees. This bill pays all this bill. Therefore, the bank makes an advantage only when the customer uses their card as much as possible and then take a premium card.
4 ways of entry in lounge
Credit/Debit Card (Most common method)
International networks like Priority Pass, Loungekey, Dreamfolks
Buying de pass (for Rs 1500–3000)
Airline’s business class ticket or special membership
How does a lounge operator benefit?
Those running lounge get money from the bank according to every visit. The model of his earnings is based on the volume. That is, if thousands of people come every day, then there is a lot of earning from a little margin. Catering companies and airports also have income from partnerships. At the same time, the advantage of the bank is that customers are happy with their card and do more transactions.
Free in appearance, actually strong business model
Airport is a lounge free service for you, but it is a well-planned marketing strategy. Banks bear the expenses of your food and drink so that you keep using their card. Next time when you are drinking free coffee in the airport lounge, remember – it is free, but its bill is going from a bank’s pocket.