DreamFolks suspends domestic airport lounge services amid contract losses
ANI
Synopsis
DreamFolks Services Ltd has suspended its domestic airport lounge services, citing it as a material event. This decision follows the termination of lounge agreements by Adani Digital, Semolina Kitchens, and the upcoming exit of Encalm Hospitality. The company is actively discussing alternative value propositions with clients while maintaining its existing contracts with banks and card partners.
By Forum Gandhi, ET Bureau
DreamFolks Services Ltd has suspended its domestic airport lounge services, a move it described as “material” in a stock exchange filing.
Other domestic offerings and its international lounge access business remain operational. DreamFolks said it is in active discussions with clients to provide alternative value propositions, while assuring that its current contracts with banks and card partners continue to remain in force.
The announcement follows a string of contract losses. Adani Digital and Semolina Kitchens terminated their lounge agreements with DreamFolks in mid-September, and Encalm Hospitality is set to follow in November. The exits mark a significant shake-up for the aggregator, which built its model on connecting banks and passengers to lounge operators.
Adani Airports has justified its decision by pushing a direct-to-consumer model, with CEO Arun Bansal stressing that fintech platforms have made “middlemen” redundant. DreamFolks, meanwhile, has warned that pressure from airport operators expanding into the lounge business is weighing heavily on its commercial relationships.
The company has said it will keep its stakeholders updated as the situation evolves.
ADVERTISEMENT
“DreamFolks Services Limited has discontinued its domestic lounge access services with effect from today. The discontinuation…is material in nature,” the company told the stock exchanges.Other domestic offerings and its international lounge access business remain operational. DreamFolks said it is in active discussions with clients to provide alternative value propositions, while assuring that its current contracts with banks and card partners continue to remain in force.
The announcement follows a string of contract losses. Adani Digital and Semolina Kitchens terminated their lounge agreements with DreamFolks in mid-September, and Encalm Hospitality is set to follow in November. The exits mark a significant shake-up for the aggregator, which built its model on connecting banks and passengers to lounge operators.
Adani Airports has justified its decision by pushing a direct-to-consumer model, with CEO Arun Bansal stressing that fintech platforms have made “middlemen” redundant. DreamFolks, meanwhile, has warned that pressure from airport operators expanding into the lounge business is weighing heavily on its commercial relationships.
The company has said it will keep its stakeholders updated as the situation evolves.
ADVERTISEMENT
(You can now subscribe to our Economic Times WhatsApp channel)
