According to NDTV, former banker and data analyst Suraj Kumar Talreja explained that it is banks and card networks—not passengers—who bear the cost of lounge access. These institutions reimburse operators every time a cardholder swipes in, presenting the service as a bundled card benefit.
The hidden costs behind the comfort
As per The Economic Times, lounge operators in India charge banks anywhere between ₹600 and ₹1,200 for a domestic visit. For international lounges accessed through global networks like Priority Pass or LoungeKey, the fee rises to US$25–35 per entry.
The payout covers meals, beverages, Wi-Fi, rest areas, and sometimes even sleep pods or spa services.
This arrangement allows lounges to stay profitable without relying heavily on passengers directly paying at the counter. Occasional walk-in passes still exist, but the bulk of revenue flows from partnerships with financial institutions.
Why banks offer the perk?
The expense is not charity. As per The Economic Times, banks view lounge access as a strategic customer acquisition and retention tool. By offering comfort during long layovers or delays, lenders and card issuers build loyalty, nudge more spending, and create a perception of premium service. Often, the costs are factored into card annual fees or the broader economics of credit.
A win-win model
Industry reports suggest that this ecosystem creates a rare three-sided benefit. Passengers receive complimentary comfort, lounges secure steady income, and banks strengthen their competitive edge.
What appears to be a ‘free’ sandwich or recliner at the terminal is, in effect, funded by the very financial system that passengers engage with through their cards.
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First Published: Aug 28, 2025 9:44 AM IST
