How will the closure of Dreamfolks airport lounge services affect travellers?

Airport lounge aggregator Dreamfolks Services Ltd announced the closure of its domestic airport lounge services, effective from September 16. 

"In furtherance of our earlier disclosure dated August 29, 2025, the Company wishes to update that the services of domestic airport lounges have been discontinued to our clients, effective today. The impact of the same is material. The other domestic services and the global lounge business will continue as usual," mentioned the official notice by the firm on their website. 

Dreamfolks confirmed that the existing contracts with their clients would remain active, and the discussions on alternate customer value propositions were in progress. 

Dreamfolks, an aggregator that connects lounge operators with card networks and passengers, began facing challenges after airport operators started looking to offer lounge access directly. Competition intensified after banks started offering the services directly to the banks without the help of the middleman aggregator. 

In August, the company had said that three of its customers — Encalm Hospitality, Adani Digital and Semolina Kitchens — would end their contracts, and that it is expanding its focus on its global lounge business. Earlier in July, Dreamfolks also said it was discontinuing certain programs for clients Axis Bank and ICICI Bank, Reuters reported. 

As per Mint, customers who have bank cards that are still tied to Dramfolks for airport lounge services in the country will face difficulty in accessing the services. However, if the bank has a direct partnership with the lounge operators, customers will get access.