If you often travel by air, then you must have heard the name of an airport lounge. These lounges give passengers an experience like a small 5-star hotel. Here you can drink coffee, enjoy an unlimited buffet, work on a laptop, or even take a little sleep while sitting on comfortable seats.
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The truth of free service
Most people think that this facility is free, but the real bill is paid by the bank or card companies. Whenever you enter with your SBI, HDFC, Axis, ICICI, or Rupay card, the bank pays a fee to the lounge operator. That is, the coffee and food that you think is free are actually being paid for by the bank from its own pocket.
How much does one visit cost?
In India, the cost of one lounge visit ranges from Rs 600 to Rs 1200. In the international lounge, the same expense is 25 to 35 dollars, i.e., approximately 2000 to 3000 rupees. This amount is paid by the bank or card network. The bank recovers this investment from the customer in the form of loyalty and attraction towards premium cards.
Lounge facilities
In the lounge, passengers get the facility of high-speed internet, a charging point, a TV, a newspaper, comfortable chairs, and a buffet. Some lounges also have a shower, spa, and sleeping space. This makes even a long wait comfortable.
Ways to reach the lounge
There are many ways to enter the lounge. The most common way is through a credit or debit card. Apart from this, international networks like Priority Pass, LoungeKey, or Dreamfolks also provide entry. You can also buy a day pass directly, which costs from 1500 to 3000 rupees. This facility is also available with a business class ticket or a special membership of the airline.
How the business model works
The lounge operator gets money from the bank on every visit. Their earnings depend on volume. Thousands of passengers use the lounge every day, due to which even a small margin turns into a big income. On the other hand, for the bank, this is a marketing strategy so that the customer uses their card for a long time.
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Free in appearance, actually a strategy
Even though the airport lounge may seem like a free service to you, the reality is that it is a well-thought-out strategy of the bank and the card network. The real purpose of this model is to keep the customer attached to their card by giving them a better experience.