- Date : 17/09/2023
- Read: 3 mins
Discover why banks are reducing free airport lounge access and how does it impacts credit card holders. Read this complete article to stay informed.
If you are a frequent flyer, you probably know the value of airport lounge access. It can make your travel experience more comfortable, relaxing, and enjoyable. You can enjoy free food, drinks, Wi-Fi, and other amenities while waiting for your flight. But did you know that this perk is becoming harder to get with your credit card? Banks and credit card companies are cutting down on free airport lounge visits for their customers, due to rising costs and overcrowding. This article discusses what is happening and how it affects you.
Highlights:
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Banks/ credit cards cutting lounge benefits
-
Rising costs, overcrowding to blame
-
Lounge visits cost bank a fee
-
Banks set spending criteria for free lounge access
Also Read: 5 best travel credit cards in India
If you (credit cardholder) want to enjoy free airport lounge access, you need to act smart. Banks are making it harder to get this benefit by cutting down on free visits and asking for more spending. You should choose a credit card that gives you lounge access and make sure you spend enough to qualify. You should also check the blackout dates when lounge access is not available. You could also get a separate card with no annual fee for lounge access.
What is the mechanism of free airport lounge access?
Credit card users can enjoy free airport lounge access when their banks have a tie-up with a card network such as MasterCard or an aggregator such as PriorityPass. These entities charge a fee per visit to the banks and provide them with lounge benefits at various airports around the world.
Are lounge benefits actually free?
Banks pay for your free airport lounge access when you use their credit cards. You save money and enjoy lounge benefits, but banks spend less than you think. They get a lower rate (generally between Rs. 200 to 1000 per visit) than the normal price, which depends on the place and their deal. It is worth mentioning here that costs of international lounges would be much higher.
Financial Challenge: Rising Costs of Free Airport Lounge Access
Banks struggle to give free lounge access to credit card users. Many customers enjoy lounge benefits without spending much on their cards. Banks don’t earn from them. To address this, banks now require customers to spend a specific amount within a set time to get free lounge access. For instance, IDFC First Bank's lifetime free cardholders must spend Rs. 5000 in the previous month. ICICI Bank has similar requirements for premium cardholders. To cut costs, some banks have had to remove lounge access benefits from certain cards, like SBI Cards's cashback card.
Also Read: 8 types of credit cards before you choose one
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.
Click here for the latest articles on Credit-cards
If you are a frequent flyer, you probably know the value of airport lounge access. It can make your travel experience more comfortable, relaxing, and enjoyable. You can enjoy free food, drinks, Wi-Fi, and other amenities while waiting for your flight. But did you know that this perk is becoming harder to get with your credit card? Banks and credit card companies are cutting down on free airport lounge visits for their customers, due to rising costs and overcrowding. This article discusses what is happening and how it affects you.
Highlights:
-
Banks/ credit cards cutting lounge benefits
-
Rising costs, overcrowding to blame
-
Lounge visits cost bank a fee
-
Banks set spending criteria for free lounge access
Also Read: 5 best travel credit cards in India
If you (credit cardholder) want to enjoy free airport lounge access, you need to act smart. Banks are making it harder to get this benefit by cutting down on free visits and asking for more spending. You should choose a credit card that gives you lounge access and make sure you spend enough to qualify. You should also check the blackout dates when lounge access is not available. You could also get a separate card with no annual fee for lounge access.
What is the mechanism of free airport lounge access?
Credit card users can enjoy free airport lounge access when their banks have a tie-up with a card network such as MasterCard or an aggregator such as PriorityPass. These entities charge a fee per visit to the banks and provide them with lounge benefits at various airports around the world.
Are lounge benefits actually free?
Banks pay for your free airport lounge access when you use their credit cards. You save money and enjoy lounge benefits, but banks spend less than you think. They get a lower rate (generally between Rs. 200 to 1000 per visit) than the normal price, which depends on the place and their deal. It is worth mentioning here that costs of international lounges would be much higher.
Financial Challenge: Rising Costs of Free Airport Lounge Access
Banks struggle to give free lounge access to credit card users. Many customers enjoy lounge benefits without spending much on their cards. Banks don’t earn from them. To address this, banks now require customers to spend a specific amount within a set time to get free lounge access. For instance, IDFC First Bank's lifetime free cardholders must spend Rs. 5000 in the previous month. ICICI Bank has similar requirements for premium cardholders. To cut costs, some banks have had to remove lounge access benefits from certain cards, like SBI Cards's cashback card.
Also Read: 8 types of credit cards before you choose one
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.
Click here for the latest articles on Credit-cards
