DreamFolks, a major player in India’s airport lounge business, has experienced a significant drop in its share price, falling by 70%. This decline can be attributed to a recent trend in which airports and lounge operators are establishing direct relationships with banks, bypassing intermediaries like DreamFolks.

Previously, DreamFolks held a dominant position in the market, with nearly 90% of India’s lounge business going through them. However, as more and more operators are choosing to work directly with banks, DreamFolks has seen a decline in their business.

Leading the way in this trend are banks such as ICICI and Axis, who were among the first to establish direct relationships with airport and lounge operators. Now, other major banks are following suit, which has further impacted DreamFolks’ business.

This shift in the market has also resulted in inconvenience for travelers, as seen in the case of Benu Singhal at Delhi Airport. Due to the direct relationship between the airport and the bank, his Tata Neu card was not accepted at the lounge, causing him to express his frustration on social media.

DreamFolks’ decline in business has also been reflected in their stock price, which has plummeted by 70%. This has caused concern among investors and has led to a reevaluation of their investment in the company.

In the past, DreamFolks had a significant advantage in the market, as they were the main intermediary between banks and airport and lounge operators. This allowed them to charge a premium for their services. However, with the emergence of direct relationships between banks and operators, DreamFolks’ position in the market has weakened.

The impact of this trend is not limited to DreamFolks alone, as other players in the lounge business are also feeling its effects. With a decrease in business, they may also face financial struggles.

In conclusion, the airport lounge business in India is experiencing a shift, with a growing number of operators choosing to work directly with banks instead of intermediaries like DreamFolks. This has resulted in a decline in DreamFolks’ share price and has raised concerns among investors. Only time will tell how this trend will continue to affect the market and its players.