The growth of airport lounges in India is reshaping the country’s travel landscape. Over 60 lounges now operate across more than 140 airports nationwide. This expansion has sparked a parallel trend in the railway sector, with executive lounges opening at major transit hubs including Chennai Central, New Delhi, and Varanasi stations.
Comfort and Luxury Drive Market Expansion
“Airport lounges hold a special allure for Indian travelers. Some of the key factors for this include comfort, convenience, and food. The sense of luxury and exclusivity associated with airport lounges is also a significant draw,” Vikas Sharma, CEO of airport lounge operator Encalm Hospitality told Skift.
The surge in India’s travel lounge demand has become increasingly linked to the credit card industry. Recent research by Collinson International reveals that 48% of Indian millennials prioritize travel benefits, including airport lounge access when selecting credit cards.
Furthermore, nearly 90% of Indian respondents now consider airport lounge access an essential feature for any credit card with an annual fee.
Credit Cards for Airport Lounges in India
“Consumers in India rate airport lounge access as one of the most appealing travel-related rewards,” said Sumit Prakash, Collinson International’s country director for India and South Asia.
In response to this growing demand, the company has expanded its network of airport lounges and travel experiences in India by 15% since late 2023.
The trend has become so pronounced that 89% of cardholders would consider switching to new credit cards for airport lounges if their current provider discontinued lounge membership benefits. “Credit card companies actively promote lounge access benefits through marketing campaigns and direct communication,” Sharma noted.
“Increased travel-related investment, coupled with Indian travelers placing a greater value on travel experiences, presents opportunities for financial services brands to design strong travel-experience propositions,” Prakash added, highlighting the growing convergence of travel perks and financial services in India’s evolving travel sector.
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