Adani Airports and Encalm Hospitality have terminated their lounge service contracts with Dreamfolks Services, ending a long-standing collaboration that had been central to providing premium passenger experiences across several airports. The decision is expected to reshape the airport lounge services landscape, impacting both frequent flyers and corporate travellers who rely on these facilities.
According to industry sources, the Adani Group, which operates several major airports including those in Mumbai, Ahmedabad, Lucknow, Mangaluru, Guwahati and Jaipur, had been working with Dreamfolks for years to manage passenger access to lounges through various bank card tie-ups and membership programs. Encalm Hospitality, which runs lounges at major airports such as Delhi, Hyderabad, and Goa, also had service contracts with Dreamfolks. Together, these partnerships allowed Dreamfolks to dominate the lounge access market in India by integrating with credit card companies and loyalty programs. However, the recent termination marks a decisive shift. Adani and Encalm have decided to move away from Dreamfolks’ aggregator model and bring in their own direct arrangements with banks, financial institutions, and service providers. Officials from the aviation sector noted that this transition will give airport operators greater control over pricing, customer experience, and service quality.
For passengers, the change could mean adjustments in how lounge access is granted. Many travellers in India currently enjoy complimentary lounge entry as part of their credit or debit card benefits, most of which were facilitated through Dreamfolks. With the contracts now ended, Adani and Encalm are expected to design new mechanisms for bank partnerships and direct access programs. Industry analysts suggest that while this may initially cause some disruption for frequent flyers, in the long run it could lead to improved facilities, more exclusive offerings, and a wider choice of services. The development also signals intensifying competition in the Indian airport lounge market. Dreamfolks, which has built its reputation as the country’s largest airport service aggregator, will now face challenges in maintaining its market share without the backing of Adani and Encalm’s lounge networks. On the other hand, Adani Airports and Encalm are likely to push for building stronger in-house brand identities for their lounges, positioning them as premium destinations for comfort, dining, and business convenience.
Experts believe this move reflects the broader trend of airport operators seeking greater autonomy over passenger services rather than depending on third-party aggregators. With India witnessing a surge in air travel and rising demand for premium services, control over lounge management is being seen as a key differentiator in enhancing passenger experience and boosting non-aeronautical revenue. While the immediate impact on passengers is still unfolding, the industry anticipates that Adani and Encalm will soon announce new partnerships and access models to ensure a smooth transition. Travellers, especially those flying during the festive season, are advised to check with their banks and airlines for updated lounge access details.
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