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Airport lounges have become a common experience for passengers who travel by air frequently. These lounges provide relief to avoid long lines, crowds, and expensive restaurants. We get many facilities in airport lounges like air conditioning, free food, charging points, Wi-Fi, and comfortable sleeping arrangements at some places.

These facilities give a feeling of luxury. When you enter the airport lounge with your credit or debit card, you feel that this facility is free. But the question is, when we enter the lounge without paying anything, then who bears the expenses?

Every visit costs Rs 600 to Rs 3000

Behind every entry to the airport lounge with a credit card or debit card, there is money paid by your bank. In India, banks usually pay Rs 600 to Rs 1,200 for every visit. If you are going to an international lounge, then this cost can go up to 25 to 35 dollars (about 2,000 to 3,000 rupees).

The bank directly bears this expense, and it is a part of the 'reward benefit' of your card. This means that when you got the card, the bank thought that in return for this facility, you would use the card more, which would give the bank transaction fees. This is also a smart strategy of loyalty and brand building.

Psychological marketing of the bank

Banks present lounge access not just as a facility, but as a status symbol. When a passenger relaxes in a peaceful environment away from the crowd, they feel a connection with their card. Due to this, he uses the same card more, and the bank gets money through transaction fees. Also, the customer is attracted towards the premium card, which gives more profit to the bank.

But in this whole model, everyone is getting some benefit or the other. While passengers are getting facilities on one hand, the bank gets loyalty and transaction fees from the customers. Along with this, the lounge is also getting stable income.

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