Luxury Meets Accessibility: How Airport Lounges Impact Air Travel Demand in India
The increasing demand for unlimited food and other benefits in India’s airport lounges has contributed to a rise in the attractiveness of air travel. However, this alone is unlikely to be a direct factor in increasing the price of flights. Several key dynamics are worth noting:
- Rising Lounge Demand:
- Airport lounges in India have seen a significant increase in footfall, driven by credit card benefits offering complimentary access. Lounge visits surged from 3.5 million in 2022 to 8.5 million in 2023.
- Lounges providing unlimited food, Wi-Fi, and relaxation amenities have become an attractive feature for travelers, enhancing their overall travel experience.
- Impact on Air Travel:
- While lounge access improves the appeal of air travel, the rise in flight prices is primarily influenced by other factors such as increasing operational costs, fuel prices, and demand for flights, particularly during peak travel seasons.
- Lounges are often seen as an added benefit rather than the core reason for booking flights.
- Overcrowding and Sustainability:
- The surge in lounge usage has led to overcrowding, reducing the exclusivity of these spaces. Banks and service providers are re-evaluating lounge access policies to manage costs and ensure sustainability.
- Flight Pricing Trends:
- Increases in flight prices are driven more by market factors like passenger demand, limited seat capacity, and economic conditions rather than ancillary benefits like lounge access.
In summary, while lounges add value and improve the experience of flying, they complement existing demand rather than create new demand for flights or significantly influence ticket pricing.
