Good questions @divygupta which are well answered by @rajpanda .
As per my understanding its not tender based process, its more of corporate relationships which will get you the deal.
Banks/card network providers may not be interested in this business as it may not move the needle for them. Lets take Dreamfolks revenue as 600 cr for the year and assume HDFC cards contribute around 20% of it. ( HDFC card market share is 21%). By directly integrating with lounge operators HDFC can save revenue of 120 Cr( 20% of 600 cr). Out of this 120Cr , they have to pay around 85% (102Cr ) to lounge operators. Remaining 18Cr is the actual revenue saved for HDFC and add separate employee, system integration, installing you software/devices at lounges, tying up and maintaining accounting/invoicing around 18 lounge operator’s across India. At the end HDFC may not save more than 10-15cr. Compare it with HDFC net profit of 46,000 Cr for FY23.
In my view there is not enough incentive for the banks/network providers to do this as it may not move the needle for them.
Its still possible that banks or new platforms companies( like ezydinner etc who already have some relationship with card network providers) may enter the space and that’s the risk we have to be aware.
Probably you are right. Based on my scuttlebutt and reading looks like priority pass has access to most of the premium lounges and dreamfolks seems to have less market share here. This is one of the question I want to ask management during Q4 concall scheduled on 24th May at 11.00 AM
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