I don’t believe a bank will want to integrate their Credit Card systems with a new player just to save a few bps (especially when the absolute amount is not significant). Lets assume DF insist on increasing charges to Rs 1000 instead of Rs 900. What does a bank do ? Walk away and risk losing their CC customers to competition ? The key risk is competition and till such time a credible competitor emerges, the business is safe. If anything the declining margins may actually discourage potential new competitors.
The Airport Operators having seen a surge in footfalls would have sensed an additional revenue potential and hence more CAM charges. And they have the strongest bargaining position. However while Airport Operator, Lounge Operator, DF and Bank fight on the distribution of the pie, doubt whether anyone would want to disrupt the overall footfalls since then the overall revenue pie shrinks. As long as footfalls increase, everyone makes money. If it falls, everyone loses, even with the best bargaining power.
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