Thank you so much Mahesh. Really appreciate. Wonderfully explained. Thats the beauty of this forum.
So i understand fortune of DFS is dependent on lounge traffic which is increasing rapidly and the traffic mainly comprises of credit card holders that get free access. I dont know about current credit card growth, but with several digital wallets / fintech apps (with post paid features) coming in a big way, credit card future looks gloomy – hence banks offering more such priveleges to lure customers (its their customer acquistion / retention cost)
Perhaps these fintech apps may also start giving lounge access to attract customer or make them spend higher (like banks giving for credit cards). I guess DFS should be getting some license fee / SAAS revenue from lounge operators as well
Hypothetically, if banks / apps stop giving such access, lounge traffic may dry down. I believe and trust DFS is trying to de-risk the business model and building other revenue alternatives within airport solutions.
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