Reflected on your analysis. Considering that fact that a Plate of Dosa and Coffee can cost Rs 350-400 in a Domestic Airport, an annual fee of Rs 1000-1500 for a premium credit card that offers free Food (in Lounges) may still be a viable proposition. And Indians are very good at doing these calculations.
Have also seen that some Lounges have created an extension to acommodate the surge in demand. Despite this, some people are not able to enter the lounge due to huge rush. In Mumbai one Lounge does not allow people to enter earlier than 4 hour of flight takeoff (should improve footfalls). So even if some banks reduce the eligibility and the numbers don’t drop substantially where Lounge capacity utilisation falls, it should be fine.
The current trend should also lead to creation of Premium Lounges (For Business Class etc), where the freebie seeking crowd is not allowed. That may lead to incremental revenue for DFS.
Disclosure : Invested.
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