I think at the end of the day, we have to think from the perspective of the person who is picking the tab. The card companies. . If their core business is growing at say 25%, there is no way they can support growth of say 65% in the benefits that they give to the card holders. This will eat away from their margins. They might have allotted certain portion of their expenses/revenue for this benefit. There is no doubt on the pull factor of this benefit for customer retention/acquisition. But that doesn’t mean they can keep spending incremental amounts of money every year and let it eat into their margins.
So, i think some sort of equilibrium has to be reached, where the growth rate of spend under lounge access has to come in range of the card companies core business growth. This can come via measures that credit card companies are now taking by way of restricting access to high spend customers etc. This is natural, we should keep hearing about more such measures until that equilibrium is reached. This could keep the stock price under cloud.
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