Why the Rules Are Changing
For years, complimentary lounge access was a key selling point for credit cards in India. Banks handed out the perk freely to attract new customers. This led to massive overcrowding at airport lounges, with long queues becoming common. The experience,
meant to be premium, was diluted. More importantly, the economics stopped making sense for banks. The cost for a bank every time a cardholder entered a lounge surged, turning a popular feature into a significant expense. With millions of cardholders, many of whom used their cards sparingly except for lounge entry, banks were subsidising a costly benefit without getting profitable spending in return. This post-pandemic travel boom forced issuers like HDFC Bank, ICICI Bank, and Axis Bank to rethink their strategy.
The New Reality: Spend to Enter
The biggest change for most cardholders is the introduction of spending criteria. Simply holding a card that offers lounge access is no longer enough. Many banks now require you to spend a certain amount in a calendar quarter to unlock complimentary lounge visits in the next quarter. For instance, many ICICI Bank cards now require a spend of ₹35,000 in the previous quarter to activate the benefit. Similarly, Axis Bank has implemented a minimum spend of ₹50,000 in the prior three months for many of its cards. This new model ensures that the perk is reserved for customers who actively use their cards for retail purchases, making them more profitable for the bank. Some cards have removed the benefit altogether; for example, the Flipkart Axis Bank Credit Card and Airtel Axis Bank Credit Card no longer offer complimentary lounge access.
How Entry-Level Cards Adapt
Despite the widespread tightening, several entry-level and mid-tier cards still provide lounge access, albeit with conditions. The strategy is to reward consistent spending, not just card ownership. For example, the Scapia Federal Bank Credit Card, which is lifetime-free, offers unlimited domestic lounge access, but only if you spend ₹5,000 in a billing cycle—a relatively low bar. Similarly, some IDFC First Bank cards offer quarterly lounge visits contingent on meeting a monthly spend target of around ₹20,000. These cards represent the new normal for the entry-level segment: lounge access is not an automatic freebie but a reward for regular card usage. This tiered approach allows banks to manage costs while still offering a desirable perk to engaged customers.
Navigating Domestic vs. International Access
It's crucial to understand the difference between domestic and international lounge programs. In India, domestic lounge access is typically managed directly by card networks (Visa, Mastercard, RuPay) or through aggregators like DreamFolks. This is where the new spending criteria are most common. International lounge access, on the other hand, is usually provided via a separate program like Priority Pass or LoungeKey. Many premium and even some mid-tier cards come with a Priority Pass membership, often with a set number of free international visits per year that are not always tied to spending criteria. For instance, a card might require quarterly spends for domestic lounge use but grant a few international visits unconditionally. Always check your card's specific terms for both types of access, as they are rarely the same.
Cards That Still Offer Access Without Spends
While spend-based access is the new norm, a few cards still offer complimentary visits without minimum purchase requirements, though they often come with higher annual fees. The HDFC Marriott Bonvoy Credit Card, for example, provides 12 complimentary domestic lounge visits annually without a spending condition. The IndusInd Bank Tiger Credit Card, which can be lifetime-free, offers two domestic visits per quarter and two international visits per year without a spend gate. These cards are becoming outliers. For most travellers, the path to the lounge now involves strategic spending. Before heading to the airport, it's essential to check your card's app or website to confirm your eligibility and whether you've met the required spending threshold for the quarter.
