Airport lounge
The airport lounge has often become a common experience for passengers traveling by flight. These lounge gives a relief experience to avoid long lines, congested and expensive restaurants. In the airport lounge, we get many types of facilities such as air conditioning, free food, charging points, Wi-Fi and comfortable gold arrangements in some places.
These facilities make it feel luxury. When you enter the airport lounge with your credit or debit card, you think this facility is absolutely free. But the question is that when we enter the lounge without paying anything, then who is charging its expenses.
Every visit spends from 600 to 3000 rupees
The money paid by your bank is behind every entry with credit card or debit card at the airport lounge. In India, banks usually pay from 600 to 1,200 rupees for every visit. If you are going to the international lounge, then this price can reach $ 25 to 35 (about 2,000 to 3,000 rupees).
These expenses directly raise the bank and it is part of the ‘reward benefits’ of your card. This means that when you made the card, the bank thought that you will use the card more in exchange for this facility, so that the bank will get transaction fees. This is also a smart strategy of loyalty and brand building.
Bank’s psychologist marketing
Banks offer louge access not just facilities, but like a status symbol. When a passenger moves away from the crowd and rests in a peaceful environment, he feels a connection with his card. With this, he uses the same card more, and the bank gets money through transaction fees. Also, the customer is attracted towards the premium card, which makes the bank more profit.
But in this entire model, everyone is getting some benefit. While passengers are getting facilities on one side, the bank gets the loyalty and transaction fees of the customers. Along with this, the lounge is also getting stable income.