DIMINISHING RETURNS

GRAPPLING WITH DECREASING REVOLVER RATES, MARGIN PRESSURES AND THE PREVALENCE OF EASY DIGITAL LOANS, CREDIT CARD PROVIDERS ARE TRIMMING BENEFITS. WHAT DOES THIS MEAN FOR CARDHOLDERS? 

- TEENA JAIN KAUSHAL

DINING AT AIRPORTS can be a seriously pricey affair. A simple vada pav—that costs around ₹50 in an average outlet outside an airport—could potentially be found being sold at five times that price at ₹250 inside airports. If you decide to get it on the plane, the expenses multiply further. Smelling an opportunity, credit card providers were offering complimentary lounge access with some of their cards, making them more appealing for cardholders. For a nominal fee of just ₹1, cardholders could access and enjoy the luxurious buffet available in lounges across airports. This perk has swiftly become one of the most sought-after privileges associated with credit cards after the surge in air-travel post the Covid-19 pandemic.

However, the situation is in a flux now. Long queues for entry into airport lounges is a common sight at almost all major airports today. And even if you manage to get inside, securing a comfortable table requires another massive stroke of luck. The surge in post-pandemic travel has unexpectedly heightened the demand for this perk, surpassing the lounge demand from the pre-Covid-19 era.