Why are banks limiting free airport lounge access?

Airports, especially in major cities, are now witnessing crowded lounges due to banks' complimentary offers. However, banks are facing the cost of lounge access, prompting them to cut back.

HDFC Bank is introducing changes, making access based on credit card spending. IDFC First Bank and ICICI Bank have also set spending criteria for lounge access. SBI's Cashback Card discontinued lounge benefits from May 1.

Initially, premium cards offered this perk, but during the pandemic, even entry-level cards included it, leading to overcrowded lounges. To mitigate losses, banks are revising product features to limit lounge visits.

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