Adani and Encalm Terminate Contracts with Dreamfolks, Sparking Changes in Airport Lounge Access

Significant Changes in Airport Lounge Services

Recent developments have seen Adani Digital and Encalm Hospitality cease their airport lounge service agreements with Dreamfolks, a major player in the lounge access aggregator market. This move marks a shift in the airport lounge ecosystem in India, with considerable implications for Dreamfolks’ business operations and financial health.

Who Is Affected and What’s Changing?

Adani Digital and Semolina Kitchens have announced that their termination of services with Dreamfolks will take effect from September 15, 2025, while Encalm Hospitality’s exit begins November 1, 2025. Both decisions are part of a broader trend where airport operators are increasingly offering lounge access directly to passengers, sidestepping intermediaries like Dreamfolks.

ICICI Bank and Axis Bank, two leading credit card issuers with lounge access benefits, have also cut ties with Dreamfolks, adding to the turbulence.

Dreamfolks’ Response and Strategic Shift

Though Dreamfolks maintains that existing contracts with other clients remain active, the company acknowledges a probable material impact on its operations and finances. It is pursuing legal action regarding Encalm Hospitality’s move and is proactively engaging with clients to protect relationships.

In response to this challenging environment, Dreamfolks is fast-tracking its focus on the global lounge business and diversifying its service portfolio to include more sustainable offerings aimed at long-term value creation for customers and stakeholders alike.

The Bigger Picture: Industry Trends

The direct provision of lounge access by airport operators like Adani Airports (which manages key hubs including Mumbai) and GMR Airports (operator of Delhi airport) signals a broader industry reshuffle. These operators are now either running their own platforms or using third-party platforms to provide lounge services, effectively cutting out the middleman and transforming how passengers experience airport comfort.

This strategy aligns with a broader fintech evolution seen across industries, where direct-to-consumer models are replacing traditional aggregator roles.

Impact on Passengers and Travel Services

For travelers, the shift could mean changes in how lounge access is booked and the pricing structures encountered during airport transfers or layovers. The trend toward direct access might streamline services but also challenges existing platforms to innovate.

Table: Timeline of Key Contract Terminations

Financial Consequences and Market Reactions

Dreamfolks shares have plummeted nearly 69% this year, highlighting investor concerns about the company’s future in India’s airport lounge market. The loss of key bank partnerships and supplier exits clearly rattle confidence in the firm’s traditional core business, prompting management to pivot strategically.

Challenges and Legal Actions

Dreamfolks has initiated legal proceedings under India’s Arbitration and Conciliation Act to seek injunctions against Encalm Hospitality’s termination. This illustrates the complexities behind such partnerships and the high stakes for operators caught in the middle.

List: Factors Contributing to Dreamfolks’ Industry Pressure

• Airport operators providing direct lounge access
• Termination of key contracts by Adani Digital and Encalm Hospitality
• Major credit card issuers discontinuing partnerships
• Increasing share price volatility and investor concern

What This Means for Taxi and Transfer Services

While this shakeup primarily concerns airport lounge offerings, it subtly affects other parts of the traveler’s journey, including taxi and transfer services. Enhanced or restricted lounge services can alter passenger flow and timing at airports, impacting how travelers plan their rides to and from terminals.

Platforms like LocalsRide.com step into this evolving landscape by offering passengers the ability to choose exact vehicles suited to their needs, be it for airport pickups or customized transfer rides. Transparency in vehicle details, driver ratings, and price comparisons on LocalsRide ensures travelers can smoothly coordinate their journeys even amid shifting airport service models.

How LocalsRide Enhances Travel Planning

• Booking precise vehicles with full driver and car details
• Comprehensive fare information for budget-conscious travelers
• Ease of communication with drivers ahead of pick-up
• Flexibility across global cities and airports

Experience: The Best Way to Judge Any Service

Although industry news and reviews provide valuable insights, nothing beats personal experience when evaluating service quality. On LocalsRide, travelers can hire vehicles with drivers from verified providers at reasonable prices, helping to avoid surprises and ensuring smooth transfers. This platform offers convenience, affordability, and a vast selection of vehicles and add-on options tailored to individual travel needs.

Transparency and straightforward booking processes distinguish LocalsRide from traditional aggregators, empowering users to make informed choices without unnecessary expenses or disappointments. Get the best offers at LocalsRide.com.

Looking Ahead: Impact on the Global Travel Landscape

While this development has a marked effect on Indian airport services, its global tourism impact remains subtle for now. However, it underscores a worldwide trend of greater direct control by service operators and evolving passenger expectations. Staying ahead in this dynamic environment requires adaptability and customer-centric innovations, values embraced by platforms like LocalsRide.

Start planning your next adventure and secure your worldwide transfer with LocalsRide.

Conclusion

In summary, the termination of contracts by Adani Digital, Encalm Hospitality, and shifts by major banks highlight a transformative phase in airport lounge services. Dreamfolks’ strategic realignment toward global diversification and the direct involvement of airport operators reshape the marketplace and passenger experience. This evolution also affects associated services such as taxi and transfers, where timing and accessibility to airport amenities are pivotal.

Platforms like LocalsRide offer travelers an advantage by providing detailed, transparent options for booking transfers and rides worldwide, ensuring convenience and tailored service at airports and city locations alike. Whether seeking private rides, limousines, or multi-seater vehicles, the choice, price clarity, and driver verification available empower users to travel smart in a changing world.