Dream Folks Shares Plunge Services Faces Turbulence as Shares Hit 5% Lower Circuit After Key Business Update
For frequent flyers, airport lounges often serve as a quiet sanctuary before boarding a flight. That’s why the latest update from DreamFolks Services, a company that has long been at the center of lounge access in India, has sent shockwaves through both travelers and investors. On Tuesday, the company announced that domestic airport lounge services for its clients have been discontinued, and by Wednesday morning, its shares had already hit the 5% lower circuit at ₹131.07 on the NSE.
The announcement, made through a regulatory filing, was more than just a routine update—it was a move with far-reaching implications. DreamFolks admitted that the impact of discontinuing domestic lounge access is “material,” though it reassured clients that global lounge services and other domestic offerings will continue without disruption. The firm also stressed that its contracts with banks, card networks, and corporate clients remain valid, and discussions are already underway to create new customer value propositions.
A Stock in Decline
For shareholders, this latest news only deepens the pain of what has been a long slide. DreamFolks’ share price has been on a downward spiral for the past year. According to exchange data, the stock has crashed by nearly 73% over the last 12 months, declined 65% so far in 2025, dropped 35% in just the past six months, and slipped over 5% in the last 30 days alone.https://english.akeletime.com/
This decline reflects not just investor sentiment but also broader challenges in DreamFolks’ business model. Once considered a near-monopoly with 90% market share in India’s domestic lounge access segment, the firm has been facing increasing pushback from major banks and card networks. Earlier this year, reports suggested that financial giants like ICICI Bank, Axis Bank, and Mastercard were exploring ways to cut out aggregators like DreamFolks and instead strike direct deals with airport lounge operators.
The Changing Face of Airport Services
DreamFolks Services has built its reputation as an airport services aggregator, providing a proprietary tech-driven platform that integrates banks, airlines, card networks, and travel operators with airport lounge providers. Beyond lounges, the company also offers services like curated food and beverage combos at airport restaurants, spa access, meet-and-assist services, airport transfers, and even transit hotels.
But in an industry where customer experience is paramount, reliability is key. In September 2024, DreamFolks had already faced a nationwide disruption when access to dozens of airport lounges was suddenly cut off, leaving thousands of passengers stranded in overcrowded terminals. While the issue was resolved within a day, it was a wake-up call for banks and card networks who began actively seeking alternative solutions.
This latest development—an outright discontinuation of domestic lounge services—only adds to concerns about the sustainability of DreamFolks’ aggregator model. While the company continues to dominate the market on paper, cracks in its relationships with key partners could reshape the competitive landscape.
Searching for a Way Forward
Despite these setbacks, DreamFolks is not throwing in the towel. The company has emphasized that it is in talks with its partners to design new ways of delivering value to end customers. With international lounge services and other offerings still active, DreamFolks has an opportunity to reposition itself in the travel and lifestyle space.
However, the road ahead looks challenging. Investors are increasingly wary, and competitors are eager to fill any gap left behind. For travelers, it remains to be seen how soon banks and card networks will step in with direct tie-ups or alternative solutions to ensure seamless lounge access.
A Market at a Crossroads
The aviation and travel services industry is evolving rapidly, shaped by changing customer expectations, tighter regulations, and a renewed focus on reliability. DreamFolks’ struggles highlight the risks of overdependence on aggregator models in industries where real-time service delivery can make or break reputations.
For now, the company remains a dominant player, but its ability to innovate, rebuild trust, and secure long-term partnerships will determine whether it can soar again—or continue its descent.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a certified financial advisor before making any investment decisions.
