Devaluation Yes Bank Lounge Access Spend Hike

[ranjitrophy]

Yes Bank has hiked the quarterly spend target for lounge access on YES Reserv from 10k to 35k. Received email today.
Changes effective July 1, 2024.

 

[Deleted member 27665]

Say No to Yes bank

 

[ranjitrophy]

Say No to Yes bank

Ah well, too late for that, at least for now. This is my first month with the card, bought 3x subscription, already spent 60k. Personally, this spend target might not be much of a challenge for me.

 

[abhiver]

Yes Bank is doing "Bhed Chaal". Usnke CC ka market itna bada hi nahi hai ki Lounge access misuse ho

 

[lightwaves]

Yes Bank has hiked the quarterly spend target for lounge access on YES Reserv from 10k to 35k. Received email today.
Changes effective July 1, 2024.

Axis is the first mover and Yes is the fast follower lol 🤣🤣

 

[Swastik]

HDFC was the first one to come up with ridiculous spend criteria for lounge access (1L on Millennia), ICICI bank followed suit with 35k as well

Now every bank thinks that it's such a great idea ,Axis took it a bit too far with putying it on Magnus as well

I reckon we'll see others such as IDFC ,Scapia etc to increase their spend criteria as well ,not that i want it

Also as far as Yes is concerned, did not expect this on Marquee ,for a card with 10k joining and 5k annual ,it's a expected to give out lounge access wothout conditions attached

 

[lightwaves]

I think other banks also will start increasing the minimum spends for Lounge Access. It’s hitting their bottom line and they will want to cut down the losses. Eventually people have to spend to earn the access. The free access days are gone I guess.

 

[CD.]

I think other banks also will start increasing the minimum spends for Lounge Access. It’s hitting their bottom line and they will want to cut down the losses. Eventually people have to spend to earn the access. The free access days are gone I guess.

if people dont spend money then there is no chance of making money via EMI and minimum dues

 

[Zacobite]

HDFC was the first one to come up with ridiculous spend criteria for lounge access (1L on Millennia), ICICI bank followed suit with 35k as well

Now every bank thinks that it's such a great idea ,Axis took it a bit too far with putying it on Magnus as well

I reckon we'll see others such as IDFC ,Scapia etc to increase their spend criteria as well ,not that i want it

Also as far as Yes is concerned, did not expect this on Marquee ,for a card with 10k joining and 5k annual ,it's a expected to give out lounge access wothout conditions attached

idfc chgd long back - lounges are in trouble atleast a 50 % drop in revenue.. minimum

 

[CD.]

idfc chgd long back - lounges are in trouble atleast a 50 % drop in revenue.. minimum

sell dramfolk stock

 

[sxchzy]

idfc chgd long back - lounges are in trouble atleast a 50 % drop in revenue.. minimum

lol
you are wrong
banks buy in bulk from lounge
banks end up with unused access at best

 

[sxchzy]

HDFC was the first one to come up with ridiculous spend criteria for lounge access (1L on Millennia), ICICI bank followed suit with 35k as well

Now every bank thinks that it's such a great idea ,Axis took it a bit too far with putying it on Magnus as well

I reckon we'll see others such as IDFC ,Scapia etc to increase their spend criteria as well ,not that i want it

Also as far as Yes is concerned, did not expect this on Marquee ,for a card with 10k joining and 5k annual ,it's a expected to give out lounge access wothout conditions attached

icici was the first for this
they had 5k spend requirement for icici sapphire
then came idfc
then hdfc changed things and suit followed

 

[sxchzy]

and this was bound to happen especially when credit card issued are at an all time high

 

[lightwaves]

sell dramfolk stock

Lol 😂🤣 Eventually they will do well

 

[Zacobite]

lol
you are wrong
banks buy in bulk from lounge
banks end up with unused access at best

yes.. thats why lounge devals have different dates may / june etc to exhaust what they have .. after that no bulk.. reduced buying by all banks... so drop in revenue..

 

[lightwaves]

yes.. thats why lounge devals have different dates may / june etc to exhaust what they have .. after that no bulk.. reduced buying by all banks... so drop in revenue..

Another way to look at it is, bargaining power of Lounge service providers is increasing, hence banks have to shell out more money, the effect is they are increasing the minimum spend criteria.

 

[lightwaves]

yes.. thats why lounge devals have different dates may / june etc to exhaust what they have .. after that no bulk.. reduced buying by all banks... so drop in revenue..

Another way to look at it is, bargaining power of Lounge service providers is increasing, hence banks have to shell out more money, the effect is they are increasing the minimum spend criteria.

 

[Zacobite]

Another way to look at it is, bargaining power of Lounge service providers is increasing, hence banks have to shell out more money, the effect is they are increasing the minimum spend criteria.

I doubt.. i think banks are bargaining and cutting spends.. as over last few yrs the number of ppl using lounges for domestic travel just boomed leading to huge costs not mirrored in their spending.. lounges won't go beyond a certain price as they have sunk capital of real estate etc.. banks are throttling to cut costs.. all across all partners.. airlines / hotels / reward rates / lounges etc... full monty

 

[CD.]

Targeting 20% revenues from non-lounge services in 5 years: DreamFolks CMD​

The company currently earns 99% of its revenue via lounges​

https://www.business-standard.com/companies/news/targeting-20-revenues-from-non-lounge-services-in-5-years-dreamfolks-cmd-123121800949_1.html

 

[lightwaves]

I doubt.. i think banks are bargaining and cutting spends.. as over last few yrs the number of ppl using lounges for domestic travel just boomed leading to huge costs not mirrored in their spending.. lounges won't go beyond a certain price as they have sunk capital of real estate etc.. banks are throttling to cut costs.. all across all partners.. airlines / hotels / reward rates / lounges etc... full monty

Ummm interesting take