Encalm is targeting a ₹5,000 crore hospitality business by expanding beyond airport lounges, according to livemint.com. The company is adapting to recent changes in the airport lounge access market, where banks and operators have tightened eligibility and altered service arrangements since mid-2026.
In April 2026, HDFC Bank announced that Regalia Gold cardholders must spend at least ₹60,000 in the preceding quarter to qualify for three free domestic lounge visits in the next quarter. Meanwhile, DreamFolks Services, which facilitated free lounge access for credit card holders, suspended its domestic lounge services in September 2025 after major operators like Encalm and Adani-linked entities ended their partnerships with it, per livemint.com.
These shifts have forced Encalm to rethink its business model amid a tightening market for complimentary lounge access. The move to build a ₹5,000 crore hospitality business signals a strategic pivot to diversify revenue streams beyond airport lounges, which have seen reduced free access due to stricter bank and operator policies. This approach aligns with broader industry trends where airport operators and banks recalibrate their offerings to manage costs and customer benefits.
Encalm's plan to scale its hospitality business beyond lounges comes as the airport lounge access landscape undergoes structural changes, including the suspension of DreamFolks' domestic services since September 2025 and new spending thresholds set by banks from July 2026, according to livemint.com.