Rail flexi fares may be given a wide berth

National carrier now plans a ‘user-friendly’ makeover for dynamic pricing

The ministry of railways is planning to give a ‘user-friendly’ makeover to the dynamic pricing system, which the national carrier had launched in September last year on 142 premium trains.

The pricing system, based on the ones used by cab aggregators and airlines, may now be shelved following a public outcry and a low-occupancy level after airlines became a cheaper option for passengers.

According to sources, the new pricing system for premium trains like the Rajdhani, Shatabdi and Duronto is likely to be in place in 10 days. This comes at a time when the national carrier’s revenue touched ~260.31 crore from the introduction of the flexi fare system in these trains during the period September 9, 2016, to February 28, 2016. This revenue would have been otherwise a mere ~21 crore, considering the number of passengers that the railways has carried.

According to the new plan, the Railways may increase the percentage of reserved berths at normal fares in these trains to about 50 per cent from the current 10 per cent, after which surge pricing may come into play. “We are planning to make the flexi fare system more userfriendly. The new model of pricing for premium trains will be ready in 10 days,” said Mohammed Jamshed, member (traffic), Railway Board.

According to railway estimates, only about 0.35 per cent of the passengers travel in these premium trains. The decision to review fares was taken looking at the low occupancy rates in the Rajdhani (95 per cent), Shatabdi (75-77 per cent), Duronto (about 82 per cent) and Suvidha trains (about 70 per cent) from April to February 2016-17. This is seen as a move to arrest the declining trend in the number of passengers in the past three financial years before 2016-17.

However, in 2016-17, the railways posted an increase in passenger traffic by 1 per cent till February 28, which will bring an additional revenue of ~2,000 crore. This will be the second time that the railways ministry will review the flexi fare system. An interim review was done on December 12, giving a 10 per cent rebate in basic fares on vacant berths after preparation of the first chart in the Rajdhani, Shatabdi and Duronto trains on an experimental basis for six months.