Sunday, 19 March 2017

Surge Pricing on Premium High Speed Train Services and Flexi Fare System

Surge Pricing on Premium High Speed Train Services and Flexi Fare System
In written reply, the Minister of State for Railways Shri Rajen Gohain said that there is no such fare structure of 'Surge Pricing System' in the Parliament recently.

No such fare structure has been introduced by the name of surge pricing. However, w.e.f. 09.09.2016 Flexi Fare system has been introduced in Rajdhani, Duronto and Shatabdi trains.

Under this system, the base fare increases by 10% with every 10% of berths sold subject to maximum ceiling limit of 1.5 times in classes Second AC, Sleeper, Second Sitting (Reserved), AC Chair Car and 1.4 times in 3rd AC class. No change has been made in the fares for Ist AC and Executive class of travel.

There is mixed response from different quarters on the introduction of Flexi fare system. Based on the feedback received, review have been made on Flexi fare system and the provision of Tatkal quota has been reduced from maximum 30% to 10% of the total berths availability. Further 10% discount has been offered in all trains including Rajdhani, Duronto and Shatabdi trains on the vacant berths after preparation of first chart.

In view of variable fare structure, the fare may or may not be higher than Air fares. The flexi fare system has been introduced only in Rajdhani/Shatabdi/Duronto trains. Other Mail/Express and Superfast services are available on the normal fare structures. It cannot therefore be said that this mechanism will divert traffic from Railways to Airways.

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