Indian Railways justifies flexi fare system, expects to generate Rs 500 crore revenue

The Indian Railways is expecting to generate a revenue of Rs 500 crore with its flexi fare system.

Listen to Story

Advertisement
Image for representation
Image for representation

In Short

  • Railways justifies flexi fare system.
  • Expects revenue to increase by Rs 500 crore.
  • Railways encouraged by public response.

The Indian Railways, which loses around Rs 33,000 crore on its passenger segment every year, expects to generate Rs 500 crore revenue by unveiling the flexi fare model.

Though, authorities say the new pricing method is on an experimental basis and will be reviewed later, Indian Railways is looking at every single penny that can make the organisation more viable.

According to flexi fare system, the base fares will increase by 10 per cent with every 10 per cent of berths sold subject to a prescribed ceiling limit as indicated in the table. Read here to know why the Railways justifies the move:

advertisement

POPULAR RESPONSE

We are encouraged by overwhelming response from the public.

Flexi fare system is not new, earlier suvidha trains and premium trains were charging flexi fares.

Flexi fare system has been extended to Rajdhani, Duranto and Shatabdi trains that are covering pan India destinations.

WE ARE STILL CHEAPER

We are still cheaper. We are expecting to compare with air transport. Railway debunks airline claims for cheaper than trains.

Our rates are compatible with airfare and AC buses. So it is not worth saying that after increase we are not compatible.

RISE IN TICKET SALES

On September 9 and 10, Mumbai Rajdhani occupancy remained at 118 to 119 per cent in Shatabdi, Rajdhani and Duranto

On September 9, 21,000 booking on new rates and booking highest rate 2700 80 lakhs more revenue

On September 10, 29,000 tickets new booking done. Booking highest rate 3000 84 lakhs more revenue earned.

TRANSPARENT, HASSLE FREE SERVICE

The allocation for passenger amenities increased. The Dynamic Fare System for Rajdhani Express will prevent touting.

Even before introducing dynamic fare system for Rajdhani, the Railway Ministry was working on a scheme to provide last minute vacant berths on discount.

Even before introducing Dynamic Fare System for Rajdhani, Railway Ministry was already working on loyalty programme for frequent rail travellers. Under this, concession will be given to Platinum Customers in availing Executive Lounge Facilities.

COMPETITION BETWEEN ROAD AND AIR

We have to increase share of passengers and freight traffic for rail and we have competition from road and air. The competitions are governed by market forces. We are therefore, testing market and taking market oriented measures.

Under the current dynamic system, common man has not been affected.

The revenue generated through dynamic fare scheme will be reinvested for improving passenger amenities.

Also read:

'Experimental' flexi fare for Rajdhani, Duronto, Shatabdi kicks in today