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From tomorrow, surge pricing on key trains (Relevant for GS Prelims, GS Mains Paper III)

Hike in Railway fares
The Railways introduced the surge pricing system on the Rajdhani, Duronto and Shatabdi trains with effect from September 9.

Under the new ‘flexi fare system’
Usually followed by airlines, the base fare of tickets will increase with the rising demand. While the first 10 per cent of the seats will be sold at the normal fare, the base fares will increase 10 per cent with every 10 per cent of berths sold. Fares can go up to a maximum of 1.5 times the original base fare. Once half the tickets are sold, the rest will be sold at 1.5 times higher base fares for 2S, sleeper and 2AC coaches, and 1.4 times higher for 3AC coaches.Flexi fare system’ is not applicable to 1AC and executive class coaches.

Implication
The revised pricing system may lead to passengers moving away to airlines from the Railways network. However, Railways will be able to generate high revenues from passengers.
 



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