All you need to know about rail tickets surge pricing

The timing for the experiment by railways could not been worse in view of the festival season rush

GN Bureau | September 9, 2016


#Rail Budget   #Suresh Prabhu   #Indian Railways   #Railways   #Surge Pricing  


Facing criticism on dynamic surge pricing for premium train tickets, the railway ministry has clarified that the dynamic pricing is being done for experimental basis and will be reviewed after sometime.

Earlier, on September 7, railways announced that ticket fares for Rajdhani, Duronto and Shatadbi trains will be increased by 10 and 50 per cent more under a dynamic surge pricing+ system to be introduced from September 9.

Ministry of information and broadcasting through its official Twitter handle of PIB shared a series of tweets on Thursday to clarify the sudden change in the pricing of Rajdhani, Shatabi and Duranto. Railways has said that the change will affect only 0.15 million passengers out of the 23 million passengers travelling daily.

 



Here are a few points raised by RailYatri.in, a data company that follows trends in railways.
 

 

  • Sleeper class ticket prices will get affected because of the introduction of surge pricing - while those of first AC and executive class have been exempted. Shouldn’t it have been the other way round? There are just few sleeper coaches on these premium trains, so revenue-wise not much is going to come out from sleeper class travelers.
  • The timing could not have been worse - especially as travelers are heading into a festival season. For many it is going to hit the pockets hard.
     
  • Expect big arguments happening at the railway reservation counters - we don't expect many train travelers to understand and have a rational view of sudden on-the-face price increase. The demand-supply being the deciding factor, pricing is going to be super volatile, with the next person paying more than the previous one. It may also increase pressure on booking clerks to book faster and take lesser breaks between booking hours.
     
  • It is typically seen that the first 10% of the tickets are booked by touts - especially in the peak rush season. Will this encourage them to book early and increase their demand?
     
  • Introducing dynamic fare prices on just these 3 types of trains is not going to move the revenue needle much for the Railways. After all there are only about 300 of these premium trains in all. So we can safely guess that this scheme will get introduced on other trains too. Perhaps, a precursor to dynamic pricing in many more trains!

Comments

 

Other News

70 words that define India, why Doklam stand-off won’t lead to a war, and more

As India celebrates 70 years of freedom, Governance Now looks back and picks 70 words – or phrases, buzzwords, slogans, events – that best define this ancient nation and young democracy. Here, you will find much to be proud of, much tinged with pangs of nostalgia. Then there are entries that

A dose of PPP in healthcare is what the doctor recommends

Dr Kenneth E Thorpe, a professor of health policy and management at Emory University in the US and also the executive director of Partnership to Fight Chronic Diseases (PFCD), says that the government alone cannot do everything. “They don’t have the resources and capacity. So we have to fin

EESL signs MoU with oil companies for energy saving appliances

Energy Efficiency Services Limited (EESL), a joint venture company of PSUs of ministry of power, signed an agreement with oil marketing companies (OMCs) of ministry of petroleum and natural gas for distribution of energy efficient appliances under the flagship Unnat Jeevan by Affordable LEDs and applianc

Jammu airport’s upgraded terminal building inaugurated

Union minister for civil aviation, P Ashok Gajapathi Raju inaugurated the upgraded passenger terminal building of Jammu airport.   Notably, Jammu airport belongs to the Indian Air Force, and airports authority of India (AAI) maintains a civil enclave for civil aircraft operat

Election Commission shows it has spine

The election commission has become increasingly assertive in the past few months, showing its mettle in times of electoral challenges.   Weeks after rooting from EVMs and just days after the poll panel declared votes cast by two rebel Congress legislators in the Rajya Sabha e

Is Amit Shah`s blueprint for 350-plus seats in 2019 Lok Sabha elections achievable?

Is Amit Shah`s blueprint for 350-plus seats in 2019 Lok Sabha elections achievable?



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter