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

“Key milestones achieved in Assam”

In an interview with Governance Now, Anil Kumar Jha, special DGP, CID, Assam, who is also nodal officer for the CCTNS project, speaks of what the system in its present form has helped his state achieve. What is the current status of CCTNS in Assam and its outcome?

Crime tracking project: Bugged from the beginning

A stand-off between the ministry of home affairs (MHA) and software development firm Wipro seems to have long held up the Rs 2,000 crore crime and criminal tracking network and systems (CCTNS) project, conceptualised ten years ago. The project aims to digitise and connect all police stations in the country

Activists question displacement and dispossession of marginalised communities

Questioning the development model pushed ahead for profit oriented growth, social and political activists, academicians, financial analysts and civil society organisations are holding a three day confluence of Peoples’ Convention on Infrastructure Financing in Mumbai.     &nb

The enemy within

About one-fourth of India’s elderly face abuse at the hands of those they trust the most – the son (52%)  followed  by the daughter in law (34%),spouse/partner (14%), daughter(6%)  grandchild (6%), son in law(3%), parent(1%) and care giver(1%), reveals a report by the HelpAge Ind

Who has been investing in India through Mauritius?

The official statistics provided by the department of industrial policy and promotion (DIPP) under the ministry of commerce and industry shows that between January 2000 and December 2017, India received $368 billion of foreign direct investment (FDI). It also says that Mauritius was the source of $125 bill

The neighbour and the valley

The declaration communicated through the director general of military operations (DGMO) of Pakistan and India on May 29, 2018, to implement the ceasefire agreement of 2003 between the two countries in “letter and  spirit” has opened up an opportunity to restore peace in the disturbed Kashm

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter