This year in September, Indian railway introduce flexi-fare system where base fare will increase by 10% with every 10% of seats sold subject to a prescribed ceiling limit. This formula is only applicable on premier trains like Shatabadi, Rajdhani and Duronto trains.
Now, Indian Railway tweaked a little in the flexi-fare structure. The change offers 10% rebate on any vacant seat left after chart preparation. The discount would be applicable on the surged fare base and not the original base fare.
These fares have been reviewed for a period of six months on experimental basis.
Flexi-Fare System in Detail:
● When flex-fare was introduced, it was stated that other supplementary charges like reservation, superfast, catering and service tax will be levied separately.
● The railways further said that vacant berths left at the time of charting would be offered for current booking.
● However, there was no change in the existing fare for 1AC and Executive Class of travel in premier trains.
● It is also decided by the Railway board that the information should also be displayed to the passenger during the booking in case the fare of lower class becomes higher than the higher class to exercise option to travel by the higher class.
● No Premium will be charged for the Tatkal Tickets in these trains
● Whereas, Tatkla will be available at 150% of base fare and no additional charges as ‘Tatkal charges’ will be levied.
● Similarly, Tatkal Quota Berths limits will be set aside
Amendments in the System
Railway board even rolled back flexi-fares system between Jaipur and Ajmer of New Delhi- Ajmer Shatabadi Express and between Mysore and Bengaluru on Mysore - Chennai Shatabadi Express. The fares of these Shatabadi train on these routes is reduced up to Rs. 140. Fares has been reduced by Rs. 75 on Kishangard and Jaipur, by Rs. 70 between Mysore and Bengaluru city and by Rs. 55 between jaipur and Ajmer. There are total 54 Duronto train.
Effects
Recently, Indian railway has claimed that the response of the flexi-fare system is quite good. According to railway Board, this is mainly because railway fares are still lower than the airfare. Regardless to that, as per this system passengers will be expensing 10-50% more. "Our flexi-fare system has got a good response and passengers have responded well to the scheme as there is about 30 per cent booking in the last two days," Railway board member (traffic) Mohd Jamshed said in an article to TOI. Railway is aiming to earn more Rs. 500 crore during this fiscal year. Jamshed even said the railways has earned Rs 84 lakh and Rs 81 lakh more on September 9 and 10 respectively from the flex-fare system. Responding to the charge that train fare has now become costlier than airfare, Jamshed told reporters despite flexi-fare system, train travel cost is still lower than airfare 7 road travel too.
The passenger revenue target for the current fiscal is Rs 51,000 crore as against Rs 45,000 crore in the last fiscal, an increase of Rs 6000 crore for 2016-17.
Now, Indian Railway tweaked a little in the flexi-fare structure. The change offers 10% rebate on any vacant seat left after chart preparation. The discount would be applicable on the surged fare base and not the original base fare.
These fares have been reviewed for a period of six months on experimental basis.
Flexi-Fare System in Detail:
● When flex-fare was introduced, it was stated that other supplementary charges like reservation, superfast, catering and service tax will be levied separately.
● The railways further said that vacant berths left at the time of charting would be offered for current booking.
● However, there was no change in the existing fare for 1AC and Executive Class of travel in premier trains.
● It is also decided by the Railway board that the information should also be displayed to the passenger during the booking in case the fare of lower class becomes higher than the higher class to exercise option to travel by the higher class.
● No Premium will be charged for the Tatkal Tickets in these trains
● Whereas, Tatkla will be available at 150% of base fare and no additional charges as ‘Tatkal charges’ will be levied.
● Similarly, Tatkal Quota Berths limits will be set aside
Amendments in the System
Railway board even rolled back flexi-fares system between Jaipur and Ajmer of New Delhi- Ajmer Shatabadi Express and between Mysore and Bengaluru on Mysore - Chennai Shatabadi Express. The fares of these Shatabadi train on these routes is reduced up to Rs. 140. Fares has been reduced by Rs. 75 on Kishangard and Jaipur, by Rs. 70 between Mysore and Bengaluru city and by Rs. 55 between jaipur and Ajmer. There are total 54 Duronto train.
Effects
Recently, Indian railway has claimed that the response of the flexi-fare system is quite good. According to railway Board, this is mainly because railway fares are still lower than the airfare. Regardless to that, as per this system passengers will be expensing 10-50% more. "Our flexi-fare system has got a good response and passengers have responded well to the scheme as there is about 30 per cent booking in the last two days," Railway board member (traffic) Mohd Jamshed said in an article to TOI. Railway is aiming to earn more Rs. 500 crore during this fiscal year. Jamshed even said the railways has earned Rs 84 lakh and Rs 81 lakh more on September 9 and 10 respectively from the flex-fare system. Responding to the charge that train fare has now become costlier than airfare, Jamshed told reporters despite flexi-fare system, train travel cost is still lower than airfare 7 road travel too.
The passenger revenue target for the current fiscal is Rs 51,000 crore as against Rs 45,000 crore in the last fiscal, an increase of Rs 6000 crore for 2016-17.