Cash-strapped Railways introduces dynamic fares

Indian Railways has decided to introduce dynamic pricing system for premium train travel with special air conditioned trains catering to increased demand during the festive season of Christmas and New Year, in order to boost sagging revenues.

Under the dynamic pricing system, which aims at boosting revenues, fares will be determined by demand and the tariff will go up as demand increases.

The system will be introduced in premier AC special trains having only AC-2 and AC-3 classes with facilities, including catering, on a par with Rajdhani Express.

The Railways, which is facing annual revenue deficit of about Rs26,000 crore per year, has decided to start with this experiment to earn extra cash.

The first of the dynamically-priced trains will be launched on an experimental basis with a premium AC special train on the busy Delhi-Mumbai route between 24 December and 2 January.

The train will take four trips between 24 December and 2 January.

The advance reservation period for this train has been pegged lower at 15 days while the fare will be equal to or higher than the Rajdhani Tatkal fare to begin with.

Bookings for this special trains will be available only through IRCTC portal and not through normal railway reservation counters.

The IRCTC e-ticketing web site will indicate fares applicable for each day/transaction at the time of booking.

Salient features of the dynamic fare scheme

• Dynamic fare stands for the fare component which may be increased with the subsequent bookings.
• Advance reservation period (ARP) of this train will be a maximum of 15 days.
• Dynamic fare shall be charged for confirm as well as RAC passengers.
• Waitlist ticket booking is not allowed in this train.
• Only e-tickets will be permitted for booking.
• The passengers are required to carry the prescribed original photo identity card.
• I-ticket booking is not allowed in this train.
• Modification is not allowed.
• Tatkal/ladies/other quota tickets cannot be booked in this train.
• No concession will be applicable in this train.
• Upgradation option will not be applicable in this train.
• Only end-to-end, general quota booking will be allowed.
• Current booking will be allowed on reservation counters after charting only.
• No refund will be granted. However, full refund will be admissible if the train is fully cancelled.
• The menu and tariff of the catering services will be similar to other Rajdhani trains.
• Dynamic fare along with total fare will be displayed after filling reservation form. Users must ensure the fare and journey details before proceeding for payment.

If the Mumbai experiment succeeds, Railways plans to introduce similar trains on the Delhi-Kolkata route soon.