Indian Railways introduces surge pricing, ticket fares to rise 10% with every 10% seats booked

| Wednesday, September 7, 2016 - 20:54
First Published |
Indian Railways, surge pricing, Suresh Prabhu, Rajdhani Express, flexi-fare, Shatabdi Express, Duronto, Railways price hike
New Delhi: Indian Railway on Wednesday introduced surge pricing on three express trains- Rajdhani, Shatabdi and Duronto Express.
As per reports, fares of tickets will increase by 10% with every 10% sale of tickets. Ticket prices for 3AC and 2AC will, however, multiply by 1.5 times after 50%. There will be no change in the existing fare for 1AC and EC class of travel. The hike in price will come into effect from September 9. 
Vacant berths left at the time of charting would be offered for current booking. Tickets under current booking shall be sold at the last price sold for that class and other supplementary charges like reservation fee, superfast charges, catering charges, service tax etc., as applicable shall be levied in full.
The last price for every class of tickets for the particular train should be printed in the reservation chart for the purpose of charging of difference of fare in the train or charging the passengers of the train without ticket etc.
Indian Railways is a state-owned enterprise which is owned by Indian Government and operated by the Ministry of Railways. Indian Railways is the world's largest railway networks which connects the entire country.
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Surge Price

Irrefutable Law of Economics Indian Express ( 08 Sept 2016 ) carries following news report : " Railways to introduce surge pricing for Rajdhani, Shatabdi, Duronto trains " " The Ministry of Railway on Wednesday said that it will introduce flexi fare pricing in its Rajdhani, Duronto and Shatabdi trains from September 9. The fares will increase by 10 per cent with every 10 per cent of berths sold. “The base fares will increase by 10 per cent with every 10 per cent of berths sold subject to a prescribed ceiling limit. There will be no change in the existing fare for 1AC and EC class of travel,” a railway ministry release said. While 10 per cent of the seats will be sold in the normal fare in the beginning, it will go on increasing by 10 per cent with every 10 per cent of berths sold with the ceiling limit at maximum 50 per cent depending upon the demand " Now even as some State Governments ( and possibly central Transport Ministry ) , are seriously considering forcing Uber / Ola taxi-share operators to give up their practice of Surge Pricing , Shri Suresh Prabhu ( Railway Minister ) must find lakhs of crores of rupees to modernize our ancient and dilapidated train services Over the decades , one after another Railway Minister ensured that the railway passengers did not have to pay for the actual / real cost of running these trains They took the easy way out by keeping Rail Fares much below the cost , by incurring losses , subsidized by tax payer money ! But Shri Prabhu says : " This cannot go on for ever ! People must pay the true cost of this service ! Aren't people paying varying prices for Petrol / Diesel for some years now ? At one time , these too were highly subsidized and if govt tried to raise these ( mostly thru annual budget ) , there used to be riots on the streets ! Now these get adjusted every fortnight and no one even notices ! Economic law of Demand and Supply must dictate the prices , from time to time " No doubt , Shri Prabhu ! But under this very Law , when existing operators start making tons of profit, dozens of competitors enter that field and increase the " Supply " to catch up with the huge " Demand " In turn , that increased competition forces the incumbents to drop their prices to match the new operators and the Consumers gain Precisely , what is happening for the past few weeks in the Mobile Telephony Services , with arrival of Reliance Jio ! But the question is : Will NDA government permit private sector companies to lay down rail tracks and compete with Indian Railways ? If so , that would be GREAT , because Indian Train passengers will have " Options " to choose from ! You must not say , " Heads I win , Tails You Lose " ! Incidentally , in order to increase " Supply " , here is what the Central Transport Ministry and the State Governments should do by : # Encouraging Kali-Pili taxi owners to form their own Mobile App based " Share Taxi " scheme to take on Uber / Ola , playing by their " rules " , by installing Digi-Met / Fare-Calc , as recommended in my blog, " Tablets in Taxies " { } # Enabling many more private sector Start Ups to launch, " Share-Bike " / " Share-Rickshaw " operations -------------------------------------------------------------------------------------------------------------------------------- 08 Sept 2016 / blogs

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