Flexi Fare system - Your Inputs Sought

Indian Railways currently only recovers 57% of the cost of travel. At the same time it is investing in infrastructure and upgrading various services and facilities.

With the new flexi fare system, only 0.65% of the 23.5M passengers who travel daily will be impacted and it is projected to help in reducing the annual loss by 1000 crores.

With this, 50% of the passenger tickets (2S, SL, 2A, 3A and CC) in trains Rajdhani, Shatabdi and Duranto will not be subsidised while the remaining 50% tickets will continue to receive the subsidy.

The idea is to not reduce the subsidy for travelers who cannot afford to pay more and charge only those who can afford to pay in case of delayed booking.

We are open to your inputs on other ways of modifying fares through which the loss of Railways can be reduced by 1000 crores while improving services and infrastructure.

We look forward to your inputs! more  

View all 382 comments Below 382 comments
Flexi or dynamic fares are good idea but railways are implementing it in a stupid fashion. It can never work with a simple formula like a fixed increase after every 10% berths are booked. Right now fares quickly reach a point when they are no longer competitive with airlines or luxury bus services. Railways thus end up losing revenue rather than gaining it. Dynamic fares use a lot of variables right from demand on a particular sector, season of travel, timings, alternatives available to a customer, etc. All these factors have to be creatively deployed to maximize revenue for railways at the same time the passenger should not feel cheated. For this, railways would need to deploy sophisticated ticketing software. They will also have to change their entire fare philosophy. Travelling 500km in a low demand sector in off-peak season should not be priced same as travelling 500km in high demand sector during peak season. The basic pricing cannot be based on simple kilometres travelled but on demand-supply and competitive situation. more  
Obviously you will try to fleece the 0.65% fare paying people so that you do not loose elections. If you increase the fares or cut the free quota to employees or corruption in your system you will loose the votes or the minister will get changed. After all the railways is the largest employer in the country more  
Instead of flexi fare, railways must and should ensure the no reservation seat goes vacant to prevent losses. It has been a common experience of mine & many of my friends that during journey we see many of the births remaining vacant during the entire journey for which we had to wait very anxiously, to get even a RAC seat confirmation. more  
I agree with the views of Mr Sandip Mitra in toto. more  
I,Manish Gupta, I am one of admirer of Indian Railways as well a critic also. I have a confusion, What happens when cancellation occurs from first 10% tickets can our prabhu bless us ? If yes then how railways will return the amount to the passengers who purchased ticket at counter after the first 10%? I pray to our Prabhuji do not ruin the little chance of come backof BJP in next election. Namo laye hai toofan se kasti nikal ke mere BJP ko prabhu rakho sambhal ke kyoki hindustani can be governed by hindustani Dil not by angregi mind. more  
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