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Fri Jul 28, 2017 18:35:43 IST

Blog Entry# 2064299  
Posted: Nov 18 2016 (18:08)

3 Responses
Last Response: Nov 19 2016 (08:21)
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Nov 18 2016 (16:21)   Luxury Train tickets’ price may fall in off-season

Jayashree   37045 news posts
Entry# 2064299   News Entry# 285945         Tags   Past Edits
In recent months, Indian Railways witnessed a steep decline in passenger traffic as people travelling long distances are opting for airlines while the ones who are going for smaller distances chose roadways. To stop this trend, the Indian Railways is setting up an mechanism to sell tickets for luxury trains like Shatabdi, Rajdhani and Duronto, at a price lower than the base price, so that no berth move unreserved.
Railway minister Suresh Prabhu has instructed officials of the traffic department to work on a mechanism to make sure that no berths go empty on these trains and has asked his officials to do a price sensitivity analyses for all the premium passenger trains.
can have a mechanism where we reduce the fares before a day or two so that all unreserved seats could be filled. We are yet to figure out the contours of this proposal,” a top railway official told ET.
Railways recently introduced surge pricing where tickets prices increase according to demand but it had a cap, which is 1.5 times of the base fare. Due to increased fares, the difference between the rail tickets and air tickets on certain routes has come down as low as Rs 500.
"It's a possibility. Why only increase the fare. You can decrease it as well when there's no demand. Fixed cost will be incurred on that train anyway even when the berths are going empty,” Prabhu told ET.
The national transporter is apprehensive that it could lose more passengers to airlines in the wake of the regional connectivity scheme of the aviation ministry under which air tickets for an hour-long journey would be sold for Rs 2,500.
"It's a theoretical idea if you increase fares, railways would do better financially. We are already losing passengers. We have to go by the reality and after trying the surge pricing, we have analysed that this market is cost sensitive and we have to remain to our core strength that is being economical,” an official told ET.

Nov 18 2016 (18:08)
For Better Managed Indian Railways~   1933 blog posts
Re# 2064299-1            Tags   Past Edits
As expected, the intervention/directives to keep the fares economical has started coming in, some changes (lowering) in the dynamic fare schemes to avoid the empty running of trains is expected soon.

Nov 18 2016 (18:16)
Montez~   2758 blog posts   1582 correct pred (61% accurate)
Re# 2064299-2            Tags   Past Edits
Running Suvidha trains was still acceptable with:
1. New and comfortable rakes
2. Good average speeds
3. Good priority run
But, Flexi fare for Rajdhani, Shatabdi and Duronto trains was one of big mistakes by

Nov 19 2016 (08:21)
For Better Managed Indian Railways~   1933 blog posts
Re# 2064299-3            Tags   Past Edits
(1) Very high (Suvidha) fare is feasible on selected routes esp. one involving metros, and on peak/festive season.
(2) A small fraction of people have the deep pockets to pay such a high fare subjected to condition that Suvidha trains run on priority like 'raj and at convenient timing.
(3) IR efforts have backfired as it make a cardinal mistake of attempting to collect very high fare from a large number of paxs, on all the routes and almost through out the year.
After the demonetisation of 500 & 1000 Re notes, if black money is successfully weeded out of the economy, the number of persons willing to pay any amount for travel shall reduce drastically. Black money was helping these schemes and people would not like to splurge their white money after paying 30% Income tax. It would be better for IR to make efforts to reduce their input costs by rationalising its working and policies through innovative steps.

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