Passenger occupancy in premium trains which had the flexi-fare system in ticket booking reduced when compared to ticket booking without the flexi system, data obtained from railways stated. According to senior railway officials, passengers get dissuaded from booking train tickets under the dynamic pricing model. On the other hand, the earnings received by railways from the scheme have increased. Due to the passenger occupancy, while the earnings for the corresponding period between 2015-16 was 91.56 per cent, it has increased to 101.44 per cent for 2016-17. The fares increase 10 per cent with every 10 per cent of the seats sold, with a maximum hike of 1.5 times the normal fares in sleeper, air-conditioned (AC) chair car and two-tier AC classes and 1.4 times in three-tier AC in premium trains. Both Central and Western railway see close to 15 trains that run on flexi fare system policy. Since the implementation of the policy on September 9, 2016, in premium trains, the passenger occupancy in premium trains including Howrah Duronto, Nagpur Duronto and Shatabdi Express has reduced considerably. For example, while passenger occupancy in 12261 Pune- Howrah Duronto Express was 100.53 per cent between September 9, 2015- September 8,2016, the occupancy reduced to 96.49 per cent between September 9, 2016- September, 9 2017. While the first AC-class coach was less impacted due to flexi-fare system, passenger occupancy has been affected in second and third AC coaches. For example, the passenger booking in third AC coach in Lokmanya Tilak Terminus (LTT)-Ernakulam train fell down from 74 per cent before the implementation of flexi fare to 71 per cent. The passenger booking in first AC coach increase from 52 per cent before the flexi fare scheme implementation to 62 per cent after implementation. “When there is a maximum hike of 1.5 times the normal fares under the scheme, passengers get dissuaded from booking the seats. For example, if the flexi fare pricing increases the train ticket in an August Rajdhani Express to a great amount, passengers prefer to take an airline ticket to travel to Delhi. At lesser costs, they are able to travel in lesser time by the airline,” a senior railway official said. To solve this crisis, the railway ministry agreed to form a committee in December last year which will review the flexi fare scheme. Replying to questions in Rajya Sabha in February, Union Railway Minister Piyush Goyal had said that the Ministry of Railways is having a rethink on flexi-fares and bringing in a dynamic pricing system that will help increase occupancy and enhance revenues. He had further suggested that the ministry is intending to offer discounts on train tickets during off season period. “The ministry is thinking on two aspects. How to bring back train passengers who may want to switch to airlines when the ticket fares spike as compared to the base fare cost, and second, on how the railways will continue to make earnings by encouraging passenger occupancy in trains,” a senior railway official said.
