Question : Dynamic Pricing

(a) the details of the monthly increase in terms of percentage in revenue of Railways so far after implementing the dynamic pricing based on demand of tickets similar to the air ticket bookings;

(b) the details of provision under which the Railways has been included in commercial sector organisation while it has always been considered as a social service of the Union Government; and

(c) the reasons therefor?




Answer given by the minister

MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY

(SHRI PIYUSH GOYAL)

(a) to (c): A Statement is laid on the Table of the House.




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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF UNSTARRED QUESTION NO. 4096 BY SHRI VIJAY KUMAR TO BE ANSWERED IN LOK SABHA ON 18.03.2020 REGARDING DYNAMIC PRICING

(a): The dynamic/variable fare schemes available in regular train services over Indian Railways are as under:
1. Flexi Fare scheme in certain Rajdhani, Shatabdi and Duronto trains.
2. Premium Tatkal Quota on dynamic pricing.
Month wise percentage increase in the earnings due to introduction of dynamic/variable fare is not maintained separately. However, the total additional earning generated due to the introduction of dynamic/variable fare since the date of implementation up to March 2019 is ?4140 crore.

(b) and (c): Passenger fare in most of the classes is very low. Passenger segment over IR has suffered continuous losses however no substantial increase in passenger fare has taken place for last so many years. There is a continuous requirement of augmentation of trains, extension of trains, introduction of new trains, modernisation of stations, improvement of standard of coaches with more comfort, provide modernised facilities, ensure cleanliness etc. Apart from this as a social welfare measure Railways are providing concession in the passenger fare to more than 50 categories of passengers i.e Four categories of Divyang passengers, Patients, War widows, Senior Citizens, Students, sports persons etc. Revenue foregone due to concession being given to different categories of passengers for 2018-19 is approximately ?1995 crore. In order to recover the losses and provide passengers better travelling experience, dynamic/variable fare scheme has been introduced in limited number of popular trains. Also, alternative accommodations for general passengers on normal fare are already available.
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