Question : Flexible Fare Structure

(a) whether the Railways is considering various options for generating revenue from passenger travel on high volume routes and if so, the details thereof;

(b) whether there is a heavy rush in the passenger trains across the country;
(c) if so, the reasons for decline in revenue generated through passenger travel;
(d) whether the Railways is contemplating to start flexible fare structure for all the classes in all trains on the lines of air fare; and
(e) if so, the details of the scheme formulated in this regard?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS
(SHRI MANOJ SINHA)

(a) In order to increase passenger earnings and recover the operating cost for running of trains, over and above the regular time tabled trains, the concept of Suvidha/Premium Special trains with variable/dynamic fares has already been introduced.

(b) On Indian Railways, the demand pattern is not uniform throughout the year and it varies during the peak and lean seasons.
The demand for travel surges especially during summer holidays, festivals etc.

(c) The passenger earnings during the period from April to October 2015 is `25,975.28 crores which is higher than the earning of `24,264.10 crores during the corresponding period of 2014-15. There is, thus, no decline in revenue generated in passenger traffic.
(d) & (e) At present, there is no proposal to start flexible fare structure for all classes in all trains.
However, there is Premium tatkal quota in identified trains in which system of dynamic fare is applicable. Also, Indian Railways is running Suvidha/Premium Special trains with variable/dynamic fares where fares increase with the number of berths being sold.
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