Question : Surge Pricing for Premium Services

(a) whether the Railways has introduced surge pricing on some of its premium high speed train services;

(b) if so, the details thereof and the experience gained since introduction of this pricing mechanism;

(c) whether this price mechanism would divert traffic from Railways to Airways; and

(d) if so, the details thereof?

Answer given by the minister

MINISTER OF RAILWAYS, COMMUNICATIONS AND ELECTRONICS & INFORMATION TECHNOLOGY


(SHRI ASHWINI VAISHNAW)

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

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF UNSTARRED QUESTION NO. 1366 BY SHRI DHARMENDRA KASHYAP TO BE ANSWERED IN LOK SABHA ON 09.02.2022 REGARDING SURGE PRICING FOR PREMIUM SERVICES

(a) & (b): No such fare structure has been introduced by the name of surge pricing. However, w.e.f. 09.09.2016, flexi Fare system has been introduced in Rajdhani, Duronto and Shatabdi trains. Under this system, the base fare increases by 10% with every 10% of berths sold subject to fixed maximum ceiling limit in classes Second AC, Sleeper, Second Sitting (Reserved), AC Chair Car and 3rd AC class. No change has been made in the fares for Ist AC and Executive class of travel. During Pre Covid both number of passengers as well as earnings by these trains have increased in comparison to Non-Flexi fare period.
(c) & (d): Railways and Airlines are different modes of transport, which are not comparable in the terms of volume, connectivity as well as convenience.
There is no fixed maximum limit of fare in Airlines whereas Railways have fixed maximum fare throughout the year. Airline fare varies significantly depending on time of operation, stoppages, travel duration, Origin – Destination pair, carrier etc. Railways’ fare may or may not be higher than the air fare depending upon the class of travel as well as factors like peak/ lean periods. It is the choice of the passengers to opt either for Railway or Airlines as per their convenience and requirement.
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