FLEXI FARE SCHEME

Nov. 28, 2018

In a huge relief for passengers, the Railways has Rationalised Flexi Fare Scheme under which it has scrapped flexi-fare in 15 premium trains, while the scheme will no longer be applicable in 32 trains during lean periods.

About:

Background: Flexi Fare Scheme was launched with effect from 9th September, 2016.
Working:
- The scheme was introduced for premier trains — 44 Rajdhani, 52 Duronto and 46 Shatabdi Express trains.
- Under the dynamic pricing system, the fares increase 10% with every 10% of the seats sold, subject to prescribed limit. There was no change in the existing fare for first AC and economy class.
Recent Review:
- The scheme generated high revenue, however initially there was a drop of passengers which picked up later on.
- In this background, Railways has decided to remove flexi fares in 15 premium trains with less than 50% occupancy in the previous year, while the scheme will be discontinued in 32 other trains during lean periods when occupancy dips to 50-75%.
- The Rationalisation of scheme has been done based on the recommendation of the Review committee and Comptroller and Auditor General’s report.
- The reduction of Flexi Fares will benefit both the passengers who can now avail tickets at cheaper rates, as well the Railways that will see a surge in demand and occupancy.”