Lok Sabha Question No. 154 (STARRED), answered on 2015-12-09
Subject: Dynamic Rail Fare
Ministry: RAILWAYS
Asked by: ARVIND GANPAT SAWANT, KRUPAL BALAJI TUMANE

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA STARRED QUESTION NO. 154 TO BE ANSWERED ON 09.12.2015

## DYNAMIC RAIL FARE

† *154.   SHRI ARVIND SAWANT: SHRI KRUPAL BALAJI TUMANE:

Will the Minister of RAILWAYS be pleased to state:

- (a) the details of the concept of dynamic rail fare introduced in the Railways;
- (b) whether the said concept is being extended to all types of trains and if so, the details thereof;
- (c) the percentage difference in train fare under the said concept as compared to tickets booked in the ordinary way as well as under Tatkal scheme;
- (d) the additional amount of revenue generated before 2014 and also in 2014-15 through introduction of dynamic train fares; and
- (e) the  safeguards  put  in  place  in  the  said  concept  to  ensure  that genuine train traveller is benefited?

## ANSWER

## MINISTER OF RAILWAYS

) SHRI SURESH PRABHAKAR PRABHU)

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

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF STARRED QUESTION  NO.  154  BY  SHRI  ARVIND  SAWANT  AND  SHRI  KRUPAL BALAJI  TUMANE  TO  BE  ANSWERED  IN  LOK  SABHA  ON  09.12.2015 REGARDING DYNAMIC RAIL FARE

(a) The following type of services are available over Indian Railways on dynamic pricing/variable fare structure.

(i).  Premium  special  trains:  The  concept  of  premium  train  services  on dynamic fare, over and above the regular train services, was introduced w.e.f 24.12.2013. The fare of Premium special trains on dynamic pricing increases depending upon the demand and availability of accommodation. The base fare of these trains is the normal adult fare applicable  for  the  trains  plus  the  tatkal  charges  and  the  fare  can increase  based  on  demand  intensity  subject  to  a  prescribed  maximum limit. The dynamic fare of the premium trains increases proportionate to the  increase  in  Actual  Demand  Intensity  as  compared  to  the  Normal Demand Intensity.

(ii).  Suvidha special trains: With effect from  01.07.2015, Suvidha trains have been introduced in place of  Premium trains for meeting demand peaks as may arise from time to time during summer, winter, festivals and  on  other  occasions.  Minimum  fare  of  Suvidha  trains  is  equal  to Tatkal fare applicable for the class of accommodation for initial 20% of the berths and thereafter the fare increases for subsequent slabs of 20% of  seats/berths  booked  subject  to  maximum  three  times  of  the  Tatkal fare.

(iii)  Premium Tatkal quota: With effect from 01.10.2014, in some of the selected trains identified by Zonal Railways which are most in demand, 50%  of  the  existing  accommodation  under  Tatkal  Quota  has  been earmarked  as  Premium  Tatkal  Quota  and  is  being  booked  on  dynamic pricing. This is a distance-slab based fare scheme where the fare

increases  by  20%  after  each  slab  of  10%  berths  are  sold  subject  to maximum three times of tatkal fare.

- (b)    At  present,  there  is  no proposal to extend the concept of dynamic fare/variable fare system on all types of trains.
- (c)    The  basic fares for normal Mail/Express trains and Tatkal charges, for  e.g.,  in  a  representation  case  for  1000  Kms  for  2 nd   AC,  3 rd   AC  and Sleeper classes are as under:-

| Class         |   Fare for Normal Ticket (Amount in `) |   Fare for Ticket under Tatkal scheme (Amount in `) | % difference of fare (Amount in `)   |
|---------------|----------------------------------------|-----------------------------------------------------|--------------------------------------|
| 2 nd AC       |                                   1683 |                                                2083 | 23.77%                               |
| 3 rd AC       |                                   1156 |                                                1503 | 30.01%                               |
| Sleeper class |                                    439 |                                                 571 | 30.07%                               |

The fares for Premium trains/Premium tatkal quotas/Suvidha trains operating on dynamic fare/variable fare structure vary from time to time based on booking pattern. However, minimum fare under such schemes are base fare plus Tatkal charges and maximum fare is three times of base fare plus Tatkal charges.

In all the above cases, other Supplementary charges like reservation charge, superfast charge, service tax etc., as applicable are levied separately.

- (d)  Additional earnings over and above tatkal earnings due to running of premium special trains, Suvidha special trains and premium tatkal quota in identified trains on dynamic pricing/variable pricing are as under:-

| Period            | Additional earnings over tatkal fare   |
|-------------------|----------------------------------------|
| Before 01.04.2014 | 1.48 crores                            |
| 2014-15           | 121.35 crores                          |

(e) The aim and objective of introducing trains with dynamic fares/variable  fares  is  to  provide  rail-users  the  facility  of  travelling  at short notice by paying higher fares during specific periods when there is heavy rush.

The travellers have the option of travelling in regular Mail/Express and passenger  trains  by  paying  the  normal  fare.  Indian  Railways  caters  to various  segments  of  the  travelling  public  and,  accordingly,  operates different types of time tabled services like suburban services, passenger services and Mail/Express services, which includes Rajdhani, Shatabdi, Duronto, Yuva and Garib Rath services etc.

Premium trains, Suvidha trains are run as additional services over and  above  the  time-tabled  trains  during  peak  seasons.    They  do  not displace  the  regular  services  but  complement  them  by  providing  a facility for travel at short notice by paying higher fares. Also maximum fare for tickets under dynamic/variable fare scheme has been applied to ensure the fare does not go beyond a limit.

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