Indian Railways Kill Dynamic Pricing – Train Tickets Will Be Now Cheaper!

Finally, good sense prevailed over Indian Railways, and they have decided to kill the controversial dynamic pricing or flexi-fare model.

Which trains would be benefited with this? Keep reading to find out more!

RIP Dynamic Pricing!

Dynamic pricing was introduced in 2016, as a means to increase profits of Indian Railways. Implemented on around 140 premium trains: 44 Rajdhanis, 46 Shatabdis and 52 Duronto express, Dynamic pricing increased train ticket price, based on the demand.

Once 10% of the seats available on a train was filled, the price was increased by 10%, and so on.

Facing backlash, and protests, Indian Railways has now decided to scrap the concept of dynamic trains across 40 odd trains in India.

Which Trains Won’t Have Dynamic Pricing?

The premium trains which have a 50% utilization rate (trains which were able to sell only 50% of the tickets) won’t have dynamic pricing from now on.

This decision has been based on the performance of Chennai-Mysuru Shatabdi Express – When the officials removed dynamic pricing on this train, normal bookings increased significantly.

Extra Discount On Tickets!

Not only dynamic pricing has been removed from 40 trains which have less occupancy, but a new discount model has also been introduced.

Now, around 102 trains will have up to 50% discount, up to 4 days before the departure of the train. These last minute discounts have been proposed to make train journeys more affordable and to ensure that trains don’t run empty.

The actual list of trains where dynamic pricing have been removed and 50% additional discounts introduced haven’t been disclosed yet. As per reports, trains which have less than 60% occupancy will be given the discount first.

Why Was Dynamic Pricing Removed?

RIght from the inception, the concept of dynamic pricing was criticised and condemned.

10% increase in train fares after every 10% of the tickets were booked meant that by the time last 10% of the tickets were booked, the price of ticket became way more than airfares.

Although there was a cap of 140% increase in AC 3 tickets, and 150% in tickets of other classes, the concept of dynamic fares remained unpopular.

Few months after its implementation, we reported a loss of Rs 232 crore for Railways, in a single month of October.

At that time, a Railways Official said, “The flexi fare scheme has backfired. Occupancy in trains has gone down substantially as passengers are getting flight tickets at cheaper rates. The railway ministry will review the scheme only after three months,”

We had speculated an AI-based dynamic fare concept, which Railways was mulling in the month of February. More details are awaited.

In case you are looking for more discounts on train tickets, do check out this post.

We will keep you updated, as we receive more updates.