MUMBAI: Premium trains that run with dynamic fare pricing based on demand have strange "dynamics" that may make travel by 3-tier airconditioned (3A) coaches costlier compared to 2-tier AC (2A) ones and in some cases, even to air fares.
The dynamic pricing system operates on the lines of the airline booking model. For premium trains, the initial fare is equivalent to the tatkal fare. However, it keeps increasing as seats get booked and the departure date comes forward. However, the fare cannot increase more than 100% of the tatkal fare.
When TOI checked fares for dynamic pricing on Saturday, it found that fares of 3-tier AC were higher compared to those for 2-tier AC. For example, the CST-Patna premium train, scheduled to depart on May 12, had availability of 68 berths in 3AC and 42 in 2AC. The fare quoted at 5.15pm was Rs 6,369 for 3AC and Rs 6,004 for 2AC. Booking for the Mumbai Central-New Delhi premium train for May 6 was along similar lines. The 3AC fare was Rs 3,634 with 336 seats available, and the 2AC fare was Rs 3,299 with 79 berths available.
Subash Gupta of Mumbai Rail Pravasi Sangh said, "The bookings for premium trains are done through e-ticketing portal only and not through the Passenger Reservation System (PRS). The system was introduced to neutralize touts, who anyway would charge a premium to do bookings."
Criticizing the way dynamic pricing works, Gupta said, "A passenger who has a lower budget would try to book a ticket in 3AC as it is comparatively cheaper than 2AC. The IRCTC portal should have a mechanism to offer him a berth in 2AC if the fare is cheaper than in 3AC."
Some commuters also claimed the rates are close to air fares and in some cases higher than air fares if air tickets are booked well in advance. Shikha Menon, who planned to travel to Varanasi, found the fare was Rs 6,300 for 3AC. "My husband checked the air fares and was able to block an Air India ticket for Rs 6,900. The train journey, for me, was definitely costlier, when I compared the time to be saved and comfort."
Railways have taken a liking to premium trains as they are money spinners. A railway official said, "The average earning for a Mumbai-Delhi Rajdhani is Rs 20 lakh, but through premium trains we can expect to earn 80 to 90% more."
He also said it is a win-win situation as berths can be available till the day of departure because seats are vacant on account of higher fares. After dynamic pricing, railways have now planned to convert holiday specials into tatkal specials to cash in on the peak-season rush.
The dynamic pricing system operates on the lines of the airline booking model. For premium trains, the initial fare is equivalent to the tatkal fare. However, it keeps increasing as seats get booked and the departure date comes forward. However, the fare cannot increase more than 100% of the tatkal fare.
When TOI checked fares for dynamic pricing on Saturday, it found that fares of 3-tier AC were higher compared to those for 2-tier AC. For example, the CST-Patna premium train, scheduled to depart on May 12, had availability of 68 berths in 3AC and 42 in 2AC. The fare quoted at 5.15pm was Rs 6,369 for 3AC and Rs 6,004 for 2AC. Booking for the Mumbai Central-New Delhi premium train for May 6 was along similar lines. The 3AC fare was Rs 3,634 with 336 seats available, and the 2AC fare was Rs 3,299 with 79 berths available.
Subash Gupta of Mumbai Rail Pravasi Sangh said, "The bookings for premium trains are done through e-ticketing portal only and not through the Passenger Reservation System (PRS). The system was introduced to neutralize touts, who anyway would charge a premium to do bookings."
Criticizing the way dynamic pricing works, Gupta said, "A passenger who has a lower budget would try to book a ticket in 3AC as it is comparatively cheaper than 2AC. The IRCTC portal should have a mechanism to offer him a berth in 2AC if the fare is cheaper than in 3AC."
Some commuters also claimed the rates are close to air fares and in some cases higher than air fares if air tickets are booked well in advance. Shikha Menon, who planned to travel to Varanasi, found the fare was Rs 6,300 for 3AC. "My husband checked the air fares and was able to block an Air India ticket for Rs 6,900. The train journey, for me, was definitely costlier, when I compared the time to be saved and comfort."
Railways have taken a liking to premium trains as they are money spinners. A railway official said, "The average earning for a Mumbai-Delhi Rajdhani is Rs 20 lakh, but through premium trains we can expect to earn 80 to 90% more."
He also said it is a win-win situation as berths can be available till the day of departure because seats are vacant on account of higher fares. After dynamic pricing, railways have now planned to convert holiday specials into tatkal specials to cash in on the peak-season rush.
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