Flexi fares cost railways premium passengers: CAG
Air Travel Cheaper Than Train In A Number Of Sectors
New Delhi:21.07.2018
The flexi fare scheme introduced by the Railways has resulted in lower occupancy though the government has benefited by more than ₹550 crore, the national auditor has said as it cautioned that the scheme may force passengers to look at the option of air travel.
The comptroller and auditor general (CAG) study on flexi fares in Rajdhani, Shatabdi and Duronto trains has found that “post implementation of this scheme, occupancy decreased in all classes, except sleeper class in Duronto trains”. “The occupancy increased only in a few premier trains. Even in AC 3 class, which was one of the most profitable classes, the occupancy dropped significantly after introduction of flexi fare and the vacant berths increased from 0.6% in pre-flexi period to 4.5% in post-flexi period,” CAG said. “Though, Railways earned ₹552 crore from passenger earnings from premier trains post flexi fare system during September 2016 to July 2017, there was de-growth of 2.7% in number of passengers, despite availability of higher number of berths/seats,” the national auditor observed.
The CAG, which tabled a report in Parliament on Friday, said a survey conducted on passengers showed that they expected better quality services with enhanced fare, which the Railways failed to provide. The auditor also compared Railways’ flexi fare with air fare for different periods in 13 sectors. Its study revealed that air fares were cheaper than the respective train fares for a large number of routes. The CAG recommended that there was a “need for review and fine-tuning in the scope of the scheme, so that not only more revenue is earned but number of passengers also increases, thus, further enhancing revenue”.
“While in air fares prices of tickets increase with increase in demand, in flexi fare, there is a fixed increase in fares after every 10% of tickets booked, irrespective of the demand. By paying a higher price for an air ticket, a passenger is ensured a confirmed seat, but a passenger who purchases a wait-listed train ticket by paying a higher amount does not have an assurance of a confirmed ticket,” the report said.
“Thus, charging a higher fare without providing confirmed seat/berth would force passengers to explore other available alternatives,” it added. In absolute numbers, CAG said, the premier trains carried 2.4 crore passengers during the post flexi period as compared to 2.5 crore passengers during the preflexi period.
Air Travel Cheaper Than Train In A Number Of Sectors
New Delhi:21.07.2018
The flexi fare scheme introduced by the Railways has resulted in lower occupancy though the government has benefited by more than ₹550 crore, the national auditor has said as it cautioned that the scheme may force passengers to look at the option of air travel.
The comptroller and auditor general (CAG) study on flexi fares in Rajdhani, Shatabdi and Duronto trains has found that “post implementation of this scheme, occupancy decreased in all classes, except sleeper class in Duronto trains”. “The occupancy increased only in a few premier trains. Even in AC 3 class, which was one of the most profitable classes, the occupancy dropped significantly after introduction of flexi fare and the vacant berths increased from 0.6% in pre-flexi period to 4.5% in post-flexi period,” CAG said. “Though, Railways earned ₹552 crore from passenger earnings from premier trains post flexi fare system during September 2016 to July 2017, there was de-growth of 2.7% in number of passengers, despite availability of higher number of berths/seats,” the national auditor observed.
The CAG, which tabled a report in Parliament on Friday, said a survey conducted on passengers showed that they expected better quality services with enhanced fare, which the Railways failed to provide. The auditor also compared Railways’ flexi fare with air fare for different periods in 13 sectors. Its study revealed that air fares were cheaper than the respective train fares for a large number of routes. The CAG recommended that there was a “need for review and fine-tuning in the scope of the scheme, so that not only more revenue is earned but number of passengers also increases, thus, further enhancing revenue”.
“While in air fares prices of tickets increase with increase in demand, in flexi fare, there is a fixed increase in fares after every 10% of tickets booked, irrespective of the demand. By paying a higher price for an air ticket, a passenger is ensured a confirmed seat, but a passenger who purchases a wait-listed train ticket by paying a higher amount does not have an assurance of a confirmed ticket,” the report said.
“Thus, charging a higher fare without providing confirmed seat/berth would force passengers to explore other available alternatives,” it added. In absolute numbers, CAG said, the premier trains carried 2.4 crore passengers during the post flexi period as compared to 2.5 crore passengers during the preflexi period.
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