Railways looking at airline pricing model: Lohani | Business Standard News

The much-hyped dynamic pricing system that invited a lot of criticism for the Indian Railways may soon be converted into an airline-like model. This could mean that railway fares would go down during lean seasons.

Ashwani Lohani, the newly-appointed railway board chairman, said the railways were relooking at the new pricing system. Though a railway cadre official, Lohani was Air India chairman when he moved to the Railway Board in August, and, therefore, has seen the airline pricing model closely.

“I personally was not happy with the way dynamic pricing has been structured. We have to really look at the way airlines are doing it,” Lohani said in an interview.

The new system of pricing called flexi-fare or dynamic pricing was launched on September 9, 2016, on 142 premium trains, including the Rajdhanis, Shatabdis and Durontos.

The pricing system, based on the models used by cab aggregators, had faced wide criticism and led to low occupancy levels since airlines became a cheaper option for passengers.

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Railways looking at airline pricing model: Lohani | Business Standard News.