Railways witnesses jump in premium class travel | Business Line

Bitten by the travel bug in the year-end holiday season, many more people took to the most premium and priciest segment in trains — the first class air conditioned coaches. December 2017 saw a near 16 per cent surge in AC 1st class passengers with an additional 35,658 using the train compared to the year before.

Ticket prices
The government reckons that part of this growth could have come as Railways slashed prices in select trains through dynamic pricing, where ticket prices are linked to occupancy levels, a method commonly used by airlines. The Railway Ministry said in Parliament in the last session that it introduced some discounts that include a 10 per cent rebate in basic fare on vacant berths or seats after preparation of first chart in Rajdhani, Shatabdi and Duronto trains. It has also lowered the number of berths available under Tatkal quota from 30 per cent to 10 per cent.

Passengers, however, want even lower fares when the trains are empty, according to an online poll conducted by LocalCircles, an online survey agency.

Asked about the stiff competition AC-2 tier segments are facing from airlines, given their comparable fares on many routes, Lohani said, “A committee of experts has suggested a rejig of the dynamic pricing, on which a final decision is likely by the end of January or early February.”

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Railways witnesses jump in premium class travel – Business Line.