FLEXIFARE SYSTEM

Submitted by Keerthi priya.BMtech ece

CONTENTSIntroductionFare chartFare description Important decisions made by the systemChoices of bookingConcession and refund ruleKey points to be followed in the systemSurge priceIntroduction about NFRResponse of flexi fare system

Railways introduce flexi fare system in Rajdhani, Duronto and Shatabdi trains

The Railways have decided to put in place the flexi fare system for premier trains – Rajdhani, Duronto and Shatabdi from September 9. The base fare for these trains will be on flexi fare system, according to railways.

INTRODUCTION

FARE STRUCTURE FOR RAJDHANI AND DURONTO CATEGORY OF TRAINS

Charges % of berths 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

2S 1X 1.1X

1.2X

1.3X

1.4X

1.5X

1.5X

1.5X

1.5X

1.5X

SL 1X 1.1X

1.2X

1.3X

1.4X

1.5X

1.5X

1.5X

1.5X

1.5X

3A 1X 1.1X

1.2X

1.3X

1.4X

1.4X

1.4X

1.4X

1.4X

1.4X

2A 1X 1.1X

1.2X

1.3X

1.4X

1.5X

1.5X

1.5X

1.5X

1.5X

1A 1X 1X 1X 1X 1X 1X 1X 1X 1X 1X

X= Base Fare

FARE CHART

FARE CHART CONTFARE STRUCTURE FOR SHATABDI  CATEGORY OF TRAINS

Charges

%of

berths

10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

CC 1X 1.1X 1.2X 1.3X 1.4X 1.5X 1.5X 1.5X 1.5X 1.5X

EC 1X 1X 1X 1X 1X 1X 1X 1X 1X 1X

X= Base Fare

FARE CHART CONT

•‘X’ stands for the present base fares. Other supplementary charges like reservation charges, Superfast charge, Catering charges, Service tax etc., as applicable shall be levied separately.

 

IMPORTANT DECISIONS

According to the statement, other supplementary charges like reservation, superfast, catering and service tax will be levied separately.  However, there will be no change in the existing fare for 1AC and Executive Class of travel in premier trains.

There are total 42 Rajdhani trains, 46 Shatabdi and 54 Duronto trains.

CHOICES OF BOOKINGThe railways further said that vacant berths left at the time of charting would be offered for current booking.

(A). Vacant berths left at the time of charting would be offered for current booking. Tickets under current booking shall be sold at the last price sold for that class and other supplementary charges like reservation fee, superfast charges, catering charges, service tax etc., as applicable shall be levied in full.

(B). The information should also be displayed to the passenger during the booking in case the fare of lower class becomes higher than the higher class to exercise option to travel by the higher class.

CONCESSION AND REFUND RULES

Concession: Normal concession as applicable for respective concessional ticket will be admissible on the base fare of the ticket at each stage as per the table above.Refund Rules:  There will be no change in the existing refund rules.

KEY POINTS•No Premium Tatkal Quota in these trains: The present limit of berths set aside for Tatkal quota in these trains shall be operated as per the existing guidelines.  However, no additional charges as “Tatkal charges” will be levied.  The berths assigned under the Tatkal quota shall be booked at the rate of 1.5 times of the base fare for all classes (2S, SL, 2A, 3A and CC) except 1AC and EC.

•Tatkal will be available at 150 percent of base fare. However, no additional charges as “Tatkal charges” will be levied.

•The present limit of berths set aside for Tatkal quota will remain

•Other Charges: There shall be nochange in charges for reservation fee, superfast surcharge etc. Such charges,wherever applicable, shall continueto be levied additionally as per existing instructions.

•Service tax will continue to be levied as applicable as per instructions issued in this regard.All other rules and conditions pertaining to the above category of trains shall be   continued without any change.•The revised fares will notapply totickets already issued in advance forjourneys to commence on or after09.09.2016.In the case of tickets already issuedat pre-revised rates, the difference of fare shall not be collected from the passengers.•These changes should be carried out in manual ticketing system and in PRS, UTS  etc.,The last price for every class of tickets for the particular train should be printed in the reservation chart for the purpose of charging of difference of fare in the train or charging the passengers of the train without ticket etc.,

KEY POINTS CONT

SURGE PRICING

In Short : Surge Pricing Explained•Delhi - Mumbai  Rajadhani 2nd AC : 42%•Delhi - Bangalore Rajadhani 2nd AC : 40%•Delhi - Howrah  Duranto 2nd AC : 43%•Delhi - Chandigarh Shatabdi  : 32%

NFRThe Non-Fare Revenue (NFR) Directorate of Railway Ministry pegs the revenue from advertisements through onboard radio at over Rs 100 crore per year.

 Last year's total advertising earnings were Rs 263 crore. According to a senior official, the capital expenditure in setting up speakers and amplifiers for the purpose is expected to be around Rs 40 crore while the operating expenditure per year is estimated at nearly 3 crore. 

Neither of the two expenditures will be borne by Railways. The project will be tendered to the highest bidder on revenue sharing model. 

Once implemented, all trains will have a customised playlist of music, which could vary statewise. 

The onboard Public Announcement (PA) system will also be used to disseminate passenger convenience related information, like delay in arrival, reason for delay, among others. 

. 

These will be interspersed with advertisements

Currently, the ministry is considering internet-based radio for a wider reach across its entire network but is open to alternative technology or medium, sources said. 

A server on the train will download the content as and when internet network is available and will keep a buffer of 6 to 8 hours in case the train is passing through remote areas with no internet coverage to ensure uninterrupted playout. 

According to a KPMG-FICCI study, the advertising revenue of the Media and Entertainment industry is expected to grow at 15.9 per cent in the next five years and will generate Rs 994 billion. 

NFR CONT

By 2020, the advertising revenue through TV is likely to be at Rs 364 billion, while that from print at Rs 286 billion. 

Similarly, revenue from digital advertising is likely to grow to Rs 255 billion and from radio it is expected to reach Rs 43 billion. 

Out of Home (OOH) - advertisements on railway property - media is expected to fetch Rs 45 billion.

NFR CONT

RESPONSE"Our flexi-fare system has got a good response and passengers have responded well to the scheme as there is about 30 per cent booking in the last two days," Railway board member (traffic) Mohd Jamshed said here.

The railways has introduced the flex-fare system in Rajdhani, Shatadbi and Duronto trains from September 9, aiming at raking in Rs 500 crore more during the current financial year.

Jamshed said the railways has earned Rs 84 lakh and Rs 81 lakh more on September 9 and 10 respectively from the flex-fare system.

As per the new system, passengers will be shelling out between 10 and 50 per cent more under the surge pricing system .

While 10 per cent of the seats will be sold under the normal fare in the beginning, it will go on increasing by 10 per cent with every 10 per cent of berths sold with a ceiling of 50 per cent.

Responding to the charge that train fare has now become costlier than airfare, Jamshed told reporters despite flexi-fare system, train travel cost is still lower than airfare.

RESPONSE CONT

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