Like airline, railways may opt for dynamic fare

Taking a cue from airlines, railways Wednesday said it is considering introduction of "dynamic" passenger fares, which is elastic and based on demand, in the backdrop of the national transporter`s dwindling financial health.

New Delhi: Taking a cue from airlines,
railways Wednesday said it is considering introduction of "dynamic" passenger fares, which is elastic and based on demand, in the backdrop of the national transporter`s dwindling financial health.

"We are looking at various avenues, including dynamic
pricing policy, for passenger fare. We have done it in
freight," Railway Minister Dinesh Trivedi said while
addressing Economic Editors` conference here.

Under the dynamic fare system, ticket prices go up when
the demand goes up and vice versa.

He said railways is considering many options in order to
ensure the financial health of the organisation.

Railways increased freight charges by six per cent on October 15 under dynamic freight policy.
Hinting at a possible passenger hike in near future, he
said "We have done it in freight three days back and it has
not hurt anybody. So, we will do it (passenger fare hike)
intelligently.

Passenger fares have not been touched for the last
eight years in railways.

To persistent queries as to when the passenger fare hike
will take place, Trivedi said "we are seized with the matter
and applying our minds everywhere. It cannot be done unscientifically. It has to be logical."

He said even railway unions, consultative committee
members are also asking for a hike in passenger fare.
However, he said nothing would be done to hurt the
poorest section of the society.

"Before doing anything, we have to ensure improvement in
services like hygiene, safety, punctuality and quality of
food."

PTI

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