How surge pricing in train tickets will affect you

In less than 24 hours, the railway ministry's price surge plan will be implemented in premier trains. A flexi tariff plan that works on "high demand, high cost" mechanism is set to pinch the aam aadmi's pocket.

So, base fare will be hiked by 10 per cent at every 10 per cent of berths sold. Other service charges and surcharges will remain the same, but there will be an increase of almost 40 per cent on 3-tier AC tickets and up to 50 per cent on 2-tier AC tickets.

For passengers of Rajdhani Express, Duronto and Shatabdi, there'll be a major fare hike of up to 50 per cent in base fares. The new fares will pitch train travel in direct competition with low-cost airlines.

Interestingly, railways minister Suresh Prabhu had ruled out train fare hike in his Budget speech. The railways has targeted passenger revenue of Rs 51,000 crore this fiscal, but experts feel it will be able to mop up only Rs 500 crore with the latest move.

Also read: How to put Indian Railways on track