'Railways should focus on maximum booking of berths by reducing fares', recommendation of Public Accounts Committee of Parliament

The Railways would do well to prepare a detailed plan before starting new trains and increase the booking of berths by reducing fares in such a way that revenue for the Railways increases. This is what has been put forth by the Public Accounts Committee of Parliament in a report tabled in the 18th Lok Sabha on 21 March.

The panel in its recent report (139th report), laid before the 17th Lok Sabha on 20 April 2023, was worried about losses to revenue through operating Suvidha Express trains. That report found dynamic pricing (flexi fares) resulted in unfilled seats and losses to the Railways. South Western Railways did not see it necessary to declare these trains special or superfast express trains despite recommendations and incurred a loss of Rs 80.74 crore between 2016 and 2021.

However, the Railway Ministry said that the actual earnings during this period were Rs 7.9 crore more than the estimated income, so it cannot be considered a loss. But the committee was dissatisfied with this argument of the Railways and again suggested that if the fares are improved, the Railways can get more passengers and the revenue will also increase.

The committee also said that excessively high fares may attract passengers to air travel, which will be a loss-making deal for the Railways. Therefore, the Railways should review its fares and find a solution that is convenient for the passengers.

The report said that between 2016 and 2021, the seats in AC-2 and AC-3 class of Suvidha Express trains were filled by less than 60%. Whereas the average booking of other trains on the same route was up to 144%. This made it clear that the problem was not due to festivals or holidays, but people were avoiding traveling due to high fares. The Railway Ministry replied that plans like fare review and discounts are made on the basis of train bookings. Under this, AC-3 can be converted into AC chair cars on less crowded routes, which will reduce the fare and increase the number of passengers.

The committee suggested to the Railways that an AI (Artificial Intelligence) model should be developed to understand the demand of passengers. This will help in finding out which seat is preferred more at what time and on which route. On this basis, tickets can be allocated correctly, so that seats do not remain vacant. The committee also said that the Railways should make the fare flexible, so that when seats are vacant, the fare can be reduced and more passengers travel by train.