It suggested ticket prices may vary on various factors e.g. higher prices for a train which takes lesser time to travel compared to others, additional charges for lower berth and travel during festival times.
It also recommended passengers be made to pay more for choosing premium trains and also for booking close to departure dates.
In a nearly 20-minute meeting on flexi-fare on March 13, the minister is believed to have expressed his unhappiness over the proposals and asked the committee to take a relook since data showed that in its current from the flexi-fare scheme has already resulted in higher revenue and increase in number of passengers.
The committee consists of some Railway Board officials, NITI Aayog adviser Ravinder Goyal, Executive Director (Revenue Management) of Air India Meenakshi Malik, professor S Sriram, and Iti Mani, Director, Revenue, Le Meridien, Delhi.
Senior officials of the ministry also said flexi-fare scheme has been beneficial for the national transporter. They maintained there has been an increase in number of passengers as well as earnings in flexi-fare trains (Rajdhani, Duronto and Shatabdi) in the six months period from September to February.
In 2015-2016, when flexi-fare was not applicable, the data show 138.71 lakh tickets were booked and railways earned Rs 19.316 billion.
With flexi-fare system introduced from September 2016, in 2016-2017, 13.74 million tickets were booked and railways' earnings rose to Rs 21.92 billion. The next year, while 14.08 million (till February 2018) tickets were booked, the railways' earning from it further rose to Rs 22.96 billion.
The flexi-fare system led to up to 50 per cent increase in fares. Under the formula, base fares increase from 10 per cent to 50 per cent with every 10 per cent of berths booked.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)