Train fares are set to rise in India as the country's railway enterprise has decided to adopt surge-pricing model.
The flexi fare system will be rolled out in the three fastest trains of India — Rajdhani, Shatabdi and Duronto.
Under the new surge-pricing model, ticket tariffs will rise by 10 per cent on the base price after every 10 per cent of tickets are sold.
Ticket prices will increase till it reaches 50 per cent for 2AC and chair car coaches, and 40 per cent for 3AC, the press statement issued by the Indian Railways said.
That means ticket tariffs will get 1.5 times costlier if one is late in booking berths in 2AC and chair car coaches. For 3AC coaches, the price ceiling is 1.4 times the base price.
Two-AC tier are air-conditioned coaches which have six sleeping berths in each bay. The 3AC tier has eight sleeping berths in a single bay, while a chair car are seater coaches in Indian trains.
Other additional charges like reservation charges, superfast charge, catering charges and service tax will be imposed separately, the Indian Railways said.
The hike in fares ahead of the festive season in India is likely to cause dissatisfaction in the country.
The surge-pricing model, which was first adopted by cab-hailing apps Uber and Ola in the country's national capital region Delhi NCR, came under intense criticism from passengers as prices increase based on demand. Ola and Uber had to eventually scrap the model amid public and political pressure.