IRCTC Flexi Fare System | IRCTC Flexi Fare System for Trains
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
Commercial Circular No. 25 of 2025
No.TC II/2910/2025/Flexi Fare recommendation
New Delhi, dated 02.11.2025
The Principal Chief Commercial Managers,
All Zonal Railways
MD/ CRIS/ Chanakyapuri/ New Delhi
Sub: Rationalisation of Flexi fare scheme in Rajdhani, Shatabdi and Duronto trains.
Ref: 1. Commercial Circular no.65 of 2025 dated 06.11.2025
2. Commercial Circular no.22 of 2025 dated 24.04.2025
3. Commercial Circular no. 56 of 2025 dated 11.11.2025
In continuation of above instructions, Ministry of Railways have decided that the currency of above instructions regarding rationlisation of flexi fare scheme shall be extended further for another period of one year i.e. from 15.03.2021 to 14.03.2022.
The interim changes made in the CC no. 65 of 2025 on rationalization of flexi fare in Rajdhani, Shatabdi and Duronto trains vide CC no. 44 of 2019 for withdrawal of graded discount from Humsafar train and vide CC no. 09 of 2025 for delegation of power to PCCMs of Zonal Railways to implement graded discount scheme in Rajdhani, Shatabdi and Duronto trains from 01 to 04 days prior to scheduled departure of the train instead of D-4 of the scheduled departure of the trains shall also be followed.
2. CRIS shall ensure necessary changes in advance so that extension shall be effective from due ARP date.
3. Zonal Railways shall ensure required changes in advance if any so that extension shall be effective from due ARP date.
4. This issues with the concurrence of Finance Directorate of Ministry of Railways
(Shelly Srivastava)
Director Passenger Marketing
Railway Board
Here’s a clear and up-to-date breakdown of the IRCTC Flexi Fare System, how it works, its outcomes, and recent adjustments:
What is the Flexi-Fare System?
- Implemented in September 2025, the Flexi-Fare System applies to premium trains like Rajdhani, Shatabdi, and Duronto Expresses.
- It introduces dynamic pricing: for every 10% of berths sold, the base fare increases by 10%, capped at a maximum limit (initially 1.5× the base fare).
Importantly, this system does not apply to 1AC and Executive Class fares.
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How It Works — Sample Scenario:
- Base fare: ₹1,000
- 10% seats booked → Fare increases to ₹1,100
- At 50% occupancy (max cap): Fare reaches ₹1,400 (using the revised 1.4× cap)
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Passenger Impact & Policy Reaction
- The Comptroller & Auditor General (CAG) found that while earnings increased by ₹552 crore, passenger numbers dropped by 675,000 compared to the equivalent pre-Flexi period.
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- Capped maximum fare hike reduced from 1.5× to 1.4× the base fare.
- Flexi fares were scrapped for trains with <50% occupancy, often during lean travel periods or for underperforming routes.
- Graded discounts (up to 20%) offered for trains with <60% bookings, especially in last-minute bookings (within 4 days of travel).
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- Criticism:
- A Parliamentary Standing Committee labeled the system “impractical and discriminatory,” due to disproportionately affecting lower-income passengers.
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- A Parliamentary Standing Committee labeled the system “impractical and discriminatory,” due to disproportionately affecting lower-income passengers.
At a Glance: Flexi-Fare Summary
| Aspect | Details |
|---|---|
| Introduction Date | Sept 2025 on Rajdhani, Shatabdi, Duronto |
| How It Works | Fare increases 10% for every 10% berths booked, up to a capped amount |
| Maximum Fare Cap | Initially 1.5× base fare; later reduced to 1.4× |
| 1AC / Executive | No impact — fares remain unchanged |
| Passenger Impact | Higher income but lower patronage and complaints of fairness |
| Policy Changes | Scrapped in low-occupancy trains; introduced last-minute discounts |
Final Thoughts
The Flexi-Fare mechanism brings dynamic pricing to Indian Railways’ premium trains, aligning with trends in industries like aviation. Yet, regulatory feedback and occupancy data prompted important course corrections—reducing fare caps, revoking the system for underutilized trains, and introducing last-minute discounts—ensuring a better balance between revenue goals and affordability.
Curious about the current status for a specific train? Or want tips for booking efficiently during these dynamic pricing tiers? Just let me know!