A dynamic pricing strategy model for Indian Railways

Kartikeya Singh, Pushkaraj Dhake and Sundaravalli Narayanaswami ()
Additional contact information
Kartikeya Singh: Indian Institute of Management
Pushkaraj Dhake: Indian Institute of Management
Sundaravalli Narayanaswami: Indian Institute of Management

Journal of Revenue and Pricing Management, 2024, vol. 23, issue 4, No 3, 295-304

Abstract: Abstract The Indian Railways has adopted a dynamic pricing mechanism for its premium trains like Shatabdi, Rajdhani, and Duronto. This led to an increase in its revenue but also a fall in passenger traffic. In this paper, we have analyzed the existing dynamic pricing model. A major flaw in the existing system is that the present system is only a fare hike system rather than a dynamic pricing system as there is no provision for a decrease in prices when the demand is low. Considering this, we have developed a new model that incorporates both inter-temporal pricing and demand-based pricing to come up with the dynamic fares along with the provision of having a downside in case of low demand. We developed a route selection criteria based on the key parameters identified by us where dynamic pricing would yield good results. The model was then tested on these routes using real-time data to determine the feasibility of the dynamic pricing system.

Keywords: Dynamic pricing; Indian Railways; Revenue management; Seat occupancy; Time constraints (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41272-023-00450-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorapm:v:23:y:2024:i:4:d:10.1057_s41272-023-00450-w

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41272

DOI: 10.1057/s41272-023-00450-w

Access Statistics for this article

Journal of Revenue and Pricing Management is currently edited by Ian Yeoman

More articles in Journal of Revenue and Pricing Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().