Details

Autor(en) / Beteiligte

• Singh, Kartikeya
• Dhake, Pushkaraj
• Narayanaswami, Sundaravalli

Titel

A dynamic pricing strategy model for Indian Railways

Ist Teil von

• Journal of revenue and pricing management, 2024-08, Vol.23 (4), p.295-304

Ort / Verlag

London: Palgrave Macmillan UK

Erscheinungsjahr

2024

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• 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.