The railways have started the Flexi-fare system in September 2016, thinking it is a smart move of earning more revenue by smart pricing.
Under this system, the base fare increases by 10% with every 10% of berths sold subject to a maximum ceiling limit of 1.5 times in classes Second AC, Sleeper, Second Sitting (Reserved), AC Chair Car and 1.4 times in 3rd AC class. No change was made in the fares for 1st AC and Executive Class.
This is going to affect people who are booking their tickets late. The person who is booking when the train is almost full has to pay 1.5 times for the fare. According to data provided by the Ministry of Railways in Parliament this year, the Flexi-fare has resulted in a drop in occupancy of Rajdhani, Shatabdi, and Durontos.