KSRTC adopts dynamic fare model; bus booking rates now rise or fall with demand

Thiruvananthapuram: KSRTC has adopted a model of fixing fares in which fares increase or decrease in tandem with passenger demand. This has been implemented initially on interstate routes. 

The fare for each bus will be determined by monitoring bookings. The model is a ‘Dynamic Real-Time Flexi-Fare’ system, which private bus operators used to cash in on travel rush. The switch came after approval by the KSRTC Board.

On 25 and 26 December, fares for the new Volvo sleeper bus from Thiruvananthapuram to Bengaluru were fixed at ₹2,300, later reduced to ₹1,400. The ₹2,300 fare was reduced on the last day. Only four passengers had booked at the higher fare.

Due to low demand, private bus operators had lowered their fares, affecting KSRTC. Understanding this, KSRTC reduced its fare, which helped it gain 39 passengers in the final hours.