Green signal for frequent rail traveller scheme

Frequent rail travellers are soon slated to get benefits of the kind that airlines give to their regular customers. On the lines of frequent flier schemes, the Indian Railways is planning to launch a 'Frequent Rail Traveller Scheme' which will be available to regular passengers on Rajdhani, Shatabdi and Jan Shatabdi trains.

The scheme, expected to be launched in October this year, will enable passengers to accumulate points which will be redeemable against complimentary tickets on these trains.

The Railways is also talking to certain public sector banks like State Bank of India and Canara Bank, for a co-branded credit card, which will also work as a card for the frequent traveller scheme.

Passengers who travel in I AC, II AC and AC chair cars will accumulate points for their train travel during the year.

Points for journeys undertaken during the lean period will be more than those for journeys undertaken during the busy season. This has been done in order to encourage people to travel during the lean period, said officials.

Points accumulated during the entire year, will be exchangable for complimentary travel on the Rajdhani, Shatabdi and Jan Shatabdi trains. The scheme was announced by the then Railways Minister, Nitish Kumar in the interim Railway Budget presented in January 2004.

The scheme is part of the Railways' attempt to retain passengers in these segments from shifting to airlines which are increasingly offering attractive discount schemes and lower fares to passengers.

While the current schemes offered by airlines are not considered competition enough, the Railways have reason to be wary of the slew of low cost airlines which are planning to enter the domestic market.

While I AC passengers are relatively non price sensitive, the low cost airlines are likely to lure the II AC travellers on the basis of comparable costs.

Only 0.6 per cent of train passengers travel in AC classes.

However, this segment contributes almost 25 per cent of the revenues, indicating that a drop in passengers in this segment will hit rail finances where it hurts most.