Railways withdraws IRCTC convenience fee sharing decision
New Delhi Oct 29 PTI To protect its catering and ticketing arm and after taking stock of market sentiments the Railways has decided to reverse its decision demanding 50 per cent revenue share from convenience fee from bookings on the IRCTC website sources said on FridayAs reported by PTI the Indian Railway Catering and Tourism Corporation IRCTC in a regulatory filing on Thursday had said that it will share the revenue earned from convenience fee collected by it in the ratio of 5050 with effect from November 1Shares of IRCTC plunged 25 per cent to Rs 685 apiece in Fridays opening deals a day after the Railways decision to ask for the revenue sharing arrangementThe Railway Board has decided to reverse its decision given the market sentiment and also the fact that the IRCTC revenues have suffered a lot during the lockdown Also the view was that the revenue earned by the Railways through this arrangement was not worth the losses suffered by IRCTC a top source told PTIConvenience fee charged from customers generated sizable revenue for both IRCTC and the Railways In 2014-15 when the revenue sharing was 20-80 the catering arm received majority of the Rs 253 crore revenue The following year the revenue generated from this was Rs 552 crore with a 50-50 share arrangement In 2016-17 with a similar revenue sharing model the fee generated Rs 362 crore as earning for the IRCTC-Railway combine However convenience fee was discontinued thereafter and the duo did not earn any revenue from it till 2019 The IRCTC began charging the fee again during the coronavirus crisis mainly to boost its revenues during the slowdown The Railways however gave up its share In 2019-20 IRCTC earned Rs 352 crore from convenience fee while in 2020-21 it earned Rs 299 croreTill August this year the IRCTC had earned Rs 224 croreThe convenience fee is not part of the rail fare It is for the service offered by IRCTC of booking a ticket on the web PTI ASG RHL
New Delhi Oct 29 PTI To protect its catering and ticketing arm and after taking stock of market sentiments the Railways has decided to reverse its decision demanding 50 per cent revenue share from convenience fee from bookings on the IRCTC website sources said on FridayAs reported by PTI the Indian Railway Catering and Tourism Corporation IRCTC in a regulatory filing on Thursday had said that it will share the revenue earned from convenience fee collected by it in the ratio of 5050 with effect from November 1Shares of IRCTC plunged 25 per cent to Rs 685 apiece in Fridays opening deals a day after the Railways decision to ask for the revenue sharing arrangementThe Railway Board has decided to reverse its decision given the market sentiment and also the fact that the IRCTC revenues have suffered a lot during the lockdown Also the view was that the revenue earned by the Railways through this arrangement was not worth the losses suffered by IRCTC a top source told PTIConvenience fee charged from customers generated sizable revenue for both IRCTC and the Railways In 2014-15 when the revenue sharing was 20-80 the catering arm received majority of the Rs 253 crore revenue The following year the revenue generated from this was Rs 552 crore with a 50-50 share arrangement In 2016-17 with a similar revenue sharing model the fee generated Rs 362 crore as earning for the IRCTC-Railway combine However convenience fee was discontinued thereafter and the duo did not earn any revenue from it till 2019 The IRCTC began charging the fee again during the coronavirus crisis mainly to boost its revenues during the slowdown The Railways however gave up its share In 2019-20 IRCTC earned Rs 352 crore from convenience fee while in 2020-21 it earned Rs 299 croreTill August this year the IRCTC had earned Rs 224 croreThe convenience fee is not part of the rail fare It is for the service offered by IRCTC of booking a ticket on the web PTI ASG RHL
