IRCTC asked to restart sharing 50 pc convenience fee with Railway Ministry

New Delhi:  The Railways has asked its online ticketing arm IRCTC to share 50 per cent of its revenue earned as convenience fee from bookings on its website with the national transporter, an arrangement that had been discontinued since the pandemic.
In a regulatory filing on Thursday, IRCTC informed SEBI that the Railways has said the revenue-sharing arrangement would be enforced from November 1.
Convenience fees charged from customers generated a sizable revenue for both IRCTC and the Railways. The fee is not part of the rail fare. It is for the service of online ticket booking offered by the IRCTC.
In 2014-15 when the revenue sharing ratio was 20-80, the Railway’s online ticketing and catering arm received a 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, the convenience fee was discontinued thereafter and the duo did not earn any revenue from it till 2019.