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Concept of surge pricing

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The Indian Railways will introduce flexi-fares on Rajdhani, Duronto and Shatabdi trains from this Friday. Under a demand-driven formula, fares on these trains in the higher classes can go up by a maximum of 1.5 times the base fare.The rail surge pricing (officials prefer the phrase "flexi fares", not the more eloquent "surge pricing") is still far lower than that of airlines.

1. Explain the concept of ‘Surge Pricing' and how this will help Railways .Be specific in your answer?

2. Is there any industry or Firm who was also using the similar kind of pricing strategy? Explain it.

Reference no: EM131227215

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