Bengaluru: Shifting travel patterns among passengers have unexpectedly become a significant revenue source for Indian Railways, with ticket cancellations generating substantial income through clerkage charges. The South Western Railway (SWR) has reported earnings of Rs 90.4 crore from cancellation fees over the past five years across its Bengaluru, Mysuru, and Mangaluru divisions, highlighting how flexible travel plans are contributing to railway finances.
Post-Pandemic Recovery in Cancellation Revenue
Revenue from ticket cancellations saw a dramatic fluctuation during and after the COVID-19 pandemic. In 2021, as travel restrictions severely impacted train services and demand, cancellation revenue plummeted to just Rs 3.2 lakh. However, with the gradual restoration of services, collections rebounded to Rs 28 lakh in 2022. The recovery accelerated significantly in subsequent years.
The Railway Board recorded Rs 27 crore in cancellation charges in 2023, which increased to approximately Rs 30.3 crore in 2024 and further rose to Rs 32.9 crore in 2025. This steady growth indicates a normalization in ticket booking and cancellation patterns as passenger volumes have increased, reflecting restored confidence in rail travel.
Primary Reasons for Ticket Cancellations
Officials from South Western Railway's commercial department identified three main factors driving ticket cancellations: passengers securing tickets on waiting lists, arranging alternate modes of transport, and changes in travel plans. An official emphasized that the increase in cancellations stems from flexible travel arrangements rather than ticket hoarding, noting that cancellation patterns are not tied to specific seasons or routes.
"The reasons for more cancellations are flexible travel plans, but not due to ticket hoarding. Cancellation of tickets is not related to seasons or routes, and so far, we did not receive any complaint in this division regarding high cancellation charges," the official stated.
Railway Cancellation Charges Structure
According to railway regulations, passengers canceling tickets more than 48 hours before the scheduled departure pay a fixed clerkage charge. This preset flat fee varies by class:
- AC First Class: Rs 240
- AC 2-Tier: Rs 200
- AC 3-Tier or AC Chair Car: Rs 180
- Sleeper Class: Rs 120
- Second Sitting: Rs 60
For cancellations made between 48 hours and 12 hours before departure, 25% of the fare is deducted, subject to the minimum clerkage charge. The deduction increases to 50% of the fare for cancellations between 12 hours and four hours before departure, which is the highest slab for refundable tickets. No refund is provided for cancellations within four hours of departure.
In the case of RAC (Reservation Against Cancellation) or waitlisted tickets, a flat Rs 60 per passenger is deducted if canceled up to 30 minutes before departure, with no refund allowed thereafter.
Overall Passenger and Revenue Growth
Over the last five years, more than 7,000 lakh passengers traveled from Karnataka by railways, generating Rs 13,748.5 crores in revenue for the Railway Board. Officials attribute the increase in revenue not only to cancellation charges but also to a rise in the number of trains and higher travel frequency among passengers.
The following table summarizes the financial performance and passenger numbers for South Western Railway in recent years:
Financial Year | Total Revenue (in Rs crore) | Number of Passengers (in lakh)
- 2025 – 2026 (up to Dec): 2,543.5 | 1,330
- 2024 – 2025: 3,172.9 | 1,655.3
- 2023 – 2024: 3,090.5 | 1,621.6
- 2022 – 2023: 2,755.4 | 1,503.4
- 2021 – 2022: 1,572.9 | 730.6
- 2020 – 2021: 613.5 | 164.3
Source: SWR; Figures rounded off. This data underscores the correlation between growing passenger numbers and enhanced revenue streams, including from cancellation fees, as railway services expand and travel demand stabilizes post-pandemic.
