INDIAN RAILWAY: Marketing Strategy Behind IRCTC

Yatrigan kripya dhyan de gadi sankhya 2024, platform number 1 pe aa chuki hai!!

Well I am pretty sure that you must have got a hint of what we are going to talk about!! The Indian Railway welcomes your 2024 journey and allows you to be rest assured regarding your ticket confirmation by IRCTC (Indian Railway Catering and Tourism Corporation Ltd). 

As per the record of 2023, Indian Railway manages the fourth largest railway system.

IRCTC receives more than 10,000 tickets per minute which is roughly 350 tickets per second. Started with just 27 tickets on the first day, IRCTC boasts about an average booking of 7 lakh everyday.

Today we are delving into the one and only company which has been serving the Indian travellers since it was incorporated in 1999. 

Let’s sip our “The Chai Garam” to know more about the success saga of Indian Railway Catering and Tourism Corporation Ltd. 

The History Behind the Indian Railway

Indian Railways was established in 1853 during British colonial rule, and played a pivotal role in India’s industrialization by facilitating the movement of goods and people. Over the years, it evolved into one of the world’s largest railway networks. 

The efficient transportation of goods and people by the railway network contributed significantly to economic development. 

The railways became the backbone of India’s transportation infrastructure, connecting remote areas and fostering trade and commerce.

The development of the locomotive sector within Indian Railways marked a crucial phase. The introduction of steam locomotives and later electric and diesel engines improved transportation efficiency. 

This shift not only accelerated the movement of goods and passengers but also played a key role in the development of the manufacturing sector.

The demand for locomotives led to the growth of indigenous manufacturing capabilities, creating a self-sufficient ecosystem. As the railway network expanded, it brought about a transformation in the socio-economic landscape of the country.

It facilitated migration, connecting rural areas to urban center’s and contributing to the growth of cities. The railways also played a significant role in cultural exchange as people from diverse regions travelled and interacted on trains.

The Subsidiary of Indian Railway: IRCTC

The Indian Railways Catering and Tourism Corporation (IRCTC) is a subsidiary that manages catering, tourism, and online ticketing services. 

IRCTC makes money primarily through ticket bookings, with a percentage of each ticket’s value serving as revenue. It also generates income through catering services, tourism packages, and online transactions.

IRCTC Tourism

IRCTC operates luxury trains such as Maharajas’ Express, Deccan Odyssey and other special tourist trains with varied classes. These may include standard to regular coaches with modifications and specially designed coaches. It also has package tours for domestic and foreign tourists.

IRCTC PRIVATE TRAINS

IRCTC also operates a few express trains along with Indian Railways. In 2020, the IRCTC began operating the first private train, a Tejas Express from New Delhi to Lucknow. IRCTC also operates the Ahmedabad–Mumbai Central Tejas Express and Kashi Makahal Express.

IRCTC Catering and hospitality

RCTC launched a packaged water brand “Rail Neer” in 2003, which is sold on trains and railway stations only.

IRCTC’s Rail Neer is now ‘India’s Most Trusted Brand’ for the Drinking Water Segment. The total production of Rail Neer  was 14.40 crore bottles during 2015-16 as against 11.95 crores bottles in 2014.

The Business Model

The business model of the Indian Railways Catering and Tourism Corporation (IRCTC) reflects its diversified services. 

The primary revenue source is the sale of train tickets, where a percentage of each ticket’s value contributes to the corporation’s income. Additionally, IRCTC generates revenue through catering services, providing meals on trains and at railway stations. 

The corporation also offers tourism packages, leveraging the vast rail network to provide travellers with diverse travel experiences. Revenue generated is often reinvested in infrastructure development, maintenance, and improving services.

As per the record IRCTC revenue from operations was 3,541 Crores INR in FY23. Undoubtedly we all are aware of the products that we use during our journey like “Rail Neer”, the pantry food etc. An average of 34 million water bottles are sold every month. 

The revenue being divided 63% comes from the e-ticketing platform and the rest comes from the catering services respectively.

State Teertha : State Teertha provides schemes for pilgrimage trains etc.  

“IRCTC says it is in the process of redesigning the pantry cars of trains with modern equipment. The redesigned pantry cars of Rajdhani and Duronto Express will be fully air-conditioned LHB coaches equipped with all modern kitchen equipments such as Combi Ovens, Bratt Pans, Deep fryers etc.. and will have adequate storage facility for dry and perishable items, proper exhaust chimneys, appropriate garbage bins and will also have accommodation for kitchen staff”.

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In conclusion

• Indian Railways has evolved from its humble beginnings to become one of the world’s largest and most intricate railway networks. 
• The development of the locomotive sector, the introduction of new trains, and the expansive rail network have played a crucial role in shaping India’s industrial and economic landscape. 
• While financial challenges persist, the enduring social and economic impact of Indian Railways remains integral to the nation’s development.

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