Thank you for taking the time to put down a very detailed, precise response. Its rare to see such detailed responses here on IRI. Let me put my reply too also in perspective.
I too used to work in the much hyped tech industry in Bangalore. And while AC class was a luxury during my childhood, now it has become very easy to afford and quite often, my first choice when my parents are traveling. And I could say the same about a lot of people I have met over the years. While it is true that growth had slowed down in recent times, the fact remains that throughout this growth period, a big chunk of the 90's middle...
more... class has now moved into the upper middle class where they have proliferated since then.
As you have correctly pointed out, dynamic pricing across all classes of trains will be greatly damaging to IR.But then it would be equally detrimental if we do not acknowledge that at least a small section of the society has now moved into the next financial tier and are there to stay .
A flat rate hike for AC class will be a disastrous move because people would just choose other means of transport, but it cannot be avoided if IR has to continue the subsidies in other classes. Thats why I feel a dynamic pricing, with properly calculated ceilings would be a good option as it would increase the revenue and remove the necessity of having a price hike in the near future. The limits have to be set correctly, so that even among the AC passengers, only a small percentage will be affected. That way at least we can push out the flat price hikes by at least a few years.