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All About Convenience Fee?



IRCTC has had a difficult time dealing with the convenience fee in recent years. IRCTC's share price fell by more than a quarter after the Railway Ministry ordered the platform to share half of the convenience fee.


The issue was quickly rectified when the ministry reversed its decision, aiding in the recovery of the stock values as well. However, before then, only a few group of investors and customers could see the relevance of a small charge, which to the average consumer seemed harmless.




Convenience charge shows on your phone screen as a pop-up, justifying the slight but inevitable discrepancy between the price you thought you would pay, and what you really wind up spending.




Convenience Fee?

For aggregators, the convenience charge is a primary source of revenue from online transactions; for some, it is their exclusive source of revenue. Cancellation fees, cross-selling, rescheduling fees, and other income streams are also utilised by these platforms.




Customers are charged an additional fee for making reservations from the convenience of their own homes. It is believed by service providers that charging clients for the ease of using their infrastructure and paying administrative costs is a fair trade-off.



A convenience fee is a set price that is assessed regardless of the number of tickets purchased. If you book an international flight rather than a local one, you'll be charged more for the booking.




So, for non-AC tickets, IRCTC charges 15 while for AC tickets, it charges 30. The convenience cost for UPI platform reservations is often cheaper.


Travel websites also charge a service fee, which can range from Rs300 to Rs500 for a single flight ticket.


Indeed, customers are compelled to pay convenience fees. They are compelled to pay anytime they are required to make a reservation. However, other services, such as EaseMyTrip, prohibit users from directly paying convenience fees.

A convenience charge is a mandatory payment that consumers must make in order to use the services of a booking site or aggregator.


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