It was not long ago that Indian Railways started online reservation of railway tickets. Earlier booking a ticket was a tedious chore. You had to stand in the queue for hours and it was not easy to know whether there is ticket available or not! All that changed with the arrival of online reservation.
Unfortunately, the online reservation service has its own evils. First, you end up paying a lot of “transaction charge”, “service charge” and “reservation charge” for your ticket. Here is an example,
Suppose you try to book a ticket from Trivandrum to Ernakulam. Ticket price is Rs. 110. On top of it there is something called “reservation charges” which is Rs. 20. Now on top of it there is a Rs.15 service charge! And then add Rs.10 as “bank transfer fee” and an additional service charge of Rs. 1 !!! So the total now comes out to be Rs.156. That means you end paying 40% extra for using the online reservation facility.
Remember, Railways is earning a lot through advertisements on its Web page. In fact, it is very difficult to find the login fields among all the ads on the home page as you can see below. Interestingly irctc.co.in has an Alexa rank of about 2000! So it is an advertising gold mine!

Now the most funny part of the online reservation site is something called the Shubh Yathra. It is similar to a “frequent flyer” programme. But unfortunately it applies only to upper class travel (even 3 tier AC is excluded!!) and there is an annual fee of Rs. 500! Look at the following equation to see what you get,
Assume you get Shubh Yathra membership card for Rs. 500. Now you get points only for your own personal tickets. Assume that you spend Rs. 10,000 for tickets (excluding family members). That means you earn 4*10,000/100 = 400 points. This translates to a bonus of Rs. 400. Now remember you have already paid Rs. 500 as subscription fee. So the net profit out of Shubh Yathra for you is = (-100 rupees). Aaha, you are paying them money ? Funny indeed!