The Upgradation system that is a feature of airlines, is an innovative scheme introduced by the Indian Railway to use the availability of berths to the fullest extent. Upgradation in railway parlance simply means an Upgradation of a ticket of lower class starting from the three tier sleeper class to higher class. The system is so made that when there is availability of berths in three tier AC, or two tier Ac or first Ac, a ticket is upgraded to the next higher class. If there is no waiting list in sleeper class there happens to be no Upgradation.
It is observed that railway loses 28,000 crores due to refund of Wait listed Tickets. And to arrest this lose railway has introduced the system. It is observed that nearly 40 percent of berths in higher class go vacant annually. But there happens to be continuous demands in sleeper class. Railway only wants to use that 40 percent berths and earn. It should be noted that passengers upgraded under this scheme need not pay any extra charges for the change in class.
So before boarding passenger need to check their ticket position so as to ensure if any Upgradation is done on his ticket or not. This will ensure hassle free boarding. However, ticket checking staff on board informs such ticket holders and helps them in changing their bogie or class.
Upgradation is available to the full fare paying passengers. If anyone purchases a ticket availing any kind of concession, then his or her ticket will not be considered for Upgradation. In the event of cancellation of upgraded ticket, refund is done under the parent class in which one had purchased ticket. At the time of reservation railway asks passenger to tick their preference whether his or her ticket is available for Upgradation or not. And while upgrading at the time of final chart preparation, those tickets are taken into account that showed preferences for Upgradation.