Great Western Coffee Shop

From the Galloway Gazette [here] (http://www.gallowaygazette.co.uk/news/local-headlines/anger-as-rail-fares-rocket-1-2563621)


Stranraer to Glasgow is an almost identical distance to Swindon to Paddington

Offer fare from Stranraer - 15.00; off peak day return now 26.10; anytime return now 43.10
Super Off peak from Swindon - 41.00; off peak return 51.50; anytime return 112.00

Why does it cost twice as much to provide a Swindon to London seat as a Stranraer to Glasgow seat?  I would have thought that there were advantages to be had in the numbers of people travelling in keeping the cost per person down, but it seems from this example that the reverse is the case!

With the Stranraer branch I suspect it's because passenger numbers are so low that they need to have low fares to attract more passengers. Now the passenger ferry terminal for Belfast has moved there isn't many people who want to travel to Stranraer, lower fares being needed to attract people. I'd say the reverse is the case normally, where there is a larger demand there is more money to be made, so the fares are high. Even if it discourages a small percentage of people from travelling it's made up for by everybody else paying higher fares.

But you are quoting fares - the price to the consumer, not the cost to the supplier. Pricing is essentially a marketing decision reflecting the attractiveness of the product or service, and it needn't have any relationship to the cost (especially in transport where subsidy comes into the equation!)