it cost's FGW▸ about ^10 to process a penalty fare so in some cases they loose money
So, why don't they outsource ticket inspection to another company that is paid on the basis of commission gained from penalty tickets ? There's probably a few wheel clamping firms or traffic wardens who would do it! It's a win-win....FGW doesn't lose money from collecting additional fares (and indeed publciitly ensures that more people actually buy a ticket), fare paying passengers get to watch fare dodgers being clamped :-)
Train companies have involved private security or similar with ticket inspections. It doesn't work. These firms generally employ largely unskilled people on low wages, who have less reason to use discretion or customer service. They also have little or no railway knowledge, and generally end up antagonising railway staff. Plenty of occasions involving them where staff themselves, let alone passengers have ended up being done, as they don't recognise the diagrams / passes. Plus it's a pain for the passenger to report issues with them, should they not follow correct procedure, as the train company would merely say, not our employees and pass you on.
A classic example of this was the use of Securicor employees on Manchester Piccadilly. Utter nightmare. I believe all ticketing is dealt with by employees of the train operating companies at this station now.
Plus like all contractors they are unlikely to have any real loyalty to the company or those who work in it, as they will receive no travel allowances or railway pensions. Cleaning standards improved greatly under
SWT▸ when all cleaning was taken in house.
Contracting out to the lowest bidder might improve company profits, but passengers won't see that in the form of ticket prices lowering, and certainly won't see any sort of improvement in customer service. Most of the trains have guards anyway, if you take the ticket aspect away from them, they will still be needed for the trains to run, and instead of having knowledgable railway people being visible, they'll just be in the brake van dossing, whilst the security staff roam the trains, penalty faring everyone.