Rail fare prices - the basis of increases (merged ongoing discussion)

[whole diary]

[devon_metro]

The new structure is perhaps sensible, but FGW^▸ (First Great Western) should have introduced LOWER Super Off Peak fares like other TOCs^▸ (Train Operating Company) have done. (Chiltern, for example)

As well as this, apparently certain already busy trains from the West Country will be in the Super Off Peak period, and will only get busier.

But as demonstrated, people are still paying it.

What sensible business model would include loss of revenue?

[Btline]

Yes, but introducing a lower price for the quietist trains would encourage new passengers (drawn by the lower fares) whilst retaining the existing passengers who travel on the other trains.

I expect that many passengers will switch to other trains to avoid paying more, but no new passengers will be drawn in.

And the reason people will pay it is that they've no choice. If they want a decent journey time to London, then the GWR^▸ (Great Western Railway) route is the only way.

It's just making rail travel harder for less well off people. It forces people onto Advance fares, and makes rail travel less attractive due to the reduced flexibility.

It gives FGW^▸ (First Great Western) an (even worse) bad name and damages the railway as a whole.

[JayMac]

The new structure is perhaps sensible, but FGW^▸ (First Great Western) should have introduced LOWER Super Off Peak fares like other TOCs^▸ (Train Operating Company) have done. (Chiltern, for example)

As well as this, apparently certain already busy trains from the West Country will be in the Super Off Peak period, and will only get busier.

But as demonstrated, people are still paying it.

What sensible business model would include loss of revenue?

Your not suggesting that FGW have a sensible business model are you? Sensible business models are developed by sensible businesses. Rail franchises are nothing like sensible businesses. They were developed by politicians and civil servants with about as much business sense as a fish.
 
Oh, and people are still 'paying it' because they have little or no choice.

[Lee]

You pays yer money, yer takes your choice...

From the Department for Transport:

New Year heralds lower fares for many rail passengers

The majority of commuters will benefit from cheaper tickets from Saturday as most regulated rail fares drop in price.

The majority of rail journey fares are regulated by the Government. Increases to most fares are capped at 1% above inflation with the changes implemented in January, based on the previous July's RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context)) figure. Last July's RPI figure was  -1.4%, so most regulated fares will now fall.

In August the Government also announced it had taken away the flexibility for operators to raise individual regulated fares by up to 5% above the national fare change, protecting passengers from unduly steep rises in future regulated fares.

Transport Secretary Andrew Adonis said:

"The majority of rail journeys in this country are made on regulated fares and most of those rail fares will fall from Saturday. Passengers will welcome these reductions - regulated fares include the weekly, monthly and annual season tickets used by commuters as well as many day singles and returns and long distance off-peak fares.

"This is good news for many passengers, for the first time in a generation they will see the cost of their tickets fall. I hope that this will encourage more people to travel by train, which is also good news for the economy and the environment."

Also from Saturday 2 January travellers will be able to use their Oyster^▸ (Smartcard system used by passengers on Transport for London services) 'Pay As You Go' cards on London's rail network. The change means the majority of underground and overground services will be fully integrated for commuters travelling from railway stations in London.

Notes to editors

1.      Two train operators are currently excepted from the RPI+1% rule:

*  Southeastern has a higher cap of RPI +3% for five years from 2007. This is in recognition of historically low fares on Southeastern and to allow for the investment recently made in the Kent services.

*  In the Northern franchise, West Yorkshire PTE^▸ (Passenger Transport Executive) fares also have a higher cap of RPI +3% from 2007 until the end of the franchise to enable investment in additional trains in and around Leeds.

2.      Previously, train operators have been allowed to increase individual regulated fares by as much as 5% above the average cap on regulated fares so long as the average increase across their 'basket' of fares was no more than RPI+1%. Andrew Adonis announced in, February 2009, his intention to remove this flexibility for 2010.

3.      The regulation of rail fares in Scotland, Wales and Liverpool and London Overground are matters for the Scottish Parliament, Welsh Assembly Government, MerseyTravel and Transport for London respectively.

4.      Since 1997 regulated fares have risen by about 5% in real terms while disposable income has increased by over 20%.

5.      The RPI+1% formula does not apply to unregulated fares which are set on a commercial basis by train operators.

From This Is Money:

Rail firms 'hiding' 15% fare increases

Rail passengers are facing inflation-busting fare rises of up to 15% in the New Year, sparking accusations that 'rip-off' increases are being disguised.

Tomorrow annual fare increases come into force which train company chiefs say will see passengers paying an average of 1.1% more for their tickets.

This is largely thanks to a 0.4% fall in the cost of regulated fares - including season tickets, savers and standard day returns - which are capped by the Government.

But passenger groups and rail unions say the average figure masks the full extent of the New Year rises. Some passengers will see rises of up to 15% in unregulated fares, which include most cheap day returns, long distance open, leisure and advance fare tickets.

These prices are set by the train companies themselves, with the average rise being around 5%.

However the TSSA^» (Transport Salaried Staffs' Association - about) rail union said some advance purchase tickets would rise much more. It highlighted a supersaver fare from London to Swindon rising from ^20 to ^23, an increase of 15%.

TSSA general secretary Gerry Doherty said: 'These people have no shame.

'If there is a chance of legally ripping off the passenger they will take it. This is modern highway robbery.'

The RMT^▸ (National Union of Rail, Maritime & Transport Workers) union has described the rises as a 'taxpayer-sponsored ripoff' and said that train companies were guilty of 'spin and gloss' to disguise 'massive fare hikes' on some lines.

There is particular anger that the Association of Train Operating Companies (ATOC^» (Association of Train Operating Companies See - here)) has chosen not to announce how much unregulated fares are rising. ATOC normally gives separate figures for the regulated and unregulated increases.

Regulated fares, which make up around 40% of all fares, will be going down from tomorrow as they are capped according to the formula of Retail Price Index measure plus 1%, based on the July inflation rate.

The recession and deflation meant RPI was minus 1.4 per cent in July, meaning prices must go down by 0.4 per cent.

But details from individual train companies paint a very different picture.

For example Virgin Trains, which operates Glasgow to London services on the West Coast main line, said its unregulated fares were rising by an average of 2.8%.

But some tickets are going up by as much as 6%, including London to Manchester anytime standard returns, from ^247 to ^262.

Anthony Smith, chief executive of rail customer watchdog Passenger Focus said: 'This is a sting in the tail.

'Many unregulated fares will continue to soar above inflation as the average figures will mask steep rises on individual routes.

'We are also concerned that some train operators will tinker with off-peak ticket restrictions, forcing passengers into buying more expensive tickets.'

Liberal Democrat transport spokesman Norman Baker said: 'We all recognise that times are tough but putting rail fares up will not get people back on to the railways.'

ATOC chief executive Michael Roberts defended the presentation of fare changes by saying: 'Not only is the average rise the lowest since privatisation, but it will come in well below the rate of inflation, meaning a real-terms cut in prices for many passengers.'

He said rail travel 'continues to be good value for money'.

[devon_metro]

"Vote for us" 

[Tim]

It depresses me that the Government think that people are so stupid that they will regard a 0.4% price drop when inflation is -1.4% as a fall in price rather than the usual 1% price hike which is in fact what it is. 

It depresses me even more that that in the cas eof many people the Government is right

[Timmer]

What constitutes a 'regulated' fare as I have just looked up ticket prices for Bath to London today and next Monday when fares increase and the only fare that has gone down in price by a whopping 20p is the Super off peak Return.

The Off peak Return remains at ^59 so good to see no increase on that fare. However, the three single fares available - Anytime/Off Peak/Super Off Peak have gone up by between ^3-^4.50 with the Off peak Single seeing the largest rise partially undoing the good deal that these two off peak single fares were for a 'walk up' ticket after the September fares changes. A saving can still be made by mixing and matching these off peak single fares with advance singles if you aren't sure of your travel plans for one leg of your journey. Anytime Return and First class Anytime Returns have gone up by ^5/^6.

Advance tickets still offer great value especially when booking via the FGW^▸ (First Great Western) website as they still discounted at 10%.

[grahame]

My highlighting on this DfT^» (Department for Transport - about) quote

The majority of rail journey fares are regulated by the Government. Increases to most fares are capped at 1% above inflation with the changes implemented in January, based on the previous July's RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context)) figure. Last July's RPI figure was  -1.4%, so most regulated fares will now fall.

Taking London to Swindon (or Chippenham or Bath) as an example, does anyone know what percentage of travellers are on regulared fares?   I would be very surprised if it was over 50% as it appears the Government is claiming.

[Chris from Nailsea]

From the BBC^» (British Broadcasting Corporation - home page):

Anger as train fares rise by 15%

Rail passenger watchdog Passenger Focus has criticised First Great Western for increasing fares, only three months after reducing them.

First Great Western cut some of its single fares by half in September to attract more customers, but now it has put some back up by as much as 15%.

A Plymouth to London off peak single ticket goes up from ^43 to ^49.50.

First Great Western, which operates in Devon and Cornwall, said the cuts had not had the effect it was looking for.

Train operators in the South West are also introducing new limits on when cheaper off-peak tickets can be used.

Anthony Smith, Passenger Focus chief executive, said: "Train companies are effectively forcing passengers into buying more expensive tickets."

[devon_metro]

Still seemingly missing the point that its miles cheaper than in 2008.

[Henry]

 I think I will reserve judgement at the moment.

 The sting in the tail could be the 'new limits on when cheaper off-peak tickets can be used'.

[Btline]

The sting in the tail could be the 'new limits on when cheaper off-peak tickets can be used'.

Indeed, LM^▸ (London Midland - recent franchise) have gone way down in my estimations by introducing Evening Peak restrictions. Yes, the Snow Hill lines are the most overcrowded of Britain's 2nd city, but the answer to to add capacity, not put evening restrictions in, which will discourse leisure travellers and probably lead to cuts due to "not enough customers"!

I could rant for another half ad hour, but I'll spare you.

[Mookiemoo]

First class fares always go up - I dread to think what I'll pay Monday

If this continues, the rises are going to change my business model - I commute because it is slightly cheaper and healthier - train plus my own bed and own food - than a travel inn plus whatever I can forage.  However the differential is getting less and less when you add in daily travel to the station etc.

Its only my (ahem) student rail card that keeps it viable since my travel patterns are too sporadic to use a season.

Another fare increase may well see me staying over during the week and a loyal passengergoing AWOL^▸ (Absent Without Leave)

[Timmer]

First Great Western, which operates in Devon and Cornwall, said the cuts had not had the effect it was looking for.

What were they looking for? Were too many people taking advantage of the good prices these new single fares offered?

[John R]

That was the comment I had from management. Seems the new structure was resulting in too much loss of income. Which is not surprising given that it gave lots of opportunity to travel cheaper than an anytime return on HSS^▸ (High Speed Services).