Train fares: limited scope for market pricing

18 June 2009

It took the intervention of Stagecoach chief executive Brian Souter to get the Megatrain budget travel initiative off the ground. Civil servants had sought to block the project on the grounds that fares would only be available over the internet and not at stations

While the overambitious franchise bids made by some train operators have undoubtedly contributed to the severity of fare increases and surcharges passengers are facing, government policy has also played a significant part by limiting operators’ freedom to promote their services.

The Department for Transport’s reluctance to renegotiate the Ticketing and Settlement Agreement regulations has severely constrained operators’ ability to freely promote rail travel to non-users and...

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Train fares: limited scope for market pricing

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