Not a view I've ever subscribed to when it comes to costsThose first three are fully private sector operators. The last one is a publicly owned company. Interesting given the popular view that nationalising things turns them into cuddly benevolent organisations that exist only for the benefit of the people.
Sadly no sensible discussion about cost is really possible on these threads because you're immediately accused of all sorts of nonsense about being anti-union.
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As I've already explained, because if you make pricing more granular, you're more exposed to competition on price at the bottom of the market. More granular pricing is great if you're lean on costs and have commercial freedom to be selective about what and when to provide. LNER are very bloated on cost base (like nearly all British TOCs) and have very limited latitude to exit unremuneraritive markets (see the huge political opposition to their wish to withdraw services to Glasgow Central and Motherwell, despite these costing a lot of money to run and carrying barely anyone). LNER's 2% discount and endless targeted cashback deals are an attempt to get this back, but these don't seem to be working very well. They're far less targeted than offering a return that costs less than singles each way.I don't really see what this has got to do with the point being discussed - which was whether single leg pricing is likely to result in a net loss of passengers.
Don't get me wrong, I believe in keeping the public service obligation elements of the service, and I do actually oppose withdrawing the Glasgow Central services, but I also take the view appropriate subsidy from public funds should be provided, and it isn't being, and unit cost should come down long term even if that means some difficult trade-offs.
There's a very good reason why GWR and GC set their singles at 60 - 70% of their return prices, and why Avanti West Coast cut theirs to 70%ish of their return prices. The train service is rarely in a position to exploit being the most competitive on price, so some form of loyalty binding is more important.
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Of course, not if you're Lumo you don'tRail doesn't, if you want to flog stuff you have to pay someone extra to do so.
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I know we don't need more examples of money-grabbing, but today and yesterday there's been no availability for Advance tickets on the 1900 London Kings Cross to Edinburgh. As a result the price of this service has increased from £87 three weeks ago to £193.90 today, for those making a booking last night or this morning, as is the common thing to want to do. There's the overnight 123% price rise that certain people claimed wouldn't happen.How “cuddly” an organisation is depends on its management and its ownership.
FWIW I don’t think all of this does come from the government. David Horne was the grand master of price gouging when LNER was VTEC. If there was a service standard he could trash he happily trashed it. If there was a price to be gouged, he gouged it.
Horne should have been shoved out along with Brian Souter. He had trashed everything that EastCoast had built up under Heidi Mottram (who as a water company CEO clearly has a strong business brain too).
But you can see why the current government would like a senior manager with a proven track record of slashing quality and ramping up prices.
The benefit of public ownership is that there is accountability at the ballot box for such behaviour- at least in theory. Not that I expect Labour to be much better.
Of course, just to make it as complicated as possible, if you buy the 70 Min Advance for the 1830 you can use that on the 1900, saving £40. It's difficult to see how they could have messed all this up any worse.
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