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Railcard boundaries in silly places

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35B

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It's not surprising that if the crooked LNER trail is increasing revenue - anyone can do that with a fares hike on a popular route.
Possibly - but that also depends on the willingness of people to pay more. What LNER shows, and will be seen as such by DfT, is that price rises do increase revenue rather than reducing it. They will therefore be reluctant to conclude that reductions will increase revenue.
But as I have said, railway reorganisation is a flagship policy for the government, therefore they will not want it to be seen as a damp squib. Unless something is done about fares, I fear it will be.
Do you genuinely think that HM Treasury will give a tinkers?
 
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Indigo Soup

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It's fashionable on here to knock the LNER pricing strategy, but the inconvenient fact for those of us who aren't fans is that it appears to be generating more revenue for LNER.
And is therefore an entirely rational course of action for LNER management. Maximising profit (or minimising subsidy, which is the same thing) may not always be the priority for public policy, however.

There's a wider question around the interaction between the £3 bus fare cap, free bus travel for those who are entitled, and rail transport. The effect of the former two is likely to incentivise bus travel at the expense of rail, since the best available offer on the railway is one-third off your fare.

To take an extreme example: if a Scottish pensioner wished to travel from Wick to Stranraer, the absolute minimum they'd pay on the train is £38.28 - provided the lowest fare was available and they held a railcard. The Anytime fare without a railcard is £135.10.On the bus, it would only set them back the relevant booking fees. It doesn't take too much imagination to see which would be chosen by most people.

Now, that's a deliberately extreme example of what must be close to the longest journey one can make on a single bus pass in the UK. But there are surely a lot of less-extreme journeys where indirect subsidies to bus operators result in people choosing that mode in preference to a train. And that's something that can only be tackled with joined-up public policy around the transport system.
 

yorksrob

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Possibly - but that also depends on the willingness of people to pay more. What LNER shows, and will be seen as such by DfT, is that price rises do increase revenue rather than reducing it. They will therefore be reluctant to conclude that reductions will increase revenue.

Do you genuinely think that HM Treasury will give a tinkers?

Well, that's always a good question :lol:

HM Treasury does often seem like a Government within a Government. That said, if a flagship policy was being damaged by Treasury intransigence, I would expect the PM's people to smack a few Treasury heads together. This is a Government that appears to need good news stories.

Price rises can reduce revenue if you price enough people off, price cuts can increase it if you attract enough.

As I've said previously, Governments have been willing to lose revenue for transport benefits.
 

modernrail

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The solution is to abolish the Network Railcard boundary altogether and have a true Network wide railcard that every other sensible developed country seems to manage, but the Establishment here seem unable to countenance.
Yes, I have always wondered as a northerner down south what is going on with the Network Railcard, the condition of entry of which seems to be being alive and able to board trains in the SE.

Why did Network SE go for a railcard with boundary rather than just dropping the off-peak fare, which is effectively what it does.
 

yorksrob

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Yes, I have always wondered as a northerner down south what is going on with the Network Railcard, the condition of entry of which seems to be being alive and able to board trains in the SE.

Why did Network SE go for a railcard with boundary rather than just dropping the off-peak fare, which is effectively what it does.

You get the revenue from the cost of the card plus the impulse to make the most of your investment in the railcard. Good marketing really.
 

modernrail

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You get the revenue from the cost of the card plus the impulse to make the most of your investment in the railcard. Good marketing really.
The revenue could have been covered by just not dropping the fare by quite as much as the railcard discount? That would probably be only a tiny difference of spread across all fares?

How do they know cheaper standard off-peak fares would not generate more off-peak usage in itself, without needing the barrier of investing the card?

To be honest I have always assumed it has ended up being a rare passenger friendly measure that somehow survived privatisation but they don’t want to shout about too much. Most people I know don’t have a clue it exists.
 

yorksrob

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The revenue could have been covered by just not dropping the fare by quite as much as the railcard discount? That would probably be only a tiny difference of spread across all fares?

How do they know cheaper standard off-peak fares would not generate more off-peak usage in itself, without needing the barrier of investing the card?

To be honest I have always assumed it has ended up being a rare passenger friendly measure that somehow survived privatisation but they don’t want to shout about too much. Most people I know don’t have a clue it exists.

I guess it's the same reason that supermarkets have those loyalty card prices rather than just having lower prices to begin with.
 

Haywain

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that's a deliberately extreme example of what must be close to the longest journey one can make on a single bus pass in the UK.
Apart from being almost 200 miles shorter than Penzance to Berwick-upon-Tweed, which is entirely within the validity of an English bus pass.
 

modernrail

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I guess it's the same reason that supermarkets have those loyalty card prices rather than just having lower prices to begin with.
I can see the logic of that more though because of the highly competitive nature of the sector. Try and book somebody into just using your supermarket.
 

RT4038

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To take an extreme example: if a Scottish pensioner wished to travel from Wick to Stranraer, the absolute minimum they'd pay on the train is £38.28 - provided the lowest fare was available and they held a railcard. The Anytime fare without a railcard is £135.10.On the bus, it would only set them back the relevant booking fees. It doesn't take too much imagination to see which would be chosen by most people.

Now, that's a deliberately extreme example of what must be close to the longest journey one can make on a single bus pass in the UK. But there are surely a lot of less-extreme journeys where indirect subsidies to bus operators result in people choosing that mode in preference to a train. And that's something that can only be tackled with joined-up public policy around the transport system.
It is a bit of a silly extreme example, and I am not sure exactly what this proves? The number of passengers going from Wick to Stranraer must be very small indeed. Vanishingly small. People do not generally travel such distances, with such changes, by bus. I cannot imagine that those very few who make such a journey would go by bus. Only a minority of the population are motivated by saving money at every turn, and those travelling from Wick to Stranraer are hardly statistically reliable to base a theory on.

In England there is not the network of long distance bus-like coach services as in Scotland. I think very few ENCTS holders make long convoluted bus journeys in order to save money over the train. Between adjacent or near adjacent towns - quite likely [but there will be other factors at play such as convenience of bus stops over railway stations]; any longer journeys the numbers diminish quite rapidly as the number of changes of vehicle increases.

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Apart from being almost 200 miles shorter than Penzance to Berwick-upon-Tweed, which is entirely within the validity of an English bus pass.
Entirely within the validity, but not within one day's journey, so intermediate accommodation costs have to be factored into the cost of making the trip. It is certainly going to be niche for most pass holders.
 

35B

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Well, that's always a good question :lol:

HM Treasury does often seem like a Government within a Government. That said, if a flagship policy was being damaged by Treasury intransigence, I would expect the PM's people to smack a few Treasury heads together. This is a Government that appears to need good news stories.

Price rises can reduce revenue if you price enough people off, price cuts can increase it if you attract enough.

As I've said previously, Governments have been willing to lose revenue for transport benefits.
And, so long as we are clear about the difference between political and commercial arguments, that's fine - my issue is when a political choice is justified on commercial grounds that simply don't stack up.
 

yorksrob

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And, so long as we are clear about the difference between political and commercial arguments, that's fine - my issue is when a political choice is justified on commercial grounds that simply don't stack up.

Oh yes, admittedly this one is a bit of a grey area as there's some disagreement as to whether such a railcard will likely be net positive or negative, or by how much. Either way, I think that such an innovation is politically desirable.
 

modernrail

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I wonder if the approach has ever been taken of setting a target revenue budget for each TOC (on the basis of a particular approach to ticketing) and then inviting the TOC to suggest ‘innovation’ to increase revenue over the budget. With each suggestion could come an impact study of the winners and losers.

Network Railcard would seem to me to be an innovation that might still stand up, maybe even on an extended basis across the country, but that needs modelling out. No real losers if revenue neutral or better. Lots of winners.

LNER’s approach - clear losers.
 

yorksrob

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Network Railcard would seem to me to be an innovation that might still stand up, maybe even on an extended basis across the country, but that needs modelling out. No real losers if revenue neutral or better. Lots of winners.

LNER’s approach - clear losers.

Agree. The factors still generating revenue in the NSE area would still generate it everywhere else.

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It was called franchising.

Well, local offers can have their place, however they don't have the reach of a National product in terms of marketing and generating public interest.

To be fair to the franchising era, it did produce the two together railcard, which was a good product that could be marketed everywhere.

A national railcard would be a great thing that could hopefully be publicised everywhere, especially if the Governments in Wales and Scotland could be persuaded to join in (why not even N Ireland if they want - just because they have a separate railway system, doesn't mean that a reciprocal arrangement couldn't be made).
 
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modernrail

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It was called franchising.
I thought most things were pretty much set in stone within a franchise contract. So, for instance, if GNER had approached the DfT part way through the term of the franchise and said, we would like to get rid of flexible off-peak return tickets and replace them with a ticket that only allows flex one train either side of the booked one, they would have been told - no.

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Agree. The factors still generating revenue in the NSE area would still generate it everywhere else.

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Well, local offers can have their place, however they don't have the reach of a National product in terms of marketing and generating public interest.

To be fair to the franchising era, it did produce the two together railcard, which was a good product that could be marketed everywhere.

A national railcard would be a great thing that could hopefully be publicised everywhere, especially if the Governments in Wales and Scotland could be persuaded to join in (why not even N Ireland if they want - just because they have a separate railway system, doesn't mean that a reciprocal arrangement couldn't be made).
The only thing against that is I suspect per carriage loadings in the regions are probably higher throughout the day than in NSE land - as demand for available seats seems to be more even throughout the day than in the SE where it is massively underutilised outside peaks. I would still like to see it though!
 

Haywain

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To be fair to the franchising era, it did produce the two together railcard,
And the 26-30 Railcard, Veterans Railcard, 16-17 Saver.

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I thought most things were pretty much set in stone within a franchise contract. So, for instance, if GNER had approached the DfT part way through the term of the franchise and said, we would like to get rid of flexible off-peak return tickets and replace them with a ticket that only allows flex one train either side of the booked one, they would have been told - no.
Not really. They were free to maximise revenue within the framework of regulated fares. This is where the aggressive marketing of Advance fares came from, and the extreme level of Anytime fares on the West Coast. And the logical extension of that freedom is removal of regulated fares as we see now on the East Coast route.
 

yorksrob

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I thought most things were pretty much set in stone within a franchise contract. So, for instance, if GNER had approached the DfT part way through the term of the franchise and said, we would like to get rid of flexible off-peak return tickets and replace them with a ticket that only allows flex one train either side of the booked one, they would have been told - no.

== Doublepost prevention - post automatically merged: ==


The only thing against that is I suspect per carriage loadings in the regions are probably higher throughout the day than in NSE land - as demand for available seats seems to be more even throughout the day than in the SE where it is massively underutilised outside peaks. I would still like to see it though!

This is definitely a point, although I will counter that there have always been busier and quieter times on the railway.

Since thought of a national railcard was espoused in the noughties we've had four and three carriage trains on TPE replaced by six, two carriage diesels on bits of Northern replaced by four carriage electrics etc. Capacity is creeping up, although not as fast as we might like.

And the 26-30 Railcard, Veterans Railcard, 16-17 Saver.

Fair point, although when it gets to the point where it's easier to describe who's not eligible for a railcard than who is, it's probably time to bite the bullet and go for a national one.
 

modernrail

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This is definitely a point, although I will counter that there have always been busier and quieter times on the railway.

Since thought of a national railcard was espoused in the noughties we've had four and three carriage trains on TPE replaced by six, two carriage diesels on bits of Northern replaced by four carriage electrics etc. Capacity is creeping up, although not as fast as we might like.



Fair point, although when it gets to the point where it's easier to describe who's not eligible for a railcard than who is, it's probably time to bite the bullet and go for a national one.
Yes it does feel a bit like that doesn’t it.

Otherwise, we should probably also have a:
- person travelling on their own but not in the SE railcard
- working parents not travelling with children but skint because of hideous mortgage repayment and childcare costs railcard
etc.
- person unfortunate enough to be covered by any of the other railcards railcard.
 

35B

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I wonder if the approach has ever been taken of setting a target revenue budget for each TOC (on the basis of a particular approach to ticketing) and then inviting the TOC to suggest ‘innovation’ to increase revenue over the budget. With each suggestion could come an impact study of the winners and losers.

Network Railcard would seem to me to be an innovation that might still stand up, maybe even on an extended basis across the country, but that needs modelling out. No real losers if revenue neutral or better. Lots of winners.

LNER’s approach - clear losers.
The problem is that the LNER approach, measured in terms of revenue, appears to be a winner. Whatever we think of it
 

modernrail

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And the 26-30 Railcard, Veterans Railcard, 16-17 Saver.

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Not really. They were free to maximise revenue within the framework of regulated fares. This is where the aggressive marketing of Advance fares came from, and the extreme level of Anytime fares on the West Coast. And the logical extension of that freedom is removal of regulated fares as we see now on the East Coast route.
It is not that logical, because the other moves were to increase choice. LNER’s is to restrict choice. It is fundamentally different, basically the opposite.

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The problem is that the LNER approach, measured in terms of revenue, appears to be a winner. Whatever we think of it
Are there figures that separate this out from other growth? It would be interesting to see what revenue increases they are attributing to which factors.

That is not a problem either, it is just something else to be considered as part of the debate. It is a trial after all and I am sure passengers views are being carefully considered ;)
 

yorksrob

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It is not that logical, because the other moves were to increase choice. LNER’s is to restrict choice. It is fundamentally different, basically the opposite.

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Are there figures that separate this out from other growth? It would be interesting to see what revenue increases they are attributing to which factors.

That is not a problem either, it is just something else to be considered as part of the debate. It is a trial after all and I am sure passengers views are being carefully considered ;)

Yes, it's a trial ;)

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Yes it does feel a bit like that doesn’t it.

Otherwise, we should probably also have a:
- person travelling on their own but not in the SE railcard
- working parents not travelling with children but skint because of hideous mortgage repayment and childcare costs railcard
etc.
- person unfortunate enough to be covered by any of the other railcards railcard.

Yes, I'm sure I'll be the last one standing not eligible for one :lol:
 

Indigo Soup

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Apart from being almost 200 miles shorter than Penzance to Berwick-upon-Tweed, which is entirely within the validity of an English bus pass.
I was under the impression that they were restricted to the holder's local authority, though perhaps this has changed at some point?
It is a bit of a silly extreme example, and I am not sure exactly what this proves? The number of passengers going from Wick to Stranraer must be very small indeed. Vanishingly small. People do not generally travel such distances, with such changes, by bus. I cannot imagine that those very few who make such a journey would go by bus. Only a minority of the population are motivated by saving money at every turn, and those travelling from Wick to Stranraer are hardly statistically reliable to base a theory on.
Zero, in fact, by rail - for the last three years. And probably also zero by bus.

If you want a more realistic example: Selby to York. The bus fare is, of course, £3 - or zero if you have a bus pass. It takes just under an hour, and runs every 15 minutes. The train fare is £10.10 for an Anytime ticket. Potentially £2.50 if you happen to get the cheapest Advance available from Northern. It takes 23 minutes, and runs once an hour.

The point isn't any particular journey. It's that at a system level, public policy decisions have been made to limit the cost of bus travel. Those decisions have not been made for rail travel. And, therefore, the cost-sensitive traveller is being nudged in the direction of bus travel.

Which might be fine. But it's a position that ought to be arrived at consciously.
 

Haywain

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It is not that logical, because the other moves were to increase choice.
Whether one likes it or not, it is a logical extension of maximising revenue. You may feel it restricts choice, but that a different matter.
 

JamesRowden

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Perhaps the universal national railcard could:
  • Cost £100 a year (so that one has to spend £300 per year before getting a saving).
  • Be able to take up to 2 non-specified people on the journey with the discount like the network railcard (to make the railway more cost competitive for group travel compared with driving).
This would provide a cheaper in bulk price like other products/services can be bought (like car travel effectively does for transport with the cost of buying/maintaining/insuring the car, and season tickets do for commuting). So to encourage people to spend money on rail travel rather than getting/using a car, or just encouraging more journeys in general.
 
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yorksrob

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Perhaps the universal national railcard could:
  • Cost £100 a year (so that one has to spend £300 per year before getting a saving).
  • Be able to take up to 2 non-specified people on the journey with the discount like the network railcard (to make the railway more cost competitive for group travel compared with driving).
This would provide a cheaper in bulk price like other products/services can be bought (like car travel effectively does for transport with the cost of buying/maintaining/insuring the car, and season tickets do for commuting). So to encourage people to spend money on rail travel rather than getting/using a car, or just encouraging more journeys in general.

That sounds like a good idea to me.
 

TUC

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I was under the impression that they were restricted to the holder's local authority, though perhaps this has changed at some point?
It changed in 2008 in England with the introduction of the National Concessionary Travel Scheme.

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Perhaps the universal national railcard could:
  • Cost £100 a year (so that one has to spend £300 per year before getting a saving).
  • Be able to take up to 2 non-specified people on the journey with the discount like the network railcard (to make the railway more cost competitive for group travel compared with driving).
This would provide a cheaper in bulk price like other products/services can be bought (like car travel effectively does for transport with the cost of buying/maintaining/insuring the car, and season tickets do for commuting). So to encourage people to spend money on rail travel rather than getting/using a car, or just encouraging more journeys in general.
The problem is that most people most of the time would only make local/regional rail journeys and so £100 would appear an excessive cost, especially when compared to the Network Railcard price.
 
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