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Trainline to be investigated for not including fees in prices

MrJeeves

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A bit confused. Why would a frequent Trainline user - who is no doubt aware of the booking fees - be ecstatic at this?
Presumably because everyone will now get their booking fees that they had been charged refunded to them for the period between the DMCC Act going into force and Trainline sorting out their drip pricing.
 
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35B

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The fees aren't the issue - perfectly allowed to add as many fees as they like, at whatever rate they think is commercially viable. This isn't what the investigation is looking at, and potentially, the fees could end up higher if action does result to offset any remediation.
Potentially, and i well remember a former colleague who worked on the launch of Trainline back in 1998 telling the tale of just how many unforeseen fulfilment costs there were.

However, part of the issue with drip pricing is that it distorts perceptions of price. That means that fees that customers swallow at the end of the purchase process may well be unacceptable if stuck up front. That is also a major part of why retailers use it.
 

saismee

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However, part of the issue with drip pricing is that it distorts perceptions of price. That means that fees that customers swallow at the end of the purchase process may well be unacceptable if stuck up front. That is also a major part of why retailers use it.
It means that 59p (?) fee is guaranteed on every single ticket sale. People aren't going to get all the way through planning their trip to then cancel it over 59p. Then they'll use it again and again because it was easy.

I've heard someone suggest to their friend to buy their ticket on the train because it's cheaper than Trainline (3.00 pounds vs 3.59 pounds). It is a pay-train service but essentially encouraging pay when challenged is not ideal.
 

styles

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It means that 59p (?) fee is guaranteed on every single ticket sale. People aren't going to get all the way through planning their trip to then cancel it over 59p. Then they'll use it again and again because it was easy.

I've heard someone suggest to their friend to buy their ticket on the train because it's cheaper than Trainline (3.00 pounds vs 3.59 pounds). It is a pay-train service but essentially encouraging pay when challenged is not ideal.
Interesting, given that Trainline don't charge a fee for same-day tickets purchased on their app, only their website.
 

bigmanaiq

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A bit confused. Why would a frequent Trainline user - who is no doubt aware of the booking fees - be ecstatic at this? Why do you use them so frequently if this bothers you so much?
I never said I had an issue with the booking fees themselves. The fact they’re hidden until the very last moment so you have no idea how much you’re actually paying is extremely frustrating. I continue to use the app for ease of use since my railcard is stored on there and I don’t have to flip between apps every time my ticket gets checked
 

35B

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It means that 59p (?) fee is guaranteed on every single ticket sale. People aren't going to get all the way through planning their trip to then cancel it over 59p. Then they'll use it again and again because it was easy.
Precisely the issue with drip pricing. It gets the vendor both the business and the fees when if they declared it openly at the start of the payment, they are likely to convert fewer enquiries into business.
 

styles

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I never said I had an issue with the booking fees themselves. The fact they’re hidden until the very last moment so you have no idea how much you’re actually paying is extremely frustrating. I continue to use the app for ease of use since my railcard is stored on there and I don’t have to flip between apps every time my ticket gets checked
Not that I particularly like defending Trainline, but they're not hidden until the last moment.

On the website they're shown on the first pricing results screen where you select your fare.

On the app, they appear on the page immediately after selecting your fare. CMA's rightful investigation will be because on the app they don't appear at the point of selecting the fare. Trainline should absolutely be taken to task for this, but it's on the second view you'll come across when searching, not the last moment. Seatfrog is similar from memory, and they should also be held to account.
 

Benjwri

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It means that 59p (?) fee is guaranteed on every single ticket sale. People aren't going to get all the way through planning their trip to then cancel it over 59p. Then they'll use it again and again because it was easy.
No, but lots of people know of a few retailers and will get them up on the journey selection screen to see which is cheaper, particularly on high value long distance journeys. Once they have chosen Trainline they are unlikely to go back if their journey cost jumps. The fee is also not predictable and can be as much has £2.79.
Are you prepared to defend that allegation in the libel courts?
Who is going to take them to court for libel? They didn’t even say who was allegedly encouraging it. Trainline or the friend, the statement that the idea of the booking fee disappearing when you’re on the trains encourages buying after you board is true. No one said it was trainline’s fault.
 

dk1

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As someone who doesn’t have to purchase rail tickets could somebody please explain why people buy from Trainline who charge a booking fee rather than directly from train operators who don’t? I’ve never really understood.
 

Statto

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As someone who doesn’t have to purchase rail tickets could somebody please explain why people buy from Trainline who charge a booking fee rather than directly from train operators who don’t? I’ve never really understood.

Marketing, people think buying from the Trainline is cheaper than buying direct from a TOC even when the booking fee is included in the price, when it isn't.
 

pokemonsuper9

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As someone who doesn’t have to purchase rail tickets could somebody please explain why people buy from Trainline who charge a booking fee rather than directly from train operators who don’t? I’ve never really understood.
Trainline have a big marketing budget, do split tickets (not as well as trainsplit do), and seem to have managed to created a myth that the TOC operators only sell their tickets (not true in the slightest).
 

dk1

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Marketing, people think buying from the Trainline is cheaper than buying direct from a TOC even when the booking fee is included in the price, when it isn't.
So odd isn’t it? I’ve asked people including family and they seem oblivious or just say the app is on my phone.
 

WelshBluebird

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As someone who doesn’t have to purchase rail tickets could somebody please explain why people buy from Trainline who charge a booking fee rather than directly from train operators who don’t? I’ve never really understood.
They do not charge a booking fee for on the day etickets.

They were also one of the first third party retailers to offer railcards and were the first as far as I am aware to integrate the railcard with the ticketing to allow a quick "show railcard" button on the ticket itself which is genuinely handy.
I assume others have copied this approach mind you since!
 

dk1

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They do not charge a booking fee for on the day etickets.

They were also one of the first third party retailers to offer railcards and were the first as far as I am aware to integrate the railcard with the ticketing to allow a quick "show railcard" button on the ticket itself which is genuinely handy.
I assume others have copied this approach mind you since!
Thanks.
 

Alexd

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I use Trainpal, which doesn't normally apply a booking fee, the exception is that on the website only a small split ticketing fee may sometimes be charged.
There are no booking charges when booked through the app
 

riceuten

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One of the numerous other reasons I loathe Trainline is the fact that they seem to have full spectrum domination - like 118 118 did for Directory Enquiries. Everybody I know uses them due to brand recognition, not quality of service.

I weaned one work colleague off them, and he is now positively evangelical about train splitting, using Trainpal/Trainsplit to suss out the possibilities and then individual train companies to book the tickets on. Reckons it's saved him hundreds.
 

dk1

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Trainlines share price initially dropped 9% earlier in the week but appears to have stabilised somewhat.
 

alistairlees

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Trainlines share price initially dropped 9% earlier in the week but appears to have stabilised somewhat.
It's actually down from 242p to 197.5p, which is about 18.5%. At one point it had dropped almost 25%.
 

Hadders

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Like them or loathe them Trainline has been very successful. Many people believe they are the only webite or app where you can buy train tickets.

They do have a very user friendly interface, liked by many people.
 

JamesT

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An investigation by the ORR is unrelated to an investigation by the CMA.
This is true. But it would seem unlikely that having satisfied one regulator in regards pricing transparency, another one would take the opposite view.
 

yorkie

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This is true. But it would seem unlikely that having satisfied one regulator in regards pricing transparency, another one would take the opposite view.
I would generally tend to agree, however the ORR has shown its incomptentence - and utter contempt for rail passengers - on many occasions, and their judgement is highly questionable. Here is an opportunity for them to redeem themselves to some small extent and start to restore their appalling reputation.
 

yorkie

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Oh yeah. My bad, not sure what I was looking at there. Might be worth a punt.
Is that because you think they will not have a judgement made against them? Or that you're confident they'll win a lucrative contract to be the retailer of choice for GBR?

Personally, I would be saying that neither outcome should be at all likely, and I'd be wanting to dump any shares sharpish, however given the (lack of) competence of the parties involved, you could actually be right.

I don't think I'd want to hold shares in such a company out of principle, though.
 

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