ORR market study into ticket machines and gates
The Office of Rail and Road (ORR) began a market study into the supply of ticket vending machines and automatic ticket gates on March 14.
It follows investigations into the wider markets for ticketing equipment and systems, in which the ORR identified concerns that high concentration and a lack of effective competition could be “causing higher prices, reductions in quality and stifling innovation of ticket vending machines and automatic ticket gates”.
The ORR’s investigation will focus on the concentration and market shares in the ticket machine and automatic ticket gate markets, outcomes for customers (whether train operators, Network Rail or passengers), and understanding why the market works as it does.
The investigation will not focus on third-party ticket distribution or the supply of plastic cards and ‘orange card’ printers. However, it will examine whether the award of large aggregated contracts with long durations for retail equipment could be restricting or distorting competition in the supply chain, and whether accreditation processes could be causing “a disproportionate barrier to entry”.
In 2016-17, the ORR says sales through ticket machines totalled £2 billion, or 20.2% of total passenger revenues.
ORR Director of Legal and Competition Juliet Lazarus said: “This study will thoroughly review the market to learn whether or not it is providing the best service for those who rely on it.
“We want to hear from individuals and companies about their experiences, and we will not hesitate to take appropriate action should the study show that it is necessary.”