‘Rail miles’ rewards would rescue train operators, says think tank

TRAIN operators should introduce “rail miles” loyalty schemes similar to Air Miles to increase passenger numbers, a think tank co-founded by Margaret Thatcher has suggested.

The scrapping of peak-price tickets, among other measures to increase travel by rail, are also needed, it added.

Peak-time passenger numbers have plummeted 85 per cent since before the pandemic, according to the Centre for Policy Studies. Commuter journeys are at 45 per cent of pre-pandemic levels.

In a report published yesterday, the think tank warned of a “severe risk” that the industry will suffer as commuters abandon trains and use them only for leisure travel. Abolishing peak pricing would boost levels of commuting and business travel, it said, adding that rail had “lost its monopoly [on] peak travel to Zoom and home working”.

The think tank, which was founded in 1974 by Keith Joseph and Margaret Thatcher, added that the ticketing system should be simplified for passengers because the current one creates “cognitive overload”. Its report identified 2,700 ticket types, with more than 600 restrictions, and 1,000 ticket names. Tony Lodge, of the Centre for Policy Studies, said: “Passenger expectations have changed... and the industry must change with them. Choosing to travel by train is no longer a necessary part of working life.

“Today, the railways are oversupplying a commuter market that has not come back and … under-supplying growing leisure demand. Timetables, rolling stock provision and the retail offer must reflect this change in consumer demand and help it to grow.”

London North Eastern Railway already offers a “rail mile” loyalty scheme, LNER Perks, which has around 330,000 users. The scheme offers 2 per cent back in credit for every £1 its members spend, and a chance to win prizes in monthly competitions.

Great Western Railway was part of a scheme that awarded passengers two Nectar points for every pound spent on train tickets online. But the partnership ended in March and a spokesman for the operator said it had no plans to reintroduce it. Avanti West Coast also has a Nectar partnership that ends this month but the company would not comment on whether a new loyalty scheme would replace it.

Mr Lodge added: “The Government has the opportunity, through the new Great British Railways body, to radically overhaul the current model to make sure that it is fit for purpose and able to meet modern passenger demands.

“Frankly, if the Government doesn’t implement these reforms, there is no certainty that rail will have a future and taxpayers will inevitably be forced to foot the bill for its decline.”