Price of single tickets halved in rail overhaul
Government-run operator to trial new train ticketing system ahead of potential wider roll-out
THE cost of train tickets is set to be based on the level of demand in a government trial of “surge pricing”.
Rather than the traditional fixedprice ticketing system, with peak and off-peak windows, a new “airline-style” system with variable prices is set to be introduced on the government-run LNER line, ahead of a potentially wider roll-out.
The plan, which will be revealed in a speech by Mark Harper, the Transport Secretary, today, is part of a major overhaul that will also see the price of single tickets on many lines halved, and a payas-you go system introduced for commuters travelling in the South East.
Surge or demand pricing, also known as dynamic pricing, is used by tech giants such as Amazon and Uber to set prices on an almost minute-by-minute basis using algorithms, based on factors including demand. In times of high demand, the price “surges”, which could mean the most popular services are more expensive.
It has become particularly popular with the airline industry.
Mr Harper will unveil the plans at the annual George Bradshaw address this evening, where he will say: “The industry’s road to recovery after Covid has been tough, with reform badly needed to win back lost passenger revenue while putting customers first. Today’s announcement is the latest example of this government taking bold decisions and getting on with the job.”
The Transport Secretary will also confirm that single fare prices will be slashed on the majority of journeys as part of a major overhaul that will end the practice of single tickets costing almost as much as a return.
Currently journeys such as the one between London and Durham can see off-peak single fares cost just £1 less than a return fare. Under the reforms, oneway fares like this will be almost halved.
The Sunday Telegraph revealed this weekend that Mr Harper was planning to scrap return fares and roll-out “singleleg pricing”. In his speech today, he will guarantee that single fares will never cost more than half the cost of a return.
This will come as a relief to passenger bodies, who welcomed the introduction of single-leg pricing but told The Daily
it would only work if single fares were not made more expensive as a result.
Passengers travelling across the South East will also benefit from the roll-out of a pay-as-you-go ticketing system, which will allow people to make contactless payments across different operators.
The overhaul comes after years of campaigning by groups to try and simplify the rail ticketing landscape, which has an estimated 55million different fares across the network.
Mr Harper will also reveal more details on how Great British Railways, the new central body created to oversee the management of the network, will work alongside the private sector.
At the weekend politicians raised concerns the new GBR could throttle the role of the private sector.
Mr Harper will say: “Growing the economy is rightly one of the Prime Minister’s top five priorities, and the measures I announce today will unleash more competition, innovation and growth in an important sector of our economy.”