First may be the losers in their own fares war

[Mojo]

Recently, First Great Western introduced a lower 'FGW Only' fare for SDR, CDR & weekly seasons for many journeys in South Wales where they operate journeys alongside Arriva TW. See: http://www.firstgreatwestern.co.uk/Content.aspx?id=705

As the controller of the fares in this region, Arriva were unable to "compete," by offering lower-priced "walk up" fares 'ATW Only' for the same journeys. However, Arriva have hit back by reducing the 'Any Permitted' fares, to about 10p BELOW the 'FGW Only' fares, making the 'FGW Only' ones totally pointless: http://www.arrivatrainswales.co.uk/ViewContent.aspx?id=2474

This means that customers will now ask for the "old" ticket (now at a reduced price) and FGW will not get 100% of the revenue, but the revenue will be shared using the railway mechanism.

Swansea to Cardiff SDR is now £6.40 ('FGW Only' £6.50), the CDR £4.90 ('FGW Only' £5.00). First operates a coach service between Cardiff & Swansea priced at £6 rtn (see: http://www.firstgroup.com/ukbus/wales/swwales/shuttle/index.php) - so it seems First may have to reduce their coach fares too. Seems First may have scored an own goal and THEY will end up being the losers in the "fares war" THEY started.

 

[Max]

What will be the next move then? Presumably FGW can't further reduce their fares, and even if they do, it will have to be a big drop to compete with the convenience of an any permitted ticket.

 

[Jim]

It is brilliant!

 

[yorkie]

What will be the next move then? Presumably FGW can't further reduce their fares, and even if they do, it will have to be a big drop to compete with the convenience of an any permitted ticket.

I am not sure if they can lower them further right now, until the next fare change - as we're into the period of the latest fares manual. Or can they? Anyone know?

ATW announced this on the very first day of the new fares for 2007.

It's likely that the new FGW fares will simply be obsolete and unused. It would be against ATOC rules for them to be sold unless a customer specifically asked to pay more for the more restrictive ticket. They are not permitted to offer them to customers, under ATOC rules.

 

[Guinness]

Ends up been a passenger benefit at least!

Rare to see price wars like this, perhaps one of the problems with the franchising system!

 

[devon_metro]

SCome on Virgin, offer Paignton-Exeter returns for £1

 

[Bonemaster]

Ends up been a passenger benefit at least!

Rare to see price wars like this, perhaps one of the problems with the franchising system!

Price wars have happened ever since privatisation such as Peterborough - London, Birmingham - London are two notable examples

However it is the first example that I know of where the any operator fare has been reduced as part of the war in retaliation for the introduction of a single operator fare

 

[Mojo]

Gatwick Apt - London is another one. When I flew from Gatwick in the summer, Gat Ex were advertising on the trolleys, Southern on the baggage reclaim, and First Cap Con with a huge poster by departures, all advertising their cheaper operator-only fares or special discounts (or in the case of GatEx, their fast jrny time!)

 

[Bonemaster]

Gatwick Apt - London is another one. When I flew from Gatwick in the summer, Gat Ex were advertising on the trolleys, Southern on the baggage reclaim, and First Cap Con with a huge poster by departures, all advertising their cheaper operator-only fares or special discounts (or in the case of GatEx, their fast jrny time!)

Gatwick is a bit of a special case as when the fares difference started it began with Gatwick Express putting a surcharge on there travel of £2 I think from memory then, Connex and Thameslink started to fight it out

 

[yorkie]

Price wars have happened ever since privatisation such as Peterborough - London,

I think FCC have lost this battle totally. The fare is not actually much less than the 'Any permitted' fare, I used to do it a lot to get to London for around 10am cheaply, but I've decided it's not worth the hassle and I now get GNER advances or just arrive off-peak.

In my experiences of getting the WAGN trains from PBO, there aren't huge numbers on from Peterborough, and they really fill up at places like Huntingdon & St Neots (particularly the fasts). Meanwhile on GNER it's annoying when you get inundated with loads of passengers on cheap day returns (not available from Yorkshire - boo!) packing on to a train from Edinburgh for the last 45 mins of the journey, shunning an empty 317 or 365, then they wonder why they can't get a seat. Hmm...!

If FCC ran more fasts (which there is demand for!), then they could be more competetive, and help reduce overcrowding on GNER.