andrewkeith5
Member
Thanks for confirmation that evouchers don't expire, I'll certainly start using them.
This might be a new thread. But what is going to happen when the franchise is passed on?
Thanks for confirmation that evouchers don't expire, I'll certainly start using them.
probably no more reward points, a deadline by when all points have to be redeemed.
However I'd still expect & hope to have 6 months to actually book a ticket, but that might be wishful thinking.
probably no more reward points, a deadline by when all points have to be redeemed.
However I'd still expect & hope to have 6 months to actually book a ticket, but that might be wishful thinking.
Isn't East Coast being privatised in a different way, through a share sale rather than via the normal franchising method.
East Coast passenger services are currently run under a services agreement between ECML, DOR and the Secretary of State for Transport.
This agreement was put in place to fulfil the Secretary of State’s obligation under section 30 of the Railways Act 1993 to ensure the provision of passenger services where a Franchise Agreement has been terminated and no new Franchise Agreement has been entered into.
Ordinarily when a franchise is awarded, the winning bidder will have formed a company which will operate the franchise and franchise assets (i.e. certain assets needed to run the passenger services) will be transferred to this new franchisee from the existing franchisee.
Such a transfer takes place in accordance with section 12 of the Railways Act 2005 which gives the Secretary of State the power to make a scheme for the transfer of franchise assets from a franchisee to a successor franchisee or to a company owned by the Secretary of State or to specified other persons. This transfer scheme provision is reflected in standard Franchise Agreement provisions which set out the scope of the transfer scheme and oblige the franchisee to transfer certain property to a successor operator at the end of the franchise. This provision provides a power to override certain third party rights to transfer property, rights and liabilities from an existing franchisee to ensure that franchise assets are available to a new operator.
Section 12 is only available where a franchise is in place. The services agreement currently in place is not a Franchise Agreement and so cannot use this mechanism. We will therefore use a share sale as the mechanism to ensure that the assets held by ECML remain available to be used for the provision of East Coast passenger services once a new franchise has been awarded. The share sale will ensure that all assets and liabilities are transferred to the new private sector owner. ECML will continue to run the services and will be a party to a new Franchise Agreement with the Secretary of State.
The share sale has a number of advantages over the usual transfer scheme. It removes the need for protracted mobilisation activities such as the transfer of employees and provides a straightforward mechanism for valuing the assets which will be acquired. It provides continuity and enables the existing operator to continue to run the passenger services rather than having a new operator at the beginning of the franchise.
It's in the invitation to tender, section 8.1
https://www.gov.uk/government/publications/intercity-east-coast-icec-franchise-2013-prospectus
I wonder how many more tickets for travel on other TOCS have been purchased via the EC website since the rewards scheme started? Given EC get 9% of this (I think this is correct), the answer will go a long way to the incoming TOC deciding whether to keep the scheme or not.
I fear the new TOC will assume that all the customers will stay loyal to them and will take their custom for granted, abolish the Rewards scheme and then be surprised (I won't be) when people abandon them and instead book with Southern for the Money Back Guarantee (a policy which EC apparently stubbornly refuse to even consider, according to EC Web Support).I wonder how many more tickets for travel on other TOCS have been purchased via the EC website since the rewards scheme started? Given EC get 9% of this (I think this is correct), the answer will go a long way to the incoming TOC deciding whether to keep the scheme or not.
As a frequent traveller on EC I'm interested to see how Virgin do. I'm not impressed by the scapping of the rewards scheme. It won't drive me off EC, but I may well look at what other ticket sellers offer.
I fear the new TOC will assume that all the customers will stay loyal to them and will take their custom for granted, abolish the Rewards scheme and then be surprised (I won't be) when people abandon them and instead book with Southern for the Money Back Guarantee (a policy which EC apparently stubbornly refuse to even consider, according to EC Web Support).
I've got a reply on Twitter:
Me: @eastcoastuk Is there a deadline for using up East Coast Rewards points before the franchise transfer?
EC: @_charlie123 Hi Gerry. The Rewards Scheme is expected to transfer to the new owner. More details to come at a later point.
The question is how much money are they actually making from just selling tickets? It is all very well getting lots of customers to use your site, but if the cost of the Rewards cancels out the commission earned, then it is not worth the bother from their point of view.
It depends what value you put on the free tickets. Each "free" first class ticket requires a spend of about £450, and I'd imagine most people have spent all £450 of that on East Coast train services.
. I doubt the cost to East Coast of that "free" ticket is £45.
I've got a reply on Twitter:
Me: @eastcoastuk Is there a deadline for using up East Coast Rewards points before the franchise transfer?
EC: @_charlie123 Hi Gerry. The Rewards Scheme is expected to transfer to the new owner. More details to come at a later point.
The marginal cost to East Coast is some drink and food. Willing to guess that's less £10 per first class rewards passenger. And you can only redeem your points on services of East Coast's choosing.
Compare that to the Nectar scheme currently offered by First. East Coast Rewards is better.
The way I took it was that it will transfer but only in that it won't close down at the stroke of midnight when the franchise starts up. I didn't take it to mean that VTEC will keep it for the long haul.