I only have experience of the last three years (2013-2015) of the operation when it was run by First Group as part of the Scotrail franchise, but (from what I remember) I don't seem to recall things were that bad. I first became a regular user of the sleeper in this period and I must say that my experiences were very positive. Perhaps I was just lucky. Whilst First Group did very little to market the service (meaning that their much praised 'Bargain Berths' were not as widely known about as they should have been) and there was a strong sense that their management did not care very much about it (comparatively little was done in the way of refurbishment of the existing stock, for instance), the on-train staff were always excellent and the travelling experience was great. I was very impressed with the service's punctuality, the lounge car food was very nice (if basic) and the fares were very affordable (particularly in standard). The whole experience was fantastic- having haggis for dinner leaving London and waking up to the amazing Highland scenery- and did not need fancy gimmicks to make it the fantastic journey that it was (and always will be). Loadings could be variable (certainly Monday and Wednesday nights on the northbound Highlander in November, January and February could be very quiet, but Friday nights were very busy all year round, with lots of very interesting regular travellers) but one thing I never remember much was customers complaining (as is unfortunately all too common a feature of the current operation, though some of the criticisms are perhaps unfair). Plenty of foreign tourists used to travel to Inverness and Fort William on the Scotrail sleeper throughout the year and genuinely seemed to enjoy the experience, despite the fairly basic facilities offered by the Mk2s and Mk3s. First Group's marketing was such that (I suspect) many passengers' expectations were not huge, with the result that most travellers ended up being pleasantly surprised by the experience. The Mk2s and Mk3s were showing their age, and the reliability of the Mk2s was decidedly hit-and-miss even then. But overall it seemed a very good, user-friendly service which delivered what it advertised. I would not say that they ran it any better than Serco did; in fact, as the Mk2s and Mk3s are still running, not much has materially changed on the Highlander since Serco took over, and it remains my favourite journey (and always will do, though I will have to save a lot more money to travel on it from now on). I think that one positive which Serco could take from First Scotrail was the fact that they did not give their prospective travellers sky-high expectations which they knew that they could not deliver.