LNW-GW Joint
Veteran Member
Having read through the RDG document, I think this is the guts of it (p53):
The paragraph on northern fares is especially interesting, drawing a distinction between "Northern"/PTE fares and those more likely to be operated by TPE.
This feels like premium pricing for fast services (or discounts for stoppers).
The paragraph on northern fares is especially interesting, drawing a distinction between "Northern"/PTE fares and those more likely to be operated by TPE.
This feels like premium pricing for fast services (or discounts for stoppers).
Rebalancing fares: options for governments
Our proposals centre on the principle that customers should only pay for the travel they need and the system is designed to give them the best value fare.
Alongside the introduction of single-leg pricing and with ‘pay-as-you go’ available for many journeys, changes in regulation provide the means to rebalance
fares to better reflect the experience of customers.
If the overall average fare is to remain unchanged, any reduction in fares in one area is likely to require an increase in fares elsewhere.
Initial analysis by KPMG, reflecting this revenue neutrality assumption, suggests that:
• In long-distance markets, some travelling in the core of the Peak and the core of the Off-Peak could see their fares go down, while those in the shoulder Peak might
see marginal average fare increases.
The overall aim though is to enable customers to travel at a time that suits them with more even pricing.
• In commuter markets, customers with more variable demand as well as those able to mix-and-match Peak and Off-Peak tickets could see fare reductions, with
those continuing to travel in Peak periods seeing no change.
These adjustments mean commuter markets may also, in some cases, see marginal fare rises for those travelling Off-Peak, although the implementation of price caps at the 7-day Season Ticket price would provide additional protection.
However, analysis indicates that the benefits to customers of changes in the long-distance market could result in growth in demand by up to 6.5% as well as reducing
crowding by spreading demand more evenly across capacity.
This would in turn give governments options to use the increased revenue generated from the additional demand to off-set any rises in the commuter
market, reinvest in lower fares in long-distance markets, or re-invest in to the network.
Across the network, fares reform could incentivise over 300 million journeys on services with capacity for growth over a ten-year period, in addition to the 1.7 billion
journeys which currently take place on the network.
It will of course take time for the generative effects of price changes to work through and predicted customer behaviours would need to be validated through early experiences of implementation.
For this reason, a funding process will need to be identified to manage the transition.
Catalysing the North
There are a number of shorter distance inter-city markets linking the northern powerhouse cities that would benefit from fares reform.
Under the current system, legacy rules treat these as ‘regional fares’ that don’t necessarily distinguish between the different uses of these services, for
example, commuting from home to work, or business journeys between city centres. A reformed system would be more capable
of reflecting diverse needs, creating fares structures that could improve access to the network across all sections of the community.
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