Euston announces: "Please be aware that tickets marked London Midland Trains Only are not valid on this train." Hm, funny there are no tickets marked as such are there!?
Not precisely, but close enough to anyone who isn't just being picky. FWIW they are marked "LDN MIDLND.ONLY" (though the new format may spell it out in full, LM are not issuing the new format yet).
It's using "VTWC TRAINSONLY" that is likely to cause confusion on a route East Coast goes nowhere near.
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I can't see the justification for offering a VT only BHM -BHI ticket other than to manipulate revenue streams in a cynical fashion.
In a sensible world, BHM-BHI would be a Verbund ticket valid on all TOCs plus buses. But this ain't Germany (and I guess in Germany it wouldn't be valid on VT). I think Germany does recognise quite well the idea that city transport works well as a monopoly while competition can work better on InterCity, though only sometimes.
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I think the main issue is Virgin's TVMs listing their (slightly) cheaper tickets first.
Shere FastTicket machines (of whatever TOC) list the cheapest ticket first, which to me is the right way to do it. You can then read down until you find the cheapest one that fits your needs. I find this better than the Scheidt & Bachmann ones where to compare prices for different routes you have to drill down repeatedly.
I think to start interfering with that would actually be anti-competitive and unnecessarily confusing. If LM want their ticket first, they need to reduce it in price so it's cheaper than the VT one. Surely that's simple competition?