David Howdon wrote:
Dave Arquati wrote:

This is almost what happens on Silverlink Metro already; LU (paper)
singles are valid, as are NR cheap day singles/returns. You can choose
which to use depending on which is the cheapest for your requirements.



Does this work? If in general customers making the same journeys are
now paying less. Will the companies not raise their prices to recover
the loss?

I think some tickets are protected by limiting any allowed increase to
RPI+1% (not sure if that's just season tickets). Travelcard seasons are
set by the Mayor & TfL anyway.

Raising prices on other tickets wouldn't do them any good. It would
encourage people to switch to cheaper Oyster fares (although they will
get the appropriate part of the revenue from those anyway).

The only option to increase profits (or reduce losses) would be to
*lower* (off-peak) fares in the hope that more people will travel, with
the additional travellers using their own paper fares. They wouldn't
lower peak (rail-only) fares because the price elasticity of demand for
peak travel is low (i.e. changing peak ticket prices doesn't affect peak
demand very much) and because services are overcrowded already.

--
Dave Arquati
Imperial College, SW7
www.alwaystouchout.com - Transport projects in London