News Analysis: GBR searches for answers to ticketing simplification

• Government aim to roll-out PAYG Technology across London, West Midlands and Manchester as it targets ticketing overhaul
• A new ticketing retailer will also be set up as part of Great British Railways
• Ticketing reform could be a complicated mess unless tackled properly and with region's help

It’s full steam ahead for ticketing reform, as the Department for Transport tackles the complicated system on two fronts. RICHARD WILCOCK looks at the implications

THE future under Great British Railways is one which few are privy to yet. But one area where it does appear to be marching forward with a clarity and purpose is ticketing. Transport Secretary Heidi Alexander recently told an expectant crowd of rail industry leaders in Manchester that the government will be looking to reform ticketing and fares over the coming year, as well as offering a best price guarantee.

Furthermore, Alexander said that pay-as-you-go (PAYG) technology will be rolled out across the country, after its introduction in the South East.

That project, costing £20 million and funded through the previous government’s ‘Plan for Change’, has been led by the Department for Transport and has included Transport for London and four other operators (see panel). Last month, it was announced that a further 47 stations will have contactless technology installed.

In total, after the previous 49 have been integrated into the scheme this month, just over 200 stations will have PAYG. This means that all airports in the wider South East of England region will have contactless technology.

A passenger will be able to travel from Southend to Sevenoaks without having to purchase a ‘physical’ ticket, while also being offered the best available price at the point of travel. It is easy to see from a political perspective why the Transport Secretary is keen on this method of ticketing, with her speech in Manchester noting how passengers want rail to be easier and outlining the Great British Railways objective of “putting passengers first”.

It is even easier to see why ‘passenger-in-chief’ Alexander and the DfT has decided to tackle ticketing and fares first. Along with reliability and punctuality, value for money is a top priority for passengers.

Change is something that Campaign for Better Transport has been urging for several years. In 2023, CBT released its A Fare Future for All report, which demanded a huge overhaul of the fragmented and overly complicated nature of ticketing. It highlighted the absurdity of the current system, with more than 55 million different fares available, bizarre rules and exceptions attached to certain tickets, and the lack of value on offer for passengers.

 It also said that 35% of people surveyed cited ticketing as the main barrier for not using the train to travel. The task now, believes CBT’s Michael Soloman Williams, is to bring as much parity to the rest of the network as that which is soon likely to be available in urban areas.

“A key challenge for the government now will be how to link regional or local PAYG fares with fares on the national rail network, to enable people to travel with the same confidence not only within, but between, different parts of the country,” he tells RAIL.

That could take a little while longer. After all, inter-city travel relies heavily on advance ticketing, and until GBR has been established, that model (and hence the lack of parity in travel costs) is unlikely to change. This hasn’t stopped the CBT, which has long sought a best price guarantee.

But despite the current national limitations, Soloman Williams believes the PAYG technology being implemented in the South East can only be a good thing. He adds: “Ease and simplicity when it comes to fares is crucial to passenger experience, and the daily cap with PAYG gives people the confidence that they are being charged the right amount for their journey - a sort of ‘Best Price Guarantee’, something we’ve long argued for.”

With the successful implementation of the technology in the South East, focus will switch to cities such as Birmingham and Manchester, which have turned covetous eyes to the capital for inspiration.

Greater Manchester Mayor Andy Burnham has wasted no time. After the announcement of a pilot scheme last year that will see 90 stations across both the West Midlands and Manchester being installed with tap-in tap-out technology, Burnham has taken it much further by announcing it will form a major part of the region’s plan for rail and the expansion of its integrated transport offering - the Bee Network (RAIL 1027). Burnham clearly sees the value in public perception, with simplicity and ease at the heart of his argument. He has repeatedly said that customer experience is of equal importance to upgrades, and by aiming to remove the headaches (and sometimes complete lottery) of suburban rail travel, he is one step closer to realising that dream of a truly integrated transport network. Meanwhile, as the likes of Manchester and Birmingham both aim for a better passenger experience, the DfT has set its sights on nationwide ticketing reform.

It has also announced that GBR will have its own online ticketing retailer, with the aim of helping to simplify ticketing even more. This idea was part of the Williams-Shapps Plan for Rail in 2021, but the Conservative government at the time quickly rowed back on this commitment after assessing the impact on the private sector.

Now, though, the idea is back, with the expectation that current train operators’ ticket-selling websites will be absorbed into this new retailer, with a single website planned to launch in late 2026. This idea is appealing, if only for advancing the theme of simplicity. But the difficulty will be in its implementation - not only because the government will need the courage of its convictions to resist the pressures from the private sector, but because it will also need to ensure fairness if it is (as expected) going to set fares while promoting a competitive market.

Ticket retailers were bullish at the announcement, with Mark Plowright, director of retailer at Virgin Trains Ticketing, saying: “There’s still much more work to be done to simplify rail tickets and make train travel less confusing for passengers, which is why Virgin Trains Ticketing continues to campaign for more straightforward ticketing.” Trainline welcomed the move, despite its shares falling on the day of the announcement by 7%. It said it has an “unequivocal commitment to a competitive retail market”.

And Anthony Smith, chair of Independent Rail Retailers, added: “Open and fair competition will help to drive innovation and reduce costs. We look forward to continuing to work in partnership with the Department for Transport and the rail industry to make buying a ticket simpler, easier and better value.” Although bullish on paper, retailers will nevertheless be concerned that in the rush for simplification, the new ticketing retailer will make it difficult for others in the private sector to gain access to the same fares and deals as GBR.

This scenario could possibly skew the ticketing landscape and give the edge to GBR. For Trainline, the UK’s largest online ticketing retailer, consolidating 27 train operating companies’ ticket-selling websites into one (over a period) will ultimately mean it loses its position as an aggregator - a key selling point.

It will also mean that it will potentially no longer be providing its platform to almost half of the 27 operators, which has given it an almost unrivalled edge over other retailers. Although, in theory, it could be bad news for many private retailers, GBR must build this ticketing platform, deliver a strong user experience, and begin unpicking the myriad of ticketing options if it is to deliver on its promises of “putting the passenger first”. That could be a tall order, given its recent track history.