ONLINE rail ticket sellers have been told to clean up their act by the rail regulator, after an investigation found that passengers are paying more than they need to on some websites and apps.
Warning online ticket retailers to be “up front” about fees, the Office of Rail and Road (ORR) has written to seven of the 19 third-party ticket retailers (TPRs) which did not include their fees in the upfront price.
Threatening to take action about hidden charges (known as ‘drip pricing’), where an initial price is shown but additional elements are revealed later in the sales process, the ORR reviewed the prices of 19 TPRs.
It found that booking fees ranged from £0.45 (per ticket) to £6.45 (per transaction), and that finders’ fees were between 10%-15% of the saving made on a split ticket.
ORR has not named the seven, but says it is “highlighting its concerns” and is asking for details on how the companies “will address the findings”. It has asked for responses in January 2024.
The regulator plans to publish its letters and the retailers’ responses on the ORR website and will “consider any next steps accordingly”.
All TPRs have to be accredited by the Rail Delivery Group. In total, there are more than 40 retailers including train operating companies (TOCs).
The issue was continually raised in his The Fare Dealer columns by former RAIL columnist Barry Doe, who constantly advised readers to buy direct from operators, rather than third-party sellers.
A survey by statutory watchdog Transport Focus found that 55% of people buy rail tickets through apps and websites. Of these, 60% buy from Trainline, 5% from other TPRs, and 35% from TOC apps and websites.
Unlike TOCS, which are not allowed to charge a booking fee, TPRs can charge one - along with a ‘finder’s fee’ for split-ticketing, a collection or delivery fee, and a refund fee.
Under the Ticketing and Settlement Agreement (TSA), the refund fee is capped at £10. TOCs are allowed to charge certain fees, such as postage costs for ticket delivery.
“Consumers are often disproportionately influenced by the first headline price they see and can be drawn into paying more than they intended or needed to,” said ORR.
“UK consumer protection law requires retailers to provide people with the information they need to make informed purchase decisions.”
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