Plans to set up a government-backed online rail ticket provider were abandoned just days after a regulator warned that private companies were charging hidden fees.
When announcing the turnaround, the Department for Transport (DfT) emphasised the “important role” of the private sector.
The proposal for a new ticket sales website and app was put forward by then Transport Secretary Grant Shapps in May 2021 to simplify the process.
The responsibility for this was to lie with the planned state-owned railway company Great British Railways (GBR) and would have competed with ticket vendors operated by private companies.
On Monday, the Office of Rail and Road published a report saying that seven companies, including Trainline, were using drip pricing, meaning additional charges were added to advertised low fares.
The regulator’s review found that booking fees ranged from 45 pence per ticket to £6.45 per transaction.
In February, Transport Minister Mark Harper promised to strengthen the role of the private sector in Britain’s railways.
When announcing the decision not to establish a new ticket broker, the Ministry of Transport stressed that it was “committed to improving the passenger experience on rail”.
A statement said: “The private sector has an important role to play in driving innovation and attracting more customers to rail.”
He continued: “We are focused on opening up railway data and systems and lowering the barriers to entry for independent rail ticket retailers to improve the passenger experience.”
“We confirm that we have no plans to provide a centralised online rail ticket retailer for Great British Railways.
“Train operators will continue to sell their tickets to passengers online, alongside existing third-party providers, while we develop measures to stimulate competition in the online rail ticket market and thus improve the situation for passengers.”
Following the DfT’s announcement, Trainline shares rose 14.5 percent in early trading on Friday.
The company’s shares fell by about a quarter when the government’s proposals were first unveiled in May 2021.
