Train ticket prices: MPs urged to fix 'broken' system for train ticket prices

Mark Plowright, Director of Virgin Trains Ticketing, called on Parliament’s Transport Committee to conduct an inquiry into the current system and identify potential solutions.

He said confidence in the railways is at an “all time low” but independent retailers, like Virgin Trains Ticketing, can boost passenger numbers by using private sector investment to advertise and sell tickets to a wide range of people.

He said the Government needs to take steps to increase the number of retailers and create “a level playing field”, so they can “compete equally” to offer low prices and the best customer service.

Under the current system, train operators have an advantage as they have the freedom to decide who sells their tickets and introduce their own discount schemes, such as LNER’s Smart Save and Avanti West Coast’s Superfare.

Retailers make 5 per cent commission on the tickets they sell, but that will be reduced to 4.5 in April 2025 and Mr Plowright said that is “hardly enticing”.

“Retailers need to be better incentivised to grow new markets that operators find hard to reach,” he said.

“Cost of entry should also be simplified and reduced so the rail industry, like Coca Cola, can sell the same great product on as many shelves and shop windows as possible.”

He added: “We need to let the shops sell the goods, if we are serious about boosting rail ridership to a new high.”

Mr Plowright said that if the new publicly-funded body Great British Railway takes charge of ticketing and introduces a centralised booking system, there is a “real risk” that it could limit competition.

He said: “Why should we use taxpayers’ money to reinvent the wheel on rail retail when retailers already have the reach and the technology? Isn’t taxpayers’ money better used on improving the rail network?”

Fares rose by up to 5.9 per cent on average in March – the largest hike since 2012 – despite widespread disruption and a series of strikes.