Rail regulator warns online ticket sellers ‘drip pricing’
Online train ticket sellers have been accused of using so-called ‘drip pricing’ tactics to glean more money from consumers.
Transport watchdog the Office for Rail and Road (ORR) warned consumers are being drawn into paying more than they need to amid a lack of transparency from online retailers during the sale process.
‘Drip pricing’ refers to a company’s holding back on revealing the full price of their goods when first advertised, instead delivering the information gradually so as to lure consumers into paying greater fees.
The ORR said it had written to several online ticket sellers, highlighting concerns over the practice in a sector already under fire for high ticket fares.
The ORR’s investigation reviewed 19 third-party ticket retailers. Of those, 12 charged booking fees, with seven not including their fees in the upfront price. Total booking fees ranged from as wide as 45p per ticket to £6.45 per transaction.
The review also looked at 21 train companies, who are not permitted to charge ticket booking fees although they can charge certain fees such as postage costs for ticket delivery.
Stephanie Tobyn, director of strategy, policy and reform, said: “This report highlights that some online retailers are not as transparent as they need to be when it comes to how they display or provide information on additional fees.”
“We want to ensure consumers are provided with timely and relevant information when making purchase decisions and that drip pricing does not undermine consumer confidence when purchasing rail tickets online.”
There are over 40 retailers selling rail tickets online, split between train operators and third-party groups. Of the online sellers, ticketing app Trainline is responsible for around 60 per cent of purchases, per a Transport Focus survey between December 2022 and January 2023.
The FTSE 250 company was set to profit from government proposals to remove in-person ticket booths from stations across the UK, but fierce backlash from unions and the public prompted a U-turn in October.
“We clearly and transparently display any fees on both our website and app to our customers before purchase. We will engage with this review from the ORR to understand their recommendations and ensure that customers have clear information,” a Trainline spokesperson said.