On Fri, 7 Feb 2014 10:56:26 -0000 Robin wrote :
Why should the charge be based on "the regular price"? That seems a
remarkably crude approach (c/f your own arguments about airline pricing
in December). Any normal person buying in such bulk would expect - and
get - a substantial discount as the TOCs get in return a secure source
of revenue with few overheads. What's wrong with starting from the
long-run marginal cost (LRMC) to the TOC (including of course loss of
revenue from other customers displaced) plus a profit margin?

Of course if the LRMC is too high then something has to give. Eg I'd be
inclined to keep the pre-09:30 exclusion if that is where there would be
significant displacement and so additional cost. But let's not pretend
the TOCs are losing significant revenues from, say, me getting a train
mid-afternoon which is c10% loaded for a journey I'd rarely make if I
had to pay the full fare.

Agreed. The LMRC (unless services were increased to cope with demand) is
near nil, so the key number is how much this group would be spending on
fares in the absence of free travel. With an 0900/0930 restriction, the
answer is probably not a lot; remove this and you add in large (and
increasing) numbers of those in work who have to travel and will pay the
standard fare.

I now live in Melbourne where at 60 if you sign that you are no longer in
full time work (I don't know whether they check) you are eligible for
concession fares, half the adult fare, free travel at weekend. London is
more than a little generous by comparison.

--
Tony B