Roland Perry wrote:
In message
, at 05:40:44 on Fri, 7 Feb 2014, Recliner remarked:
Why should the TOCs allow free travel? At the very least what Boris
should do is pick up the tab for all TOC trips made by the over-60's,
*paying the regular price* whatever that is according to the time of
day. Surely the numbers for that will drop out of the Oyster computer
'at the press of a button'.

Why should the charge be based on "the regular price"?

Because that's what each over-60 would have paid, absent the discount card.

Sure, but most wouldn't have travelled at all.

I'm not so sure. Plenty will be going to work, or some other non-discretional trip.

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?

Because many of the trains are already over-subscribed, and flooding them
with pass-holders may well put off regular travellers.

Not after 9:30. Plus Freedom pass holders on discretionary trips probably
avoid travelling on packed trains.

But we were told about "years of negotiations" (fruitless ones) to get
TOCs to offer travel before 9.30 - so the TOCs believe there's an issue of
non-discretionary travel before 9.30

And they're right. People who regularly travel before 9:30 probably are
still in work, so there would be a loss of revenue. But those who mainly
travel after 9:30 are much more likely to be retired, on discretionary
trips, so there's very little loss of revenue.

Why is this so hard for you to grasp?