UK: An agreement has been reached to continue the sale of Day Travelcards, which offer unlimited travel on most public transport in London and can be bought in combination with rail tickets to the capital from elsewhere.
‘The offer now on the table saves a much-valued product for visitors to London, while giving Transport for London a fairer share of ticket revenue’, said Mayor of London Sadiq Khan on October 24.
The government has required Transport for London to make significant savings in return for the emergency funding agreements put in place after fares revenue collapsed during the pandemic.
As part of this, TfL gave notice of its intention to withdraw from the Travelcard Agreement from January 2024, which would have effectively ended the product.
The way Travelcard revenue is shared between TfL and National Rail operators means TfL’s share is lower than it would be from the same journeys made with Oyster smart card or contactless pay-as-you-go and fare capping; TfL estimated that it would gain £40m/year if Travelcard users switched to using PAYG, with customers in London paying the same or less while people travelling from outside London may pay more.
TfL said its withdrawal notice could be retracted if the Department for Transport and train operators proposed a financially acceptable alternative arrangement, Following negotiations with DfT and the Rail Delivery Group, which represents operators, an agreement has now been reached.
This includes a one-off price increase averaging 3% for Travelcards bought with tickets from outside Zones 1-6 from March 2024. This is designed to offset the revenue impact on National Rail operators, and is in addition to any general regulated fares increase.
‘As part of the Covid-19 financial deal TfL made with the government, there is a requirement to make savings of £600m’, said Khan. ‘I refused to countenance removing weekly, monthly or season Travelcards and today I am pleased to confirm the Day Travelcard is also now safe.’
London TravelWatch CEO Michael Roberts said ‘passengers will find having to fork out an extra 3% a ticket on top of the annual fares rise in March a nasty sting in the tail, especially with budgets still tight for many. The outcome is not perfect but ultimately we’re glad a solution has been found’.
