Third-party
ticket
retailers


who
quietly
add
fees
to
the
fares
they
display
to
passengers
are
being
warned
by
the
Office
of
Rail
and
Road
that
they
must
be
transparent
when
quoting
prices,
and
not
leave
out
a
booking
fee
or
other
charges
which
will
be
added
to
the
final
fare
payable.

The
practice
of
hiding
fees
is
known
as
‘drip
pricing’,
and
some
airlines
have
also
been
accused
of
staying
silent
about
charging
for
such
things
as
allowing
passengers
to
book
seats
next
to
each
other
or
taking
baggage
on
board,
only
revealing
the
charge
when
the
transaction
is
almost
complete.

The
rail
regulator
has
examined
the
trading
practices
of
19
third-party
retailers
who
are
licensed
to
sell
rail
tickets.
They
are
entitled
to
keep
5
per
cent,
which
is
the
industry’s
standard
commission
rate.
But
12
of
the
retailers
examined
also
charge
a
fee
to
passengers
in
addition
to
the
fare,
which
ranges
from
45p
for
each
ticket
to
£6.45
for
each
transaction.
Some
also
offer
to
calculate
split
ticket
reductions,
but
charge
a
‘finder’s
fee’
for
this
service,
which
is
typically
between
10
and
15
per
cent.

The
ORR
noted
that
‘consumers
are
shown
an
initial
price
while
additional
fees
are
revealed
later
in
the
sales
process.
Consumers
are
often
disproportionately
influenced
by
the
first
headline
price
they
see’,
and
that
‘UK
consumer
protection
law
requires
retailers
to
provide
people
with
the
information
they
need
to
make
informed
purchase
decisions’.

Train
operators
also
sell
tickets
via
the
National
Rail
website,
but
although
they
do
not
charge
fees
or
commission
on
top
of
the
official
fare
they
can
charge
for
such
things
as
posting
paper
tickets.

The
ORR
is
calling
on
all
retailers
to
make
sure
that
any
booking
or
finder’s
fee
is
included
in
the
headline
price,
that
there
is
a
clear
breakdown
at
every
stage,
with
appropriate
prominence
given
to
any
additional
charge,
and
that
any
additional
fees
are
stated
plainly
before
the
booking
process
begins.

The
ORR
has
written
to
seven
third-party
retailers,
highlighting
its
concerns
and
asking
for
details
on
how
the
company
will
address
the
findings.
The
regulator
said
it
plans
to
publish
its
letters
and
the
retailers’
responses
on
the
ORR
website
and
will
consider
any
next
steps
accordingly.

The
regulator’s
report
comes
at
a
time
when
the
Department
for
Business
and
Trade
is
expected
to
publish
its
findings
of
a
wider
consultation
into
price
transparency
that
highlights
the
risks
of
drip
pricing.

The
ORR’s
director
of
strategy,
policy
and
reform
Stephanie
Tobyn
said:
‘Consumers
can
now
purchase
rail
tickets
from
a
wide
variety
of
websites
and
apps.
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.’