Rail fares to rise by RPI + 1%, Good value? Options

[Biker1]

FGW rail fares are to rise by approx 6% in the new year.
Is this good value bearing in mind that it is reported that motoring costs have risen by twice that amount in the last 12 months?
Is the extra revenue to go on shareholders dividends or to be re-invested in the infrastructure as we are told?

[Simon Kirby]

FGW rail fares are to rise by approx 6% in the new year.
Is this good value bearing in mind that it is reported that motoring costs have risen by twice that amount in the last 12 months?
Is the extra revenue to go on shareholders dividends or to be re-invested in the infrastructure as we are told?

By my estimate the real-terms cost of motoring fell by 2.4% this year. Every year after the spring budget the AA publish true cost-of-moting tables for a variety of car sizes and annual mileages (see 2010, and 2011). Comparing the cost-of-motoring for a typical family diesel car in the £17,000 to £20,000 price range and an annual milage of 10,000 gives a cost per mile increase of 2.9%, and with the March all-items RPI at 5.3% this represnets a real-terms reduction in the true cost of motoring for a typical family car of 2.4%.

On this basis an RPI+1% increase is equivelent to Cost of Motoring Index + 3.4% increase.

However, I'm not sure how helpful it is to compare the cost of rail travel in these terms. For starters, what's the comparable cost of rail travel? For example, Birming Park and Ride Kings Norton to Five Ways, £3.70 return with free parking at Kings Norton, that's less than half the cost of the equivelent car journey and then you'd have the not insignificant difficulty of parking in central Birmingham. However, take a first class Anytime Return from Newbury to Bath Spa at £194 and that's about 155p per mile, and that's two and a half times the equivelent cost of the car journey, and if you actually have a car then the comparative cost of the car journey is more like 15p per mile as you've already paid for the insurance and depreciation and stuff whether you drive the thing or not, and if you're carrying passangers they're free in the car but full-fare on the train.

Just saying that comparing cost of rail with car is not at all simple.

[Biker1]

Just saying that comparing cost of rail with car is not at all simple.

Agree, but that is what the TOC's are doing this time it would appear.

if you're carrying passangers they're free in the car but full-fare on the train.

Not necessarily true.
There is a deal called "Groupsave" for parties of travellers.

[Simon Kirby]

There is a deal called "Groupsave" for parties of travellers.

Sounds almost Orwellian. I don't take the train much, but there has always seemed to be too great a variety of ticket - even the ticket office doesn't always understand the best ticket to sell you.