The problem of homogeneity of rail passenger delay compensation scheme rules in Great Britain: impacts on passenger engagement and operator revenues

Abstract

A rail passenger delay compensation scheme operates in the EU and Great Britain. British travellers are eligible to claim 50% of fare for delays of more than 30 minutes and 100% for delays of over 1 hour. The scheme rules were chosen arbitrarily and are homogenous across all ticket types and journey lengths. This study quantifies the impact of combined differences in the nature of operation and passenger engagement levels on the scheme's revenue burden for British rail operators. Short, medium and long distance operators repay on average respectively 0.3%, 0.8% and 1.8% of their ticket revenues as the scheme's proportionate revenue burden increases with fares and delay lengths. Further research is needed to either explain the reasons behind the differing revenue impact on different types of operators or suggest how the scheme can be redesigned to take these differences into account.