Revenue protection is a critical issue for the UK rail industry, with significant financial and reputational implications for train operating companies (TOCs). The recent Transport Focus report on revenue protection priorities, aimed at improving the passenger experience, highlights the importance of simplifying ticketing and standardising approaches across the industry.
Transport Focus recently released a report on revenue protection priorities aimed at improving the passenger experience, emphasising simplification and consistency across the industry (full report here).
At ITAL, we recognise the challenges and opportunities outlined in the report and are uniquely positioned to support TOCs as they navigate these changes.
Simplification for Better Outcomes
One of the key recommendations in the report is the simplification of ticketing processes. Confusion at the point of purchase is a major contributor to revenue loss and passenger dissatisfaction. By streamlining ticketing, TOCs can reduce unintentional fare evasion, ensuring that penalty fares and prosecutions are reserved for clear and deliberate cases.
ITAL’s solutions are designed to integrate seamlessly with evolving ticketing systems, offering intuitive, user-friendly tools that align with industry best practices. Simplifying ticketing and providing clear guidance will improve passenger confidence while reducing the administrative burden on staff.
The True Scale of Revenue Loss
The report estimates annual revenue losses due to fare evasion at £240 million, a figure often cited in industry discussions. However, with the rapid rise of digital fraud, we believe the actual figure could be closer to double this amount. As more transactions move online, the need for robust fraud prevention measures has never been greater.
ITAL’s expertise in revenue protection places us at the forefront of addressing these challenges. Our systems leverage advanced analytics to detect and prevent fraudulent activities, protecting TOCs’ revenue streams and maintaining the integrity of their operations.
Financial Impact on Transport for London (TfL): Fare evasion costs TfL approximately £130 million annually. In 2023, Transport for London (TfL) prosecuted 19,614 individuals for fare evasion, marking a 56% increase from the previous year. TFL
Northern Railway’s Fare Evasion: Between April 2023 and March 2024, Northern Railway reported that ticketless travel accounted for 3% of journeys—the lowest rate on record. Despite this, the operator investigated 57,302 reports of attempted fare evasion, issued 41,922 Penalty Fare Notices, and recovered nearly £4 million in lost revenue. railtechnologymagazine.com
c2c’s Revenue Recovery: In 2024, c2c issued over 8,863 penalty fares to passengers without valid tickets, a significant increase from 3,542 in 2023. The total sum collected from these penalty fares was £337,068. Notably, one case involved recovering £15,000 from a passenger whose fraudulent activity dated back to March 2020. railuk.com
Supporting Consistency Across the Industry
Transport Focus’ call for a consistent approach across TOCs is a welcome development. Passengers deserve clarity and fairness, regardless of the operator they travel with. ITAL has long championed standardisation, providing solutions that ensure consistent practices across the network while remaining adaptable to individual TOC requirements.
Our experience with implementing a Yellow Card process, implemented successfully with several clients serves as a prime example.
This approach prioritises education and warnings for first-time offences, creating a fairer and more transparent system, and has demonstrated the value of education and consistency in revenue protection strategies. As always, ITAL’s solutions are ready to support any recommendations outlined in the upcoming May 2025 report, continuing our commitment to protecting revenue and enhancing the passenger experience.
Looking Ahead: ITAL’s Commitment
The May 2025 report promises further recommendations to enhance revenue protection, and ITAL is ready to support these changes. Our solutions are built to be flexible, scalable, and responsive, ensuring that TOCs can adapt to new industry standards with ease.
As the industry continues to evolve, ITAL will remain a trusted partner, helping TOCs protect revenue, improve passenger experiences, and embrace innovation.
We’d love to hear your thoughts on the Transport Focus report and the future of revenue protection. What do you see as the biggest challenges and opportunities for the industry?
Let’s continue the conversation.
