Trainline agrees reduced commission on ticket sales
By Sean Farrell
Date: Thursday 31 Mar 2022
(Sharecast News) - Trainline has agreed to reduce the commission it receives for selling train tickets as part of a review by the rail industry.
The FTSE 250 company said it signed an agreement with Rail Delivery Group, which represents train operators and the rail network, that starts on 1 April 2025.
The deal will cut commission rates for Trainline and other sellers of rail tickets to 4.5% from 5% and reduce central industry costs. The net result will be a reduction of commissions of about 0.25 point.
Trainline shares jumped 20% at 238p at 08:32 BST as investors showed relief about the relatively small reduction in fees.
Jody Ford, Trainline's chief executive, said: "This is a step forward in providing greater certainty to Trainline. It allows us to invest further in product innovation and marketing to encourage more people back to rail. We are committed to continuing to work constructively with RDG and the government to reach agreement on a future retail framework that works for the customer, the industry and rail retailers like Trainline."
The agreement will take effect if Trainline and other ticket retailers cannot agree new terms with RDG. Trainline's shares have more than halved over the past year after the government said it would launch a rival ticketing hub as part of an overhaul of the UK's railways in light of the Covid-19 crisis.
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