Marketing Audit Of National Rail: Background, Objectives, And Analysis

Company Background and Mission Statement

The report aims to provide an insight into the marketing audit of National Rail (NR), based in Great Britain. The marketing audit refers to the comprehensive, independent, systematic and periodic evaluation of the environment of a marketplace along with the operations and the marketing strategy of an organization for determining the opportunities and the problem areas while recommending an action plan for improving the performance (Kitchenko and Kuchina 2019). A market audit is performed to understand the dynamics of the external environment to which a firm adapts (Chen and Yang 2019). The audit is also carried out for evaluation of the past performance as well as the current activities for assessing the suitability to adapt. The marketing audit also helps in capturing the trends.

National Rail (NR) is a trading name licensed for the use of Rail Delivery Group, which represents an unincorporated association responsible for passenger train operating companies  (TOCs ) across Scotland, England and Wales (nationalrail.co.uk 2022). The TOCs are known for running the passenger service provided previously by British Railways Board from 1965 under the brand name British Rail. National Rail service also shares the ticketing structure and inter-availability that does not extend to the services not part of the British Rail.

The report commences with the background of the firm including the objectives and the mission system. An external and internal audit follows this. The external audit focuses on the analysis of the macro-environment which is PESTEL. This task environment is represented by the strategic triangle and the strategy, which is determined by the effectiveness and appropriateness. The internal audit focuses on the organization, determined by the capability and flexibility, systems, determined by analysis, planning as well as controlling. The internal audit also focuses on the productivity marked by profitability and cost-effectiveness.  The report also undertakes a competitor analysis by focusing on the strategic groups, perpetual mapping and the competitors of the brand. Besides, the report also sheds light on the marketing mix by focusing on the four 4P’s, which are product, place, price and promotion. In addition to this, the report also undertakes a SWOT analysis, thus enabling the evaluation of strengths, weaknesses, opportunities and threats associated with the firm. It is followed by a conclusion with an insight into the strategic priorities for the upcoming year, depending on the analysis of the present situation.

The National Rail is the trade name for the Rail Delivery Group, a self-governing group comprising the member companies that operate passenger trains across Wales, Scotland and England. The National Rail had its logo introduced by the Association of the Train Operating Companies (ATOC) in 1999, which previously used the logo of British Rail in the year 1965 (Webber 2018). The new logo got introduced in the public timetable of Great Britain on the 26^th of September, 1999. Its usage rules are mentioned in the Corporate Identity Style Guidelines put across by Rail Delivery Group, available on the website. The National Rail title had been used by the British Rail, an independent operator, before franchising. The use also helps in maintaining public familiarity while avoiding the need for replacing the signage. The National Rail service also has a common structure for ticketing inherited from the British Rail.

Marketing Audit

Ticketing remains available between any pair of stations on the network and might be bought from any office meant for providing station tickets (Kos-?ab?dowicz 2014). There is also the inter-availability of most tickets between services of all the operators on the suitable routes for the journey that is being made. Operators on similar routes seem to offer definite tickets based on the operator, which are cheaper than the inter-available ones. The National Rail service also ensures that pocket timetables for the routes and the individual operators are available at the staffed stations (Cab, Taxis and Cabs). An official printed timetable with around 3000 pages was printed in 2007. Presently, the complete timetable is available in the digital version on the company’s website. Passengers are, however, suggested to collect their timetables from the individual passenger train firms. National Rail dedicates a complete website for inquiries, including a journey planner and information on live departure and fare. The site is designed to match the varied websites of the private rail firms of Britain. Hence when the users select the tickets they prefer to purchase, they are usually redirected to the company website of the suitable trains where they can purchase the tickets without any fees. In 2012, the website was joined by a mobile app, making it available on Android, iPhones, and Windows Phone, thus mirroring its functionality.

The mission of the National Rail lies in running a safe, efficient and reliable railway that serves the customer and the communities (raildeliverygroup.com 2022).  It is Rail Delivery Group (RDG)’s brand dealing with public enquires, thus providing time table and information for the train operating firms of Britain.

The objectives of the National Rail lie in formulating strategies based on the initiatives of commercial policy and the operational capacities for raising the modal share of railways in the freight by about 45 percent. It also helps reduce the transit time of the freight sustainability by raising the average speed of the freight trains by about 50 Kmph (assets.publishing.service.gov.uk 2022).

Political: National Rail is the pubic-facing brand of Rail Delivery Group (RDG).  The Rail Delivery Group (RDG) brings together firms that run Britain’s railway into a single team to ensure an effective railway for individuals and the community. It thus undergoes a higher degree of scrutiny by higher governmental authorities. National Rail, however, has the freedom of managing the commercial and the operational objectives provided the decisions fell within control and the regulatory framework put forward by the Government (Mills, Monk and Stevens 2016). A study conducted in 2014 revealed the passive influence that the government seems to have on the public members in every political decision, encouraging them to avail the of public transport (Anderson 2014).

Economic: The public-facing brand of Rail Delivery Group, National Rail, also faced the impact of the double rise in demand through the increase in the number of enquires. It happened before the  Brexit referendum that worked in support of leaving the European Union (EU). It is, however, seen that with the implementation of the Brexit, there existed legal barriers that imposed restrictions on the freedom of travel for any member of the European Union into the UK (Rosewell and Hargreaves 2022. It seems to question the aspect of sustainability and the need for increasing the capacity for facilitating the double increase in the demand for the upcoming 25 years.

Political Analysis

It was found through a national audit carried out in 2015 that by the year, 2041there shall be a rise in the demand by close to 100 percent for the passengers and close to 90 percent for the freight trains. It requires National Rail to have the means to plan for supporting the rise in demand. 

Social: The rising congestion across the road in bigger metropolitan areas like the UK requires the road users to choose an alternative route for transport, such as trains (Buchanan 2015). The government might, however, argue regarding the investment in infrastructure projects like railways that would enable an increased number of people commuting by train. The longer duration of these projects raises questions regarding the anticipated short-term effects of improvement. Statistics have shown that there has been a rise in the population of the UK between the years 2000 and  2020, along with a rise in the density of people with an explicit rise in the urban population of the UK ( shown in Figure 1, Appendix 1). Thus, the demographic argument supports the necessity of the upgradation of the rail infrastructure and National Rail service to provide easier means of travel and an enhanced capacity.

Technological: The impact of the technology on National Rail can be determined based on the research and development, ICT trends and the  Quality of Service (QoS) framework (Yin et al., 2017). When it comes to the research and development, it is found that there are close to 40 UK institutions and around 6  universities that are involved in the research-related rail-oriented process through the use of the new technology for improving the various aspects of railways. Such development shall impact the people on a mid-long term basis as the implementation of the elements shall be costlier provided the size of the network. As far as the Information Communication Technology (ICT) trends are concerned, research indicates that the ICT trends include using the Wifi, passenger information points, screens for infotainment, CCTV equipment etc., becomes necessary for meeting the expectation levels of the present user (Harris, Wang and Wang 2015). In present times, the commuters also choose a mode of transport based on the comfort of using the tablets or laptops. Such information can also be made available by National Rail. According to Nicholson et al. (2015), applications based on the QoS framework can aid National Rail in simulating and benchmarking the performance through the use of the software tools, ensure the comparison of the timetables and the visual tools for observing the delays while using actual operational data with the help of digital representations that can be quite productive when utilized by the Train Operator Companies (TOCs).

Environmental: Travelling by train can be considered an experience than a journey. It is one of the greenest means of public transport and a solution for a lower carbon future where roads seem to be safer and quieter and the air breathed cleaner (raildeliverygroup.com 2022). With Britain emerging from the pandemic, there are further chances of pursuing a greener and cleaner recovery. The UK government is bound legally to reduce the carbon emissions and hence firms should be their part in reducing the carbon emission hence the rail industry must work harder to become greener. It is to be noted that opting for a train aids in tackling climate change thereby cutting the carbon emission by two-thirds compared to the traveling by the car. It is for this reason that an increasing number of people, as well as freight, are switching to rail. National Rail is greener means adopted by Rail Delivery Group that allows valid trains to be checked utilizing the journey planner via a website. The website also provides further information on the maps of restricted areas.

Economic Analysis

Legal: The National Rail ensures the availability of valid trains for outward travel and onward travel (nationalrail.co.uk, 2022). Through the service, people can get information on the train timings and the tickets including special offers and cheaper fares. People are also able to derive information on stations and the trains along with an upgraded version of the changes in the train timings. National Rail should ensure upgraded assistance for the elderly or the disabled passengers or people through providing options for checking the Availability upgraded service in the form of helpful information like accessible facilities at the particular National Rail station before making travel.

Organization: Here, the organization refers to the capability and the flexibility of the service. Capability refers to combining the tools, skills, behavior and process for delivering a specific outcome (Srinivasan and Swink 2018).  Flexibility refers to the ability of the service provider to respond to the changes or bring about a change that suitably supports the value creation of the customers. When it comes to capability, it can be said that the National Rail represents the brand used for promoting the passenger railway services, thus providing a certain degree of harmonization for the passengers when it comes to ticketing. When it comes to flexibility, the National Rail enables the passengers to purchase tickets online from the ticket retailer after selecting the ticket in the Journey Planner (www.nationalrail.co.uk 2022). It also aids passengers in booking tickets via the phone by using the numbers on the pages of the Train Company. Passengers are also provided with information about the availability of the ticket at the ticket office and the self-service ticketing machine. The National Rail service also provides information on making reservations and issuing tickets via the appointed travel agent. In addition to this, the National Rail also provides information on the flexibility provided in changing the tickets. According to the available information, depending on the kind of ticket holders, travelers can change their travel plans or attain a refund if they are not traveling. However, the advance tickets cannot be refunded unless the train is delayed or canceled and a person loses the urge to travel.

Systems: This can be explained based on analysis, planning and control. Analysis refers to the detailed examination of things that are complex for understanding nature or for determining the essential features. Planning refers to the method of thinking concerning the activities necessary for achieving the desired goal, while control refers to the power or the authority of managing. When it comes to the systems of the National Rail, it is found that its online portal provides access to journey planners, ticketing facilities with options of savings, information on stations and trains, and providing travel updates along with necessary help and support. The available options are a boon for passengers who sometimes find them clueless.

Cost-Effectiveness and Profitability:  The profitability and the cost-effectiveness of using the National Rail lie in providing a journey planner. The journey planner refers to a special search engine for finding the optimal means for traveling between given locations. The journey planner of National Rail allows the traveler to view the recent journeys, set up a customized alert and save on favorite journeys. The journey planner allows the traveler to sign up for the ‘Alert me’ which is a personalized, unique and disruption message tool that is being brought by either Messenger or Facebook or Whatsapp (nationalrail.co.uk 2022). National Rail thus provides the customers with personalized real-time information during disruption times. It is the commitment of the rail industry to enable the customers to control the journey and provide a better experience so that one can travel with confidence. The journey planner also provides profitable options by providing a flexible offer for a season ticket for 8 days with a travel of 28 days at any given time between the two stations. It is a flexible solution that works perfectly when an individual requires to travel to work frequently within a week during the peak times from Monday through Friday (nationalrail.co.uk, 2022). The search engine also provides information on advanced tickets and the seat reservations. The advance tickets are usually unavailable before 12 weeks from the travel date. On confirmation of the train timings, advance tickets appear on the Journey Planner. One can find complete details of the availability and choose to buy them from the preferred retailer. Advance tickets are generally sold in limited numbers for the available service.

Social Analysis

Changes to the train timings are also informed to the customers. There are times when the train timings change during the weekends while the bank holidays allow the essentiality of the engineering work that needs to be carried out. Some trains are re-routed or retimed. There is a dedicated section of the website that provides details regarding the future of engineering work. The train companies look forward to providing the information regarding the changes to the train tining close to twelve-week in advance. Unless changes to the timetable get confirmed, it is impossible to purchase advance tickets or make seat reservations for the train services, which the engineering work might impact. The Journey Planner put forward by Network Rail also provides access to the temporary change in the timetable and further enables having an overview of the booking horizon.

Two Direct Close Competitors: Direct competitors are the business that offers the same kind of service for the needs of the same client within the same market. The two close competitors of National Rail are Stansted Express and Grand Central Railway. Stansted Express happens to be the brand of the National Express (stanstedexpress.com 2022). The national express happens to be a train operator that provides services to the London, Liverpool Streer and the East of England. Grand Central Railway Company, on the other hand, represents an established operator of railways that puts across rail connections across the cities and the towns of Yorkshire and North Eastern England along with London (grandcentralrail.com 2022). It seems to provide a consistently higher level of customer satisfaction. 

Distinction Between the Companies: This involves distinguishing between the direct competitors by identifying their qualities. Differentiation aids in interpreting the results of the analysis of the strategic group easily.  The National Rail, on average handles around two and half million journey planning inquiries each weekday through its contact center, website and mobile apps via the information service that is being supplied to the third parties. The competitive advantage of National Rail lies in providing journey planning, real-time fae and ticket information along with rail associated information for all the rail customers. 

Standsted Express, on the other hand, provides all the required information that a passenger requires to make the journey as simple as possible. It has a  tool representing the live train timing designed for faster and easier finding of the train timings. This online tool offered by Standsted Express allows for searching time for the desired journey and viewing real-time information related to the journey including mentioning the time of the train’s departure (Mogaji and Erkan 2019). The tool also allows for checking whether the trains run on time and whether there is any disruption online.

Grand Central represents an open access operator of the passenger train. It helps in providing the customers with the best possible journey. It seems to be connecting Yorkshire, London Kings Cross and the North East ( David 2017). In 2020, the service offered by Grand Central had been the best in terms of customer satisfaction and the value for the money. The service provided by this operator ensures an effective way of travel that is not only reliable but at the same time provides exceptional and relaxing service. The Grand Central thus provides convenient stops for stations and comfortable seats with increased legroom, which is friendly and helpful for board staff. It also provides free Wi-Fi, power points and a room for working. The Grand Central provides the freedom to plan train travel at least six months before the plan to travel.

Competitor Analysis

Perpetual Mapping: The maps of the strategic analysis indicate how the competitors seem to compare one another (David, David and David 2013). Their positions can be based on their defining characteristics. It can be described as follows

Figure 3: Perpetual Map Showing the Positing of National Rail

Source: By Author

Evaluation of the Outcome: The perpetual map represents a two-dimensional mapping method used to visually display the perceptions of the prospective customers based on their characteristics ( Vidal et al.2016). The positioning indicates that National Rail is at a  position above Grand Central and Standsted Express in terms of convenience and cost-effectiveness since it holds the capacity to handle over a million inquiries every week through its website, mobile apps and the contact center. It also allows individuals to view their recent journeys, set up the customer alert and save their favorite journey, which also enables it to stand out.

Product: The National Rail is a  part of Rail Delivery Group providing business service to the train operating firms, Freight Operating firms and Open Access Operators. The management of the website of the National Rail is shared by the Rail Delivery Group and the Train Operating Companies. The particular information of a train company, such as products, stations, promotions and the restriction code, is managed by National Rail. The inquiries associated with the National Rail include journey planning, real-time information and information related to fares and tickets along with information associated with rail to all the passengers of rail. With an increasing number of people traveling by train, there is a need for the railway industry to provide faster, accurate and impartial information which has never been so significant. The National Rail seems to be leading the way in maximizing the communication technology for providing access to the information both during journeys and before the travel. With the customers’ demand for updated minute information, it is vital to improve the delivery service on every occasion irrespective of the media required.

The journey planner offered online by the National Rail enables the users to find the most suitable options for journeys between any given location of the National Rail. Utilizing complicated rules for finding the suitable journeys, the last release of Journey Planner enables the users to (Cheung and Sengupta 2016):

• Plan the journey to or from the Zone 1 of London or Docklands Light Railway DLR station
• Quick overview of whether a journey is being disrupted in the real-time and opt for seeing appropriate alternative journeys
• Registering or receiving message alerts regarding the delays to the trains either as the ‘one-off’ request or for similar trains over a longer period.
• Viewing the availability of the fares that are quota controlled so that the customers are exactly able to know the exact availability of the tickets during the time of the inquiry.
• Fiding the cheapest rates based on dates and across the various operators.
• Find comprehensive ticket conditions and terms and the information related to the ticket route. The customer is aware of when and where to use the ticket.
• Discovering the special offers that might be associated with the journey requested
• Seeing the range of the add-on fares like the London Travelcards that might be available
• Producing personalized pocket-sized timetable that they can print out or carry along with them
• Finding prices of the season tickets for the appropriate journeys for a minimum of  seven days and any given period between a month and the year
• Allows contactless payment of the fares and the fares of the National Rails.

Place: The National Rail act as a definitive source of customer information for all the passenger services associated with the rail across the network of National Rail around Wales, England and Scotland (Bradley 2015).

Price: The National Rail allows its passengers to enjoy more than 1 million moments of discounts as they reconnect with places, people and the things they seem to love most while enabling them to get 50 percent off on selected advance tickets from the specific retailers. However, there is a limitation on the promotional ticket and it is subjected to the exclusions and availability. Passengers should thoroughly go through the terms and the conditions for further details. One must do a booking between the 10.00 on the 19^th of April, 2022, till  23.59 on the 5^th of May, 2022, for the travel between the 25^th of April and the 27^th of May, 2022. Tickets should be purchased in advance, at least a day before the travel date. Promotional tickets are usually not available on every route or from most train companies and might not also represent the lowest fare available for the particular journey (greatbritishrailsale.nationalrail.co.uk, 2022). When a participating company does not provide an advance ticket, it usually offers off-peak tickets as the alternative. It might however apply to booking fees. As it is solely an online sale, passengers requiring assistance or having particular accessibility requirements must contact the relevant train company.

Marketing Mix Analysis

Children aged between five to fifteen years usually get a discount of 50 percent on most of the tickets (Titheridge et al. 2014). Children under five years can travel free with a fare paid passenger. Children looking 16 years or more should carry age proof for purchasing tickets and avoid any kind of embarrassment. Child-rated photocards are also made available to ensure the free charges for the children from the staffed stations of National Rail. It remains valid till the 16^th birthday of the child. Only a pass-port-sized photograph is necessary. When a passenger is registered blind or a visually-impaired and happens to be traveling with a companion, or there is a need for remaining in the wheelchair during the entire journey. Discounts can be obtained on the Anytime tickets (nationalrail.co.uk, 2022)

Promotion: The National Rail streamlines exclusive footage of railway journeys through the social media platform YouTube. Passengers can sit back and enjoy the eye view of the driver of some of the most outstanding picturesque railway journeys. As far as the promotions are concerned, the National Rail provides special offers on the train travel to some of the greatest British destinations. It also offers unique offers on certain attractions of the UK (nationalrail.co.uk 2022). Some of the chosen destinations where special travel offer is applicable include Bristol, Bath, Leeds, Chester, Sheffield, Newcastle, Nottingham , Birmingham, Southampton, Manchester, Bournemouth, Leicester, Edinburgh, York, Blackpool, Gatwick Airport,  Blackpool,  Oxford, Norwich, Lincoln, Portsmouth, Reading, ???????Liverpool, Glasgow, Cardiff and Brighton. Some of the destinations of Wales include Cardiff, Barmouth, Prestatyn, Rhyl, Swansea, Carmarthen, Llandudno and Aberystwyth. Scotland destinations include Dumfries, Dundee, Motherwell, North Berwick, Edinburgh, Aberdeen and Glasglow.

Strength: The strength of the National Rail lies in the fact that it ensures more than a journey. Thus, when things do not go according to plan, customers seek the best possible information through the National Rail website. There are additional measures that National Rail can undertake to keep the customers informed particularly during the disruption. The companies operating the trains across the industry have also been aware of this. Hence, the Network Rail, and Rail Delivery Group, along with all the train operating forms, worked closely to ensure ‘smarter information’ and ‘Smart Journey Program’. This program focuses on achieving a stepwise change via provisions of effective customer information and by providing the customers with all necessary information, they seem to require irrespective of how and when they require it (de la Fuente, Mazumder and Franco 2014). In supporting the drive for the improvement of the passenger information, there has been a collection of the pledges related to customer information developed by the industry in setting the commitments to the information provided either during the disruptions or improvements made to look into the future. These pledges seem to be used as the framework for delivering the correct, timely and constant information for aiding in making well-infomed decisions related to travel (nationalrail.co.uk 2022).

According to Bust et al. (2016), the strength of the National Rail also lies in providing real-time information related to the Journey Planner, alerts that are sent solely to the registered customers, and access to the train tracker service adoption of automatic service of the voice recognition, message version of the train tracker is also available that sends SMS, boards for departure, which is a web-oriented board for the departure. It also puts across a journey planner used by the advisor of the contact center.

SWOT Analysis

It is to be noted that with an increased number of people choosing to travel by train, there is a need for the railway industry to provide faster, more accurate and impartial information which happens to have been quite significant (Schivelbusch 2014). Hence, planning the journey becomes vital. National Rail seems to be a leader in maximizing the communication technology for providing access to the information both in advance to travel or during the journey. With the demand for the customer toward more minute information, it became vital for National Rail to undertake a continuous process for improving the service delivery.

Weakness: The weakness lies in the inconvenience caused to passengers due to canceled or delayed service (Bešinovi? et al. 2019). It allows the passengers to claim compensation from the train operating company that the passenger seems to be traveling with. The compensation is dependent on the choice of the train company. It is because varied train company seem to have different schemes of compensation but allows in claiming when one is delayed. It also depends on the kind of ticket. This is because the compensation depends on what the passenger has paid so it might be differently calculated based on the kind of ticket being used. For instance, a season ticket of 7-days shall not have the same award for the compensation as the single based on an off-peak day. The third factor lies in the length of delay in reaching the destination. Train companies come with a threshold for compensation mentioning when they hold the liability for paying the compensation. Each of the train firms shall make the passengers aware of their threshold as is mentioned in the passenger charter and made available on the website.

Opportunities: This can be enjoyed by involving in the partnership with the Government which will enable National Rail to identify and address any kind of dispute without any impact on the rail and the ticketing services that shall enhance the trust for the reliable source. Research indicates that return journeys across the UK of around 50 miles are more convenient and faster by train (Harvey et al. 2014). Various case studies indicated that traveling by car proved cheaper with a substantial amount of savings for a journey between London and the New Castle. It puts across an opportunity for the National Rail to reduce the fare cost and focus on securing a rise in the passenger demand.

Threats: The reputation of the National Rail is often impacted by the service disruptions that the TOC causes. It is usually in the form of delayed service or cancellations. In such instances, they usually compensate the passengers for the losses incurred. The National Rail comes with online refund systems for automatically facilitating the refunds for delays. In addition to this, National Rail also faces huge competition from similar kinds of operators.

Conclusion: 

On a concluding note, it can be said that National Rail needs to have strategic priorities based on the analysis of the present situation. With the services getting disrupted, the train operators and the Network Rail seem to implement varied measures for helping the passengers in remaining committed and do better. Hence, there requires to be an industry plan for the improvement of the passenger information during the disruption. Based on the inputs from the passenger focus and Office of the Rail Regulation presently known as the Transporte Focus and Office for the Rail and the Road (ORR), the following strategies can be adopted:

• Clearer And Increasingly Valuable Information To The Customers While Planning The Journeys:Compared to the present day, this shall take into account pronounced warnings of the disruptions on the website, mobile devices and the apps. It also involves providing effective explanations of what seems to be happening and the duration of the event with more effective updates regarding what can be done to fix the issue.
• Providing Consistent And More Accurate Information Regarding The Trains Running Across All The Media And The Channels: National Rail must accomplish the complicated task of providing information to the customers and ensure it remains powered by the real-time system for making the best use of the various resources of the operational data. It will hold irrespective of the medium used by the customers. Be websites, apps, trains or stations.
• Providing More Personalized Information as Per the Needs of Customers: This will allow the customers to login in for effective information regarding the delays that impact their particular journey both before the travel and afterward. When affected, it will allow them to derive effective information on when they shall be eligible for using the tickets or know about the trains, their routes and the time required for the refund.
• Effective Information to the Customers for Boarding Train in Normal Times and During Disruption:The onboard screens, which are on-demand, inform the customers about the train’s location while on its journey, whether they are punctual, thus providing connection and the platform information at the station interchanges. Staff, be it on the board or being operational from the control room, shall make prior announcements about the occurrence of disruption thus keeping the customers informed regularly.
• Providing Effective Assistance for the Better Equipped and the Effectively Trained Staff:There is also a need for a constant review of the staff devices along with effective communication from the control rooms to the front-line worker to ensure their access and the correct information for the job role along with the promotion of the good practice in the rising usage of the social media.

Conclusion

It is also to be noted that due to the pandemic created by the Covid-19, the advice and restrictions of the government on travel reduced the number of passengers between the years 2020-21 to the lowest level. During 2020-22, around 388 million journeys via rail took place in Great Britain which is only just more than 22 percent of 1.7 billion of the journeys carried out in the previous year. With fewer people utilizing the railways, there also had been a dramatic fall in the revenue. According to ORR, the revenue collected from the passengers between 2020-and 21 amounted to around £1.9 billion during the period which was just around 18.3 percent more compared to the generated revenue in the year 2019-2020. However, the service was made to continue through emergency interim-based contracts that changed the financial mechanism by shifting the revenue risk and the cost of running the rail services by the train operators towards the government. On September 21, 2021, the government introduced interim contracts known as the  Emergency Recovery Management Agreements (ERMAs). The contracts had been intended to run up for close to  18 months (till March 2022). The government described the agreements as the tougher targets for performance (researchbriefings.files.parliament.uk 2022). Thus, there is also a need for the operators to cooperate better while undertaking measures to drive down the higher capital cost of railways. Some of the strategies include:

• Maintaining lower fees for management and set it at the maximum of around 1.5 percent of the cost base as was the case before Covid-19 pandemic
• Running a complete service for ensuring the existing space for aiding the passengers in traveling safely.
• Accepting the ERMA’s like the Rail Delivery Group so that it can be used as the path for a cost-effective railway would involve both the private sector in an effective manner. This move is expected to receive much criticism from the labor party and the rail unions since they believed it to be a papering act over the cracks and shall urge the private operators to be removed from the provision of the rail service.

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