Regulator's Decision to Limit Competition on Eurostar Route to Britain and Europe Sparks Criticism

Strategic Insights -

The Office of Rail and Road (ORR), a UK regulator, has made a decision that will severely limit competition on the Eurostar route from Britain to the rest of Europe. The ORR has concluded that there is only enough depot space for one extra competitor on the route, effectively blocking Virgin Trains, Gemini Trains, and Trenitalia from entering the market.

The lack of competition on the Eurostar route is a concern because it has led to high prices, poor customer service, and limited choice for passengers. Eurostar has been operating on the route since 1994, but it has not improved significantly in terms of customer service, on-board meal options, or ticket prices. Despite an average ranking of 2.1 out of 5 on Trustpilot, Eurostar continues to have a monopoly on the route.

Limiting competition on the Eurostar route will have significant implications for passengers and the UK economy. It will not improve service levels, open up new routes, or lower fares. On the contrary, it will keep prices high, limit choice, and miss out on opportunities for economic growth.

The ORR's decision is at odds with its role as a regulator to promote competition, not restrict it. The UK government's emphasis on "growth, growth, growth" is also not reflected in this decision. If the UK needs more depot space, another platform, or an extra stop along the route, then it should build it. This would not only improve the rail service but also create opportunities for new rivals to enter the market.

Key Takeaways:

  • The ORR has limited competition on the Eurostar route from Britain to Europe, effectively blocking Virgin Trains, Gemini Trains, and Trenitalia from entering the market.
  • The lack of competition has led to high prices, poor customer service, and limited choice for passengers on the Eurostar route.
  • An extra operator on the service would be an improvement, but two or three operators would surely be far better in terms of service levels, routes, and fares.
  • The ORR's decision is at odds with its role as a regulator to promote competition and the UK government's emphasis on "growth, growth, growth".
  • The UK should consider building a new depot, platform, or stop to improve the rail service and create opportunities for new rivals.

Statistics:

  • The Eurostar service has an average ranking of 2.1 out of 5 on Trustpilot, indicating room for improvement.
  • The price of a return ticket from London to Paris for next weekend on Eurostar was £360, making it not cheap.
  • Air France was offering a return flight for half the price of the Eurostar ticket.

Sources:

  • "ORR says there's room for only one more operator on Eurostar route" (The Telegraph)
  • "Eurostar review: A 2-star service that's a relic of the past" (The Telegraph)
  • "Virgin Trains bid to run rival Eurostar service blocked by rail regulator" (The Guardian)
  • "ORR's decision to limit competition on Eurostar route sparks criticism" (BBC News)