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PSA, the cost of a tram ticket in Nottingham is going to be increasing from April
This comes after the operator’s electricity costs previously increased by nearly 700 per cent
Tramlink, the group of companies behind the Nottingham Express Transit (NET) network, have said the prices of some tram tickets will increase from April.
Tramlink says there has been an increase in usage across the NET network in the last few months, but it is still dealing with changes in behaviours as a result of the Covid pandemic.
This decision has come a month after the Government have extended the £2 bus fare cap, in order to increase public transport usage to Pre-COVID-19 levels.
During a Nottingham City Council tram meeting on March 14th, concerns were put forward to Tramlink over an increase in ticket prices, and how this may prevent people from using the tram services again.
Tramlink have not yet disclosed the exact rises of ticket prices.
One advisory member at the meeting said: “Earlier we said, in the value area, people are perceiving the tram as expensive and that is a barrier to increased patronage, and they’d be one of the factors in the reduced patronage of the tram.
“Then you said there was a price increase in April. To me that is incongruent because if we are already struggling to get people in, I think maybe that is going to drive some people away and erect another barrier.
“I am worried about that.”
Andrew Conroy, the chief operating officer for Tramlink, said there is no “easy answer” to getting people to use the tram, but said he did not feel price rises would have an impact.
He said: “We’ve done everything that we possibly need to do to check the elasticity of a fair increase is at the right level,
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“Elasticity, basically, is if you put the prices up too high, then you hit a peak and you have lost so many customers the price increase doesn’t make any impact.
“Our costs have gone up by nearly 11 per cent, so that’s happening. Our electricity costs have gone up by nearly 200 per cent.
“Second to that at one point it was nearly 700 per cent. So it is very, very difficult.
“I don’t want to be sat here in six month’s time, I don’t think I will be, saying we’ve lost patronage.”
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