Low cost rail could disrupt the sector in the UK (photo by Kai Bossom) Low cost rail could disrupt the sector in the UK (photo by Kai Bossom)

Low cost rail disruptor

Lumo’s launch of low-cost rail services could disrupt current rail and air services between London and Edinburgh. Its low-cost model alongside a focus on minimising environmental impact will bode well for shifting traveller trends as the sector recovers from the pandemic, says GlobalData.

Gus Gardner, associate travel and tourism analyst at GlobalData, says British travellers have become accustomed to high fares and low-quality services that, pre-Covid, were often overcrowded.

‘Even though it is low-cost, free wifi and on-demand entertainment will be available to all. With journey times only 10 minutes longer than the incumbent LNER, Lumo is positioned to make gains in the competitive marketplace.’

A live GlobalData poll shows 11% of global respondents now have a holiday budget lower than pre-Covid, and 37% cannot afford to go on holiday in the
near future.

Similarly, the findings of GlobalData’s Q2 2021 Consumer Survey reveal that 62% of UK respondents were ‘extremely’, ‘slightly’, or ‘quite’ concerned about their personal financial situation, further reinforcing the need for lower cost rail services.

‘Lumo’s £15 one-way lowest fare option could stimulate travel demand between London and Edinburgh. The low fares are set to be cheaper than a low-cost flight and could place competitive pressure on easyJet and, to some extent, British Airways.’

ProMag