Railway Ticket Refund Fee Reduction Proposal: FAS Suggests Capping Refund Charges at 10%
In a bid to increase ticket availability and combat ticket scalping, the Federal Antimonopoly Service of Russia (FAS) has implemented a new regulation on ticket fees in Russian railway transport. The regulation aims to control and limit fees charged by intermediaries or operators during the ticket purchase process.
The key aspect of the regulation is the cap on the service fee that operators can charge, which is set at up to 15% of the ticket cost. This fee covers intermediary services and business support expenses but aims to prevent excessive markups that can lead to scalping and reduced accessibility for ordinary passengers.
By capping service fees, the regulation discourages third-party sellers from inflating prices beyond reasonable levels, ensuring that tickets remain affordable and accessible to the general public. Furthermore, the system includes a time limit (15 minutes) for completing payment after reservation, which helps reduce the risk of holding tickets without purchase — a common tactic in scalping to artificially limit ticket availability.
The regulation achieves its goals by limiting intermediary service fees to a maximum of 15%, enforcing a payment time window to avoid artificial reservations that block genuine buyers, and ensuring transparent and fair fee practices to maintain affordability and wider access to train tickets. These measures together help promote fair competition, reduce scalping activities, and improve ticket availability for passengers on Russian railways.
In addition, for 65% of passengers, the fee will be lower than the 2019 level, adjusted for inflation. If seats become available, the applicant will be notified of the opportunity to pay for the reserved seats. However, the FAS does not provide details about the impact of the fee on the remaining 35% of passengers.
Moreover, the regulation addresses the issue of unscrupulous intermediaries who have been purchasing tickets in large quantities and reselling them at the last minute, causing issues for passengers planning trips. Despite this, there is no information about any penalties or regulations imposed on intermediaries for ticket reselling practices. RZD has not disclosed the specific number of intermediaries involved in ticket reselling.
In conclusion, the FAS regulation is a significant step towards enhancing the fairness and accessibility of Russian railway tickets. It not only aims to increase ticket availability but also to combat scalping activities, ensuring a more equitable distribution of tickets for passengers planning their journeys.
The new regulation on ticket fees in Russian railway transportation set by the Federal Antimonopoly Service of Russia (FAS) has extended its scope beyond the rail industry, affecting also the finance and transportation sectors. The regulation aims to control and limit fees charged by intermediaries or operators in the entire ticket purchase process, not just within the rail industry.
Furthermore, the system includes a provision for the notification of available seats to the applicant if seats become available after initial reservation. This feature can potentially open opportunities for passengers to purchase tickets in other sectors such as aviation or public transportation, making tickets more accessible across various modes of transport.
