New studies published by FirstGroup’s open access rail operators, Lumo and Hull Trains, highlight the positive impact of these services on passenger numbers, revenue, and the wider rail industry. Unlike franchised operators, open access services receive no government funding, relying solely on revenue generated through ticket sales. They often operate in underserved areas, focusing on the needs of their local communities and customers.
A study by Winder Phillips, “The Impact of Open Access Operators on Industry Revenue and Journeys,” examines the success of open access operations in increasing journeys and revenue. Focusing on Lumo, Hull Trains, and Grand Central, the report cites faster journey times, direct routes, increased frequency, and competitive fares as key benefits.
The report found that Lumo has generated over six million new rail journeys, encouraging a switch from air to rail travel. Hull Trains, celebrating its 25th anniversary, saw a near 300% increase in revenue on London to Selby, Howden, Brough and Hull journeys in its first ten years, generating approximately £30m for the railway. More recently, Hull Trains has experienced a 42% rise in passenger journeys since 2018/19, outperforming all other UK rail operators.
A second study by Arup, “Open Access Operations Paying Their Way,” details the contributions of these operators to the UK rail sector through industry charge payments. While open access operators don’t pay the same charges as Department for Transport-managed franchises, they operate under a different charging regime. The report shows that in 2025/26, Lumo will pay around 10% more per train mile than LNER and about 35% more than Avanti West Coast. The study also considers how these services connect communities, increase job opportunities, and reduce carbon emissions.
FirstGroup and Hitachi Rail recently announced an order for 14 new five-car electric, battery-electric, or bi-mode trains. These trains will be manufactured by Hitachi at their Newton Aycliffe site in County Durham, creating jobs and supporting local manufacturing skills. Deliveries are expected to begin in late 2027.
Martijn Gilbert, Managing Director of FirstGroup’s Open Access operations, said: “These studies clearly demonstrate how open access operators are paying their way, generating passenger journeys and revenue. We have a proven track record of finding and reliably operating in gaps in existing timetables, efficiently using spare capacity in the network…and which doesn’t increase the fixed costs of the railway or place any additional burden on taxpayers.”
He added: “As the Railways Bill Consultation is issued, it is important that this well-loved part of the railway can continue to operate and grow alongside Great British Railways. With our applications to expand, Lumo and Hull Trains [are] able to quickly deliver further economic growth, playing an important part in a successful railway for the benefit of all rail users and the communities we serve.”
You can read the new reports here: Winder Phillips: “The Impact of Open Access Operators on Industry Revenue and Journeys” and issued by Arup: “Open Access Operations Paying Their Way”
