Latest news with #Lumo
Telegraph
2 days ago
- Business
- Telegraph
Britain's ‘Ryanair of the rails' may not be glamorous, but it could teach rivals a thing or two
The British train operator which has garnered a reputation as the 'Ryanair of the Rails' does indeed have, it seems, a lot in common with the budget airline that so many passengers love to hate. Lumo, which just under four years ago launched its inaugural service between London and Edinburgh, does indeed have consistently lower fares than the main operator on the route, LNER. It has ambitious plans for growth, too. Having increased services to Edinburgh from two trains a day to five, it recently announced the intention to introduce a new direct link between London and the Scottish city of Stirling, with a further expansion of routes down the line. And like the Dublin-based low-cost airline, its no nonsense one-size-fits-all approach has its detractors, with reviews on platforms such as TrustPilot frequently highlighting issues with cleanliness, punctuality, inadequate provision of refreshment and staff whose brusque manner seems to have come straight from the Michael O'Leary's customer relations playbook. Much of this is hardly surprising. When Lumo began services between London and Edinburgh in October 2021, it unashamedly proclaimed its intention to undercut rivals on the route and to provide real competition to the budget airlines – namely Ryanair and easyJet – which operated between the two cities. In addition to low prices (many of its introductory fares are less than £20 one-way), it gave travellers seeking to reduce their carbon footprint a more environmentally friendly option, with a fleet of all-electric Hitachi trains offering high speeds and low emissions. Potential game changer Mark Smith, the rail guru behind the Man in Seat 61 website, hailed the arrival of Lumo – which was given permission to run the London-Edinburgh route as an 'open access' operator – as a potential game changer. 'For years the high cost of rail travel has been cited by those turning to the cheaper options offered by airlines, but the arrival of Lumo could change all that,' he said. 'Finally a London-Edinburgh train will take on the likes of easyJet and Ryanair at their own game. It is a pioneering move and, if successful, it could encourage others to set up low-cost rail routes and put pressure on the government-backed train operators to reduce fares.' So has Lumo lived up to its early promise? And what's it like to travel on? Reading the TrustPilot reviews, I feared the worst when I boarded the train for a journey to Edinburgh with my wife – a decision taken because, yes, I wanted to test Lumo out but, crucially, because it was considerably cheaper than LNER. The train was certainly busy, with all seats taken and every available space for luggage used to the full. The seats themselves, an attractive deep blue, may not have allowed long leg stretches, but were comfortable enough – and not dissimilar space-wise to those found on more mainstream operators. The drop-down table and individualised lighting were perfectly functional; there was WiFi too, but as with many trains, it was intermittent. We did not feel the train was dirty, though others have pointed to mess on the floor and stained seats. Nor did we experience the rudeness for which Lumo staff have frequently been criticised (in fact, we even managed a joke with the ticket inspector). And of course the views along the way – particularly the later stretches, taking in the Angel of the North, Durham Cathedral and the beautiful stretch of Northumberland coastline on the approach to Scotland – were, of course, every bit as splendid as they would have been on a more expensive train. We arrived in Edinburgh bang on time. No complaints. Unacceptably dirty Maybe we were lucky. Rory Boland, the editor of Which? Travel, also recently travelled with Lumo and had more grounds for complaint. On his trip to Edinburgh, he found the train unacceptably dirty, announcements bordering on the hostile, staff manhandling bags placed in the wrong places and, most egregiously, a failure in the tea service, usually available via an on-board trolley. He did acknowledge, however, that Lumo's fares, while not as low as originally indicated, were less than those quoted by LNER. The cheapest fare he found was £91 return – a good £44 less than the lowest offered by LNER for the same period. With very few stops (Morpeth, Newcastle and, on some journeys, Stevenage), the trains are also faster: the best completing the journey to Edinburgh in just 4 hours 16 minutes. And the Ryanair parallels continue: though passengers love to complain about Lumo, they nevertheless continue to use the service in their droves. So much so, in fact, that the operator – which is owned by FirstGroup – announced earlier this month that it plans to launch a new direct service between London and Stirling, commencing next year. Furthermore, in what will be a significant challenge to an increasingly nationalised rail network, it has applications to run trains from London to Rochdale, Carmarthen and Paignton. The aim is to triple passenger numbers to 10 million a year. According to Simon Hodge, managing director of specialist operator Tailor Made Rail, this is all for the good, as it might help to create some 'healthy competition' on the proposed routes – as operators Italo and Iryo have in Italy and Spain respectively – which would likely reduce fares and benefit passengers. In fact, even Boland had a positive take, concluding that though 'the boarding experience with so many people and luggage being thrown around is chaotic, and dirty seats and no tea made our trip feel budget', Lumo is nevertheless 'fast, far better for the environment than flying and, perhaps crucially, by far the cheapest option.' So, lower fares and, soon, a direct service from London to one of Scotland's finest cities? Lumo might feel budget, but if the rise of the budget airline has proved anything, it's that – for most of us – cost and convenience will always trump comfort. A bit of healthy competition never hurts.
The Herald Scotland
2 days ago
- Business
- The Herald Scotland
Safestay boosted by hostel openings in Glasgow and Edinburgh
Safestay gave no further details but noted: 'The Company does not currently anticipate operational or headcount changes arising from any such freehold disposal.' The announcement indicates that Safestay may be considering a sale and lease-back type deal, which would allow it to raise cash that could be used to fund acquisitions. House broker Shore Capital said Safestay was well-positioned for growth in what it described as a highly attractive segment of the global hotel industry. Hostels are popular with young travellers. READ MORE: SNP Government renewables fixation absurd after windfarm switch off bill soars Safestay has highlighted the potential of the Scottish market by opening hostels in Glasgow and Edinburgh in recent years. It converted the Best Western Glasgow City hotel on Elmbank Street near Charing Cross Station into a hostel after buying it for £3.15m in 2019. The company opened the Edinburgh Cowgate hostel in 2024 on the site of a property that it bought for £4.3m in 2023. The company has five hostels in the UK including outlets in London and York. It has hostels in a range of other countries including Spain and Italy. Analyst Greg Johnson at Shore Capital said Safestay was well-funded and had a track record of successful asset recycling. READ MORE: Crude price could hit $100 per barrel amid Middle East conflict escalation risk Mr Johnson noted that at the end of June 2024, Safestay's portfolio of seven freehold and long leasehold properties had a valuation of £50.1m. The properties in Glasgow and Edinburgh were valued at £4.9m and £4.3m respectively. Safestay has a stock market capitalisation of around £16m. The company said there could be no certainty that the disposal it is considering would proceed and advised shareholders to take no action. Shares in the firm closed at 25p yesterday, unchanged on the day. They sold for 21p in May. READ MORE: FirstGroup hails success of Lumo trains ahead of Scottish route launch The company is led by sector veteran Larry Lipman who is managing director of the London-based Safeland residential property investment business. On Monday Safestay said it had been awarded a £1.4m insurance payment in respect of the interruption to its business during the Covid-19 pandemic.
The Herald Scotland
12-06-2025
- Business
- The Herald Scotland
Scottish bus company ditches 'employee director' post
It added: 'As the UK bus and rail industries enter a period of significant change and we restructure the group accordingly, the board has reviewed the framework for engaging with colleagues and providing employee feedback to the board. Read more 'Going forward, in place of an employee director, the group will have a designated non-executive director. Following the group's AGM, Myrtle Dawes will be the designated non-executive director to ensure that the voice of the workforce is heard in the boardroom.' Lena Wilson, who chairs FirstGroup, said: 'I would like to express my thanks on behalf of the group and the workforce to Ant for his contribution to the board over the last five years and the insights he has provided. I look forward to working with Myrtle in her new role to ensure the board continues to be well briefed on the views of colleagues when taking decisions.' FirstGroup earlier this week highlighted the success of its Lumo trains between Edinburgh and London as it plans a major expansion of services linking Scottish cities with England. The company reported underlying pre-tax profits of £222.8 million in the 52 weeks to March 29, up from £204.3m in the prior financial year. Profits at First Bus rose by £12.4m to £96m. First Rail's profits increased by £5.5m to £148.8m. Chief executive officer Graham Sutherland said: 'I am pleased to report another positive set of results for our 2025 financial year. We have further strengthened our businesses and continued to deliver against our strategy, including growing and diversifying our earnings in both First Bus and First Rail. "This leaves us well placed to at least maintain our adjusted earnings per share in FY 2026, from a stronger base, as we continue to successfully navigate a period of transition in bus and rail in the UK."
Daily Mirror
12-06-2025
- Business
- Daily Mirror
Impressive 425-miles UK train line with 11 stops branded 'Eurostar of Scotland'
Brits will soon be able to hop on board and travel more than 400 miles from London to the historic city of Stirling, thanks to a new railway expansion slated to launch in 2026 A huge railway expansion touted as the 'Eurostar of Scotland' is slated to launch next year - spanning a whopping 425 miles from London. Rail operator Lumo recently announced it had successfully secured five Class 222 six-car trains to link London Euston directly to Stirling - a historic city in central Scotland. The new route, which aims to be up and running as early as Spring 2026, will also stop at Milton Keynes, Nuneaton, Crewe, Preston, Carlisle, Lockerbie, Motherwell, Whifflet (serving Coatbridge), Greenfaulds (serving Cumbernauld) and Larbert. Lumo says the move will 'enhance travel choice and connectivity' for passengers along the central belt of Scotland, and that its new route will run five times a day each way. This particular route is already shared by Avanti West Coast, LNER and TransPennine Express - but Lumo will reportedly be the first provider not subsidised by the government. Zoe Adjey, senior lecturer at the Institute of Tourism and Hospitality at the University of East London, told the Metro that this will likely make tickets must 'cheaper'. "The service enhancement will significantly improve the passenger experience, especially compared to air travel," she added. "Air travel requires an initial transit to one of London's airports, followed by a two-hour wait for the flight, then a two-hour flight time. In contrast, rail travel involves just a quick journey to Euston station, followed by a five-hour train journey with WiFi, refreshments, and enhanced onboard services." At the time of writing, direct trains from London to Stirling cost as much as £206.80 for an 'Anytime Single' ticket. However, they can be bought for as little as £81.80 if you're flexible with dates. Purchasing a railcard can also help lower the cost of train fares. However, these tend to only offer discounts on Off-Peak times, weekends, and bank holidays - which doesn't help out commuters reliant on the network. In an online statement, Martijn Gilbert of Lumo said: "Today's announcement underscores Lumo's commitment to growing Scotland's rail network, providing passengers with more affordable, fast, and convenient travel options. Our new service between Stirling and London has the potential to unlock significant economic opportunities for communities along the route, and we're proud to deliver this direct rail connectivity to towns previously overlooked by traditional rail services." Sue Webber MSP, a Conservative Transport spokesperson, also hailed the announcement - arguing it will bring a staggering £740m in economic benefits by 2032. "Crucially, this is being delivered not by government mandate, but through private sector innovation and open access investment," she added. "That's why I believe this model is one we should be championing. Lumo is not replacing existing services – it's adding capacity, increasing choice, and growing the market for everyone." *Prices based on LNER listings for Tuesday, July 1.
Yahoo
11-06-2025
- Business
- Yahoo
Rail challenger to take on Labour's nationalised trains
Private train operator Lumo is plotting a range of new services across Britain in a direct challenge to Labour's nationalised rail network. FirstGroup, which owns the low-cost rail company, is looking to expand operations after already announcing plans to triple Lumo's passenger count to 10m a year with the addition of five new routes. Graham Sutherland, the chief executive, said FirstGroup is now studying population growth and housebuilding plans to determine where is best to introduce new routes. However, he said the company is particularly keen to restore direct services to London from small towns across the UK, while it is also exploring the possibility of launching trains between poorly connected regional centres. He said: 'Obviously it gets harder the further you get through it, but we feel there are other opportunities still to come out over time. 'Anything we are looking at is commercially sensitive. But the basic criteria is do we think there are under-served areas in terms of rail and do we have an opportunity to drive modal shift and get people out of their cars.' It comes after Labour sent out mixed messages on the continuation of private rail services following the launch of its state-backed railway company, Great British Railways (GBR). Privatised 'open-access' operators, which are not paid by the Government to run services and make their money only from passenger fares, are due to remain in private hands, according to the blueprint for GBR. However, Heidi Alexander, the Transport Secretary, wrote to the industry regulator in January advising it to adopt a more rigorous stance on approving open-access applications. GBR is set to be fully operational by next year. Meanwhile, The Telegraph revealed last month that LNER, which is already government-run, is predicted to lose out on £1bn in ticket sales to private operators offering cheaper fares. Mr Sutherland said open access is no threat to the nationalised railway, claiming instead that competition helps to improve standards and attract new customers. Mr Sutherland added that further routes targeted by Lumo were likely to conform to its existing long-distance model. FirstGroup currently operates open-access services along the east coast main line from Kings Cross to Edinburgh and Hull via Lumo and sister brand Hull Trains, which it plans to extend to Glasgow and Sheffield respectively. A further two new routes are guaranteed, one from London Euston to Stirling, in Scotland, and the other from London Paddington to Carmarthen, in south Wales, after FirstGroup bought access rights from Arriva's Grand Union. FirstGroup has also lodged applications with the Office of Rail and Road to run trains from Euston to Rochdale via Manchester and from Paddington to Hereford and Paignton, Devon. Should the company succeed in expanding to all seven routes, its open-access revenue should jump from £106m to around £300m, Mr Sutherland said. FirstGroup's South Western Railway became the first to be seized by Labour last month and will be followed by its remaining Avanti West Coast and Great Western franchises. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
