Isle of Wight Guru (IWG), Robbie Lane, has shared some interesting findings in relation to ferry price comparisons between 2013 and 2023.
The research comes as IWG celebrates its ten-year anniversary. Back in 2013 Robbie had looked at ferry fare comparisons for specific journeys at the height of the season in August, as well as during October.
He thought it would be interesting to see how they’d changed in ten years later and shared the results with News OnTheWight.
As we know, ferry pricing is fluid (like the easyjet model) so Robbie queried the 2023 ferry prices (for August and October) at the same time of the year as he did in 2013.
Summary of findings:
Excluding the impact of inflation:
- The sample of Wightlink’s fares that were looked at have increased by 87 per cent over ten years.
- The sample of Red Funnel’s fares that were looked at have increased by an average of 80 per cent over ten years.
Including inflation
IWG also did the maths with two forms of inflation considered – CPI (Consumer Price Index) and RPI (Retail Price Index).
Difference between CPI and RPI
The CPI is currently favoured by the Government and is described by The Times as, “The retail prices index is the older measure of inflation between the two and typically comes out highest.” They show, as of March 2023: RPI at 13.5% and CPI, 10.1%.
Using Consumer Price Index
Based on the data IWG looked at, Wightlink has increased its prices by near half (+45 per cent) above the CPI rate of inflation over the last ten years.
Whilst Red Funnel has increased its prices by +39 per cent above the CPI rate of inflation.
Using Retail Price Index
The Wightlink fares that were looked at have increased by +27 per cent above the RPI rate of inflation over ten years.
Red Funnel’s fares have increased by +22 per cent above the RPI rate of inflation over the same period.
There were quite a few cavaets that applied to the price comparisons. You can read about those in more detail over on IWG’s Blog post.
Response from ferry companies
News OnTheWight wrote to Red Funnel and Wightlink for their comment on IW Guru’s findings.
Red Funnel told News OnTheWight their finance team was going back through ten years of ferry prices and would get back to us ASAP, along with a comment.
Wightlink failed to respond before publishing.
Collins: We work hard to offer reduced rates for Islanders
Fran Collins, CEO at Red Funnel, said,
“The comparison table features a small sample size of individual ferry crossings and is not an accurate reflection or like-for-like comparison of pricing over the last 10 years, which has fluctuated in line with the economic climate and market requirements.
“We review our ticket prices regularly to ensure a sustainable business that supports the Isle of Wight, its residents, and its economy, and we consider all relevant factors. In recent years, these have included ongoing reduced demand due to Covid-19, supporting essential travel to and from the Island, the rising cost of fuel, supply chain disruptions, and the need to stimulate the Island’s tourism economy, amongst others.
“We work hard to offer reduced rates for Islanders and to support local industry and initiatives, and we are fully committed to delivering a sustainable lifeline service to the Isle of Wight.”
Article edit
8.15am 27th Apr 2023 – Comment from FC added.
