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Firstly, there are 1 million people out there with free travel passes who can just rock up whenever they like and jump on any train for free. On off-peak services this probably accounts for 50% of the business.
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Just because you have a pass it doesn't mean you have to get a seat. If you want a seat then pay for it online or take the chance and hope for the best. Moving to 100% reservation would be good as many pass holders will bring in revenue for IE as many will reserve a seat when they can't just rock up on the day.
I the pass side, the reduced DART's must be having some benefit, surly pass holder numbers traveling have dropped especially at peak times?
Are IE doing anything about the pass numbers, ie asking for peak restrictions or a small fee per passenger. You don't get everything free on the medial card, so the same should happen for passes.