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Friday, 22 December, 2000, 14:05 GMT
Service stations: 'poor value'

Complaints about value for money offered at motorway service stations in the UK are justified, says the Office of Fair Trading (OFT).

But the owners and managers of the industry, which provides rest, refreshment and refuelling stops along the UK's motorway network, are not behaving anti-competitively, the watchdog said.

"Consumers are justifiably concerned that motorway service areas offer poor value for money. But we have not found evidence that operators are earning excessive profits or deliberately restricting competition," said John Vickers, director general of the OFT.

There are therefore insufficient grounds for a reference to the Competition Commission and a possible shake-up of the industry, the OFT said.

The probe was launched following complaints from motorists about the prices charged in cafes, restaurants and shops.

Why are prices high?

The typical service station has a buffet style restaurant, burger bar, newsagent and general store plus petrol station and games room.

The companies managing the service areas are responsible for the expensive construction and maintenance of the forecourts.

The absence of excess profits combined with high prices largely reflect these additional costs, the OFT concluded.

"Motorway service areas are unusual in that road safety considerations and highway regulations affect their cost structure, the amount of retail space they are allowed to offer, their product range, ease of market entry, and the ability of the operators and their rivals to advertise," said Vickers.

What can be done?

But the OFT said that more can be done to improve and promote value for money and customer service.

"Subject, of course, to road safety, I would also like to see greater opportunities for motorway service areas and off-motorway rivals to advertise their services," said Vickers.

"If drivers are aware of alternatives, the motorway service areas will be under more pressure to improve their services," he said.

"The OFT will be talking with the Highways Agency, the motorway service area operators and others to see how to promote competitive pressure on the operators without jeopardising motorway safety," he said.

The OFT pointed out that there have been some improvements in motorway catering in the past few years as site ownership has changed and as the voice of the consumer has been heard to a greater extent than in the past.

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20 May 99 | The Economy
Motorway services price probe
22 Dec 00 | UK
UK Christmas travel update
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