Dolph said:
If they are in a competitive market they do, otherwise their competitor will and will take their business.
The problem we have is that our privatised rail network is NOT a competitive market - infact the terms of many of the franchise agreements actually forbid competitive practices. Those few operators who HAVE tried to genuinelly compete have normally found themselves run into issues.
Case in point - what used to be First North Western ran Manchester to London services, but were subject to so many ridiculous restrictions designed to ensure the Intercity Westcoast (Franchise holder Virgin Trains) franchise was not affected that the service stopped a year or two after it started becuase it was largely pointless.
You also, specific cases again excepted, don't generally buy a ticket from one TOC for use on one TOC. The most popular ticket type, a Route Any Permitted, allows the use of any reasonable train to reach your destinition irrespective of operator.
The whole system is pointless as a privatised network, there will never be true competition and many of the private companies draw more in subsidies than the equivilant sector of British Rail.
Did you know, for example, that in BR days although the CrossCountry region of Intercity made an operating loss (Due to the nature of the routes), the Intercity Sector overall returned an operating profit despite also itself subdising the loss making regions?
Now it's all split so the huge cash-cow Intercity routes, ie East Coast (GNER) make huge amounts of money (Good move there Sea Containers, East Coast Franchise was a guaranteed cash-cow given just months before the Railways Act 1994 was passed a multi-million pound electrification and new train program had just been completed) whereas Virgin CrossCountry requires huge subsidies.
Joy.