The cost of train tickets is driving many leisure passengers off the railways, a major survey from a rail watchdog reveals today.

Seven out of 10 leisure passengers had "decided not to travel by train because of a cost of a ticket" at some point in the past, with 44% of those choosing to travel by car instead, the poll from the Passenger Focus group showed.

Some 80% of leisure travellers and 70% of business passengers said they would travel more on trains if fares were a bit cheaper. Meanwhile, three in five commuter and business passengers and 50% of leisure passengers thought tickets were generally not fairly priced.

The findings are based on the questioning of over 2,000 passengers across Britain and were published today as Passenger Focus brought out its annual report. Created by the Railways Act 2005 and operational since January this year, the independent consumer body represents the interests of rail users and is sponsored by the Department for Transport.

Its survey also revealed that 40% of business passengers and 30% of commuter and leisure travellers were not confident of being able to find the best-value ticket. Ticket machines and travel agents were trusted by fewer than half of all passengers.

Concerns were also raised over season tickets, with 19% of commuters saying they did not provide good value for money and 11% saying they could not afford them.

Launching the annual report today, Passenger Focus chairman Colin Foxall said: "Passengers are finally experiencing the sustained delivery of an improving railway. Last year, passenger satisfaction was at an all-time high, trains were more punctual and passenger numbers continued to grow.

"But passengers are rightly becoming more demanding and are increasingly concerned with value for money and fares."

He went on: "Our research shows that the balance between book-ahead and turn-up-and-go rail travel is crucial. As train companies seek to maximise income and cope with growing passenger numbers, there is a danger we shall lose the affordable walk-on railway that many passengers value.

"Our research also shows that some people decide not to travel because of cost, and some people on lower incomes are deterred by the upfront cost of a season ticket, which puts value-for-money travel out of reach."

Mr Foxall said his group would be working with the Department for Transport and the Association of Train Operating Companies to review the regulation of Saver tickets and put forward proposals for a simple, accessible structure for rail fares.

George Muir, director-general of the Association of Train Operating Companies, said: "We are listening to passengers and we welcome this research which provides useful insights into passenger thinking on fares.

"We are already working with Passenger Focus and the Department for Transport (DfT) to develop a simpler and more consistent fares structure where necessary and improve the presentation of fares. In doing so, we are making use of this research as well as conducting our own focus groups."

He continued: "For instance, passengers can expect to see improvements to the way fares are presented on the National Rail website during the first part of 2007.

"The walk-on railway is alive and well. Hundreds of thousands of short and medium-distance journeys are made successfully every day which require absolutely no advance booking."