Serco and leasing company Beacon Rail will procure a new fleet of coaches worth more than £100m from CAF, Spain, which are expected to enter service in 2018, replacing the existing fleet of Mk2 and Mk3 vehicles. Serco says the new coaches will include en-suite berths, pod flatbeds, and a brasserie-style Club Car.

The investment in new rolling stock is being funded by Transport Scotland, which will provide £60m for the fleet, and the British government, which is contributing £50m towards the modernisation of the service.

Serco will also introduce a new website which will offer a broader range of fares, allow earlier booking, and enable passengers to manage their journeys online.

The Caledonian Sleeper is currently operated by FirstGroup as part of the ScotRail franchise. FirstGroup and Arriva submitted bids for the new sleeper franchise.