hello there,
just wondered if anyone could tell me (or tell me where I can find out) how the fare charged for a ticket is split between train companies: for example I often buy an off peak return from Attenborough to Sheffield priced at £11.10 with a railcard. With there being no ticket office at the station I would buy it on an east midlands train (or occasionally crosscountry) and then change at Nottingham to a Northern rail train (or occasionally EMT). So assuming I bought the ticket on an EMT and then traveled the main leg of the journey on northern who would receive the bulk of the fare?
Alan
Under the Ticketing Settlement Agreement, there are two methods of allocating revenue between TOCs. The first is the ORCATS (Operational Research Computerised Allocation of Tickets to Services) model; however if the parties believe that ORCATS is not allocating revenues correctly the second is for the train operating companies themselves to agree the allocation method. There is a last-resort dispute resolution process in cases where companies cannot agree.
ORCATS is a behavioural model employing mathematical techniques to predict how passengers behave in their choice of train services for a journey. Having predicted how passengers choose between different trains, ORCATS then derives the allocations based on the mileage travelled on each of the services involved. Derived allocations are used as a basis for sharing revenue between TOCs. ORCATS considers the following factors to estimate the split of passengers between train services, i.e. the proportion of passengers choosing a particular train service. All factors were derived from extensive passenger and market research surveys:
- The demand for train travel by time of day and day of week. Demand profiles used by ORCATS show the split of day demand into 15-minute time bands. ORCATS uses separate demand profiles for weekdays, Saturday and Sunday travel.
- Train speed; this is measured by journey time.
- Number of interchanges; the number of times a passenger has to change trains to complete the journey.
- Waiting time; this is measured as the difference between the train start time and the ideal departure time which is taken as the mid-point of each 15-minute time band.
The model considers passenger preferences for speed, number of interchanges and waiting time. It also considers the interaction between the factors, for example, it considers the trade off between speed and waiting time. The model then applies these factors to the train timetable available to passengers between each origin and destination and derives passenger preferences for particular train services.
Revenue allocation does not correspond to loadings, and is purely timetable driven. Under ORCATS, revenue is always allocated to the fastest train, so even if a train is the second to leave the station, if it overtakes another, it receives the full allocation of revenue. ORCATS cannot take qualitative factors into account, for example, where passengers choose to take a slower train because it is perceived as better.
Furthermore ORCATS does not take account of capacity constraints. If a train is full or nearly full by the time it arrives at a station, ORCATS continues to allocate revenue to that particular service. Because the system is timetable driven, situations such as ORCATS raiding can occur, where extra trains are slotted in front of another operator’s and thus their revenue is reallocated.
To answer the OPs question directly, the retailer who administers each ticket is entitled to commission from each sale. This varies depending on the method of purchase, but if a ticket is purchased on train, the rate of commission is the National Standard which is 2% for Season Tickets and 9% for all other Rail Products. So the Off Peak Return you purchase from EMT, 9% of that revenue will go directly to EMT with the remaining 91% allocated (mostly likely) via ORCATS, between each of the TOCs it is possible for you to travel on with an Attenborough to Sheffield Any Permitted ticket, using the methods outlined above.
