A user asked about commission earlier:
All online retailers get a small(ish) 2% commission fee for selling the ticket. At a booking office staffed by a TOC, they get 9%.
Not quite...There are different levels of commission depending on point of sale and ticket type, and those are enshrined in the Ticketing and Settlement Agreement (now up to version 9.3).
Standard rates are 2% for season tickets and 9% for almost everything else.
Internet and Business Travel Office sales earn a reduced rate of commission compared to stations, on-train and Telesales issues.
The 2% or 9% is deducted from the fare, and whatever is left is allocated through ORCATS,
If only it were that simple!
The seller gets a debit for the full cost of the ticket, but then gets a credit for the commission (if any).
The operators that get revenue from the ticket get credits for their percentage and debits for their share of the commission.
So if you have a ticket costing £120 and TOC A gets 50%, TOC B gets 25% and TOCs C and D get 12.5% each, and it's sold by TOC E at a station:
- TOC E gets a debit for £120 and a credit for £10.80.
- TOC A gets a credit for £60 and a debit for £5.40.
- TOC B gets a credit for £30 and a debit for £2.70.
- TOCs C and D get credits for £15 and debits for £1.35 each.
Thus ensuring the debits and credits balance each other.
Things get more complicated with season tickets, as the revenue from those is spread across the validity of the ticket and paid every four weeks.
Cheers,
Barry