Revenue allocation
Most UK railway tickets involve allocations to more than one operator, including buses, underground and light rail. Even small changes in these allocations can significantly change revenue.
How we can help
Line by Line can check whether current allocations are correct and, if not, calculate and recommend alternative ones. We can also calculate the revenue effect of new allocations (e.g. new Travelcard allocations) and forecast whether allocations may change and what effect these may have. We’ve helped several rail companies on different allocation methods and their revenue effects, including:
- Devising a method of calculating the allocation of revenue on one of a TOC’s services, substantially reducing the income claim from another operator.
- Whilst representing one TOC on the ATOC London Scheme for a year, we discovered an allocation systems error which had been costing the TOC significant Travelcard income.
- Devising a survey-based methodology for calculating the amount due to rail operators for participating in the Freedom Pass Scheme. This resulted in a significantly increased payment to TOCs from the London Boroughs.
- Estimating the effects of a ticketing system error on allocations between a number of TOCs.
