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Old May 31st 09, 10:59 AM posted to uk.transport.london,uk.railway
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Default Oyster revenue allocation question

On 31 May, 10:33, Graham Murray wrote:
D DB 90001 writes:

Oyster capping however would add another complication to the mix
because the single fare which previously would have been wholly
allocated to a particular TOC would now be reduced since the oyster
reductions for further journeys are 0. To be honest it would be easier
at this stage to *give up* as it were, and simply adopt a travelcard
revenue allocation method. But maybe it could be possible to only
divide up the total revenue between the operators used and the
operators not used on this occasion get nothing? Not sure if this
would make the revenue allocation skewed on Oyster/non-Oyster routes
though.


Would it not be possible to adopt a system whereby once the cap is
reached, each operator gets the proportion of the capped fair according
to usage. So if (for simplicity of illustration) all single fares were
£1 and the cap £5 and someone makes 2 journeys on operator A and 1 on
operator B, operator A would get £2 and operator B £1. If the cap is
reached and the person makes 4 journey on operator A and 2 on operator
B, then operator A would get £5 x 4/6 = £3.33 and operator B £5 x 2/6 =
£1.67.


Potentially that could work, but would operator A get more than
operator B if the journey was twice as long (and would it be in terms
of distance or time?).
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Old May 31st 09, 12:44 PM posted to uk.transport.london,uk.railway
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Default Oyster revenue allocation question

D DB 90001 writes:

On 31 May, 10:33, Graham Murray wrote:
D DB 90001 writes:
Would it not be possible to adopt a system whereby once the cap is
reached, each operator gets the proportion of the capped fair according
to usage. So if (for simplicity of illustration) all single fares were
£1 and the cap £5 and someone makes 2 journeys on operator A and 1 on
operator B, operator A would get £2 and operator B £1. If the cap is
reached and the person makes 4 journey on operator A and 2 on operator
B, then operator A would get £5 x 4/6 = £3.33 and operator B £5 x 2/6 =
£1.67.


Potentially that could work, but would operator A get more than
operator B if the journey was twice as long (and would it be in terms
of distance or time?).


That is a result of the simplification. In practice I would expect the
sharing to done on ratio of the cost of uncapped fares for journeys made
on each operator. So, in my examples, if each journey on operator A
still cost £1 but those on operator B cost £2, then in the capped case
each operator would have received £2.50 as the total 'uncapped' fare
would have been £4 for each operator.
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