Strange fare pricing

[SAPhil]

I have recently stumbled on a fare that uses three train companies services with specific routing points where the return off peak fare to the destination is cheaper than the equivalent fares to either of the two routing points!

Depending on the time of day there is an even cheaper fare available.

Break of Journey appears to be allowed and any restriction would in any case be unenforceable for the first change.

This fare appears to be set by the third TOC whereas the other fares are set by the first TOC.

I am deliberately being vague here but wondered if this sort of thing is common or if it is likely to be an error. How does the fare setting work?

Does the third TOC have to make some kind of payment to the others, in which case they must surely be making a loss!

The first section of the journey is one I make frequently, so I may be using this fare quite a lot!

 

[Haywain]

How does the fare setting work? Does the third TOC have to make some kind of payment to the others, in which case they must surely be making a loss!

The fare setter does not necessarily receive any of the fare but they won't be making a loss as it will be distributed on a proportional basis with each entitled TOC receiving a fixed percentage of the fare - this may or may not include the fare setter.

The first section of the journey is one I make frequently, so I may be using this fare quite a lot!

Probably best keep it quiet then!

 

[voyagerdude220]

There are no doubt many examples of this being the case across the network.

I doubt companies would pay each other in regards to anomalies they cause each other.

 

[Kilopylae]

I am deliberately being vague here but wondered if this sort of thing is common or if it is likely to be an error.

No doubt it hasn't been done on purpose to save anyone money, but this sort of mistake on the part of the pricing managers is not rare.

How does the fare setting work? Does the third TOC have to make some kind of payment to the others

The revenue from fares is distributed through a system called ORCATS, an old computer system, which takes into account the proportion of the mileage associated with each company.

 

[yorkie]

I have recently stumbled on a fare that uses three train companies services with specific routing points where the return off peak fare to the destination is cheaper than the equivalent fares to either of the two routing points!

Depending on the time of day there is an even cheaper fare available.

Break of Journey appears to be allowed and any restriction would in any case be unenforceable for the first change.

This fare appears to be set by the third TOC whereas the other fares are set by the first TOC.

I am deliberately being vague here but wondered if this sort of thing is common or if it is likely to be an error. How does the fare setting work?

Does the third TOC have to make some kind of payment to the others, in which case they must surely be making a loss!

The first section of the journey is one I make frequently, so I may be using this fare quite a lot!

If you send me a conversation message I will be happy to provide my opinions.

I don't work for a TOC so don't have a potential conflict of interest in this area.

If it is an error and the details are posted here, or sent to someone involved in pricing/revenue, you may well end up paying more for your journeys in future, so I can totally understand why you are concerned.