Tender Discussion Thread
Tender Discussion Thread
(17 Jun 2020, 11:47 am)streetdeckfan But don't the larger operators receive a fixed amount rather than being paid per ticket, so increasing the hours of acceptance is unlikely to result in increased revenue from them?
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• compensate operators for the revenue forgone – i.e. the revenue they would have received from those concessionary passengers who would otherwise have travelled and paid for a (full fare or discounted) ticket in the absence of a scheme; and
• pay operators any net additional costs they have incurred as a result of the scheme – this could for instance include the cost of carrying additional generated passengers (i.e. concessionary
passholders that would not have travelled in the absence of the scheme) or other costs that would not have been incurred in the absence of the concession such as scheme administration costs.
Those costs are net of additional revenue.
TOTAL REIMBURSEMENT DUE = Revenue Forgone [R] + Net Additional costs [A]
(17 Jun 2020, 11:47 am)streetdeckfan But don't the larger operators receive a fixed amount rather than being paid per ticket, so increasing the hours of acceptance is unlikely to result in increased revenue from them?
Sent from my LM-G710 using Tapatalk
• compensate operators for the revenue forgone – i.e. the revenue they would have received from those concessionary passengers who would otherwise have travelled and paid for a (full fare or discounted) ticket in the absence of a scheme; and
• pay operators any net additional costs they have incurred as a result of the scheme – this could for instance include the cost of carrying additional generated passengers (i.e. concessionary
passholders that would not have travelled in the absence of the scheme) or other costs that would not have been incurred in the absence of the concession such as scheme administration costs.
Those costs are net of additional revenue.
TOTAL REIMBURSEMENT DUE = Revenue Forgone [R] + Net Additional costs [A]
