Tip leakage is generated inevitably by the clearance between the rotating blades and the stationary casing of a turbine, and is responsible for both the aerodynamic losses in a turbine stage and the high heat-loads in the tip region . To decrease tip leakage and improve component performance, shroud seal structures have been widely applied to modern turbine components, especially to low pressure turbines, because of their advantage on both aerodynamic and structural features. However, due to the complexity of the shroud geometry, the flow structures and thermodynamic process in shroud can be extremely complicated, that is interactions of vortices, separations, jet flow, etc. Thus, because of the complex geometry of shrouds, as well as strong interactions between the tip leakage and main flow, it is not easy to draw a numerical simulation with satisfactory accuracy and time-costing in shrouded turbines. This begs the question of what should the compromise be between using simplified loss models and full 3D CFD analysis for leakage modelling?
In the main flow path of a turbine the flow will always be dominated by the blades shape, while for leakage cases the flow will be dominated by the motion and evolution of small eddies. Rosic et al.  reviewed the importance of shroud leakage modelling in multistage turbines. The comparison of measurements and 3D calculations shows that the flow in shrouded low aspect ratio turbines is dominated by shroud leakage. This is especially true as regards the loss distribution. The rotor shroud leakage flow greatly increases the secondary flow in the downstream stators and drives low energy fluid towards mid-span. It was pointed out that with very low values of shroud leakage the flow is reasonably well modelled by a simple 1D model of the leakage flow, using sources and sinks on the casing. However, for more representative real clearances, full 3D modelling of the seal and cavity flows is necessary in order to obtain reasonable agreement. Given that developing a simulation method with both high precision and fast solving speed is imperatively demanded for engineers to assess new designs, Zhengping Zou et al.  suggested that one of the potential approaches for solving the problem is a method that couples low dimensional models, 1D and 2D models, of the shroud flow with 3D (three-dimensional) simulations of the main flow passage. Specifically, some boundary source and boundary sink is set on the interface between the shroud and the main flow passage, and the source term and sink term are determined by the shroud leakage model. The schematic of this process is given in Fig. 1. The results of his study  demonstrate that the proposed models and methods will contribute to pursue deeper understanding and better design methods of shrouded axial turbines.Check out AxSTREAM CFD for your designing needs!
References: “The Importance of Shroud Leakage Modeling in Multistage Turbine Flow Calculations”, Budimir Rosic, John D. Denton, and Graham Pullan, Journal of Turbomachinery, Vol 128, pp. 699-707, October 2006  “Shroud leakage flow models and a multi-dimensional coupling CFD (computational fluid dynamics) method for shrouded turbines”, Zhengping Zou, Jingyuan Liu, Weihao Zhang, and Peng Wang, Energy journal, Vol 103, pp. 410-249