The liberalization of high speed, which has led to competition between operators – there are three companies in the running – has led to significant growth in travelers driven by the sharp reduction in rates that has occurred. The ticket for the trip between Barcelona and Madrid, the first corridor in traffic, has been reduced by 65% since 2019, according to a study by Trainline, the main independent platform for train and bus reservations in Europe, to currently stand at average of 35 euros, 22% less than a year ago.
The reduction in high-speed train prices had been occurring since before the entry of companies competing with the public Renfe, which has provided high-speed service between the two main Spanish cities since its start-up in February 2008. The fare policy flexible applied by the state operator and periodic offers are behind this reduction. In addition, the pandemic, which paralyzed much of the activity in 2020, did a lot of damage to passenger rail transport and when it was reactivated, new stimuli were needed to recover the lost users.
The price reduction accelerated in the midst of overcoming the covid crisis. In May 2021, the entry on the scene of Ouigo, the low cost of the French public SNCF, with an aggressive offer, forced Renfe, which until then only had its AVE service, to launch Avlo, its cheap brand, a project that had been in the works for a long time but had been delayed. He did it just a month later, in June. The next step – and for now the last – in the liberation of the corridor was taken in November 2022, with the arrival of Iryo, owned by the Italian state-owned Trenitalia. It was presented as an alternative focused mainly on a business client, with special benefits (internet connection, restaurants...), so the rates were not expected to be particularly low. But the reality was different and it emerged with very attractive bills, which it still maintains today.
This price war has led to losses for the three companies, which must face high operating costs increased by the inflation of recent times that has especially affected energy. For this reason, they have demanded from Adif, the public administrator of the infrastructure, a reduction in the fee charged for circulation. This tariff battle also has consequences on the service itself. Ouigo has been forced to reorganize its offer, reducing the number of trains in the winter months. On the other hand, as La Vanguardia published on December 11, the circulation of more trains has led to an increase in breakdowns and delays to the point that one in four convoys arrives later than expected.
The Trainline report confirms significant reductions in tickets for all routes where there is more than one operator. In Madrid-Alicante it has decreased by 47% in the last year alone, which translates into an average price of 29 euros. The Madrid-Valencia corridor registers a drop of 44%, with an average price of 23 euros in 2023 compared to the previous year. Madrid-Málaga has registered a 37% decrease in ticket prices this year compared to 2022 and the average fare has stood at 44 euros. Finally, the routes from Madrid to Seville and from Madrid to Córdoba have both presented a drop of 35%, placing the average ticket price at 42 and 37 euros, respectively.
