In the liberalization of high speed between Barcelona and Madrid, everyone wins for now, except for the plane. The two new operators, Iryo and Ouigo, are increasing market share at a rapid pace, but they are not doing so at the expense of their public competition, Renfe-AVE and Avlo, but rather to expand the market. In the second quarter of the year, they transported 45% of passengers and contributed to making this rail link, the most frequented in Spain, achieve a record of activity.
According to data released yesterday by the National Markets and Competition Commission (CNMC), Iryo showed explosive growth between April and June and managed to transport 866,700 passengers, 24% of the total. The merit lies in the fact that this operator, owned by Trenitalia, Globalvia and Air Nostrum, launched its activity in November last year.
The French Ouigo, which debuted on the link between Barcelona and Madrid in May 2021, transported 749,990 people during the quarter, 23% more than a year earlier. Its market share is now at 21%. And the third operators in dispute, Renfe-AVE and Avlo, added 55% of passengers, or 1.99 million, a figure just 2.6% lower than a year earlier.
In the competition between these companies, price is a key factor. Ouigo is the most competitive, with an average of 40.78 euros per journey, compared to 45.34 euros for Iryo and 46.86 euros for Avlo. Renfe-AVE, on the other hand, is in another segment, with an average price of 66.36 euros.
Prices had fallen during the first quarter of the year, but between April and June they experienced increases of between 17% and 37% due, to a large extent, according to the CNMC, to the increase in demand.
Occupancy exceeded 90% during the quarter among all operators except Iryo, with a rate of 82.99%. Renfe and Avlo trains traveled at 99.2% and Ouigo, at 99.9%.
The daily traffic of this corridor already amounts to an average of 40,000 passengers a day. During the quarter, passenger numbers hit a record 3.6 million, up 36% from the same period in 2022.
The rise in prices is also an indication that strong competition is beginning to moderate. The operators assume that they will operate at a loss during the first years and, in the case of Ouigo, they have already begun to review their frequencies to look for profitability. The French operator has announced the withdrawal of two of the twelve daily routes between Barcelona and Madrid.
With the analysis of the entire Spanish high-speed network, the CNMC highlights the high level of passengers in the second quarter. It was a record of 8.32 million, 33% more than during the same period of the previous year, thanks to the activity of brokers where competition has entered, the organization indicates.
Nearly one million passengers traveled between Madrid and Seville, 30% more than the 750,000 between Madrid and Alicante, and the 1.3 million between Madrid and Valencia.
The prices of journeys in which new competitors have joined, as indicated by the CNMC, have fallen. If before they ranged between 11 and 13 cents per passenger and per kilometer, prices are now between 7 and 8 cents. Another of the novelties of the quarter is that for the first time in one of the liberalized corridors, the one connecting Madrid with Valencia, Renfe-AVE and Avlo have remained, with 49%, below 50% in terms of market share.
