The increase in high-speed rail travelers due to the entry of competition has popularized Trainline. This digital ticket sales platform arrived in Spain at the same time that the liberalization of the sector became effective three years ago and since then it has not stopped growing.
Has the end of the Renfe monopoly been a revolution in the sector?
Spain has the largest high-speed network in Europe and the second in the world. It’s fantastic! When Trainline considered expansion from the United Kingdom to other countries, it considered France and Italy, as well as Germany, but when analyzing the liberalization of the fourth railway package we realized that Spain was going to be ahead of the rest of the countries because it sought to attract new companies. competitors. It immediately rose to the top of our list of strategic priorities.
Have expectations been met?
The fact that there are four different brands (AVE, Avlo, Ouigo and Iryo) between Barcelona and Madrid and between Madrid and València has made us grow very quickly. Spain is now one of our main markets in Europe. We have double-digit market share on some of these routes.
Its platform carries out an analysis of the evolution of prices. According to these data, since liberalization they have decreased by 65%. Can they continue that path or have they hit rock bottom?
In Italy they dropped around 40% in the last ten years with two competitors. Between Madrid and Barcelona, ??65% have done so since 2019 and 22% compared to a year ago. The current average price is 35 euros and I don’t know if they will remain in this range or will go down further. What has become clear is that the existence of competition keeps prices lower.
Both Ouigo and Iryo are not achieving financial benefits at the moment. Are such low prices sustainable in the long term?
There are many promotional rates at the moment. It may rebound over time, but they are sure to remain much lower than they were historically.
For now, customers are the big beneficiaries and the number of high-speed train travelers has not stopped growing since 2020.
The growth in train travelers between Madrid and Barcelona is a direct result of price reductions: travelers are changing the plane and car for the train because it is faster, goes from door to door and offers good value for money. . This also fits with the Government’s agenda of reducing the carbon footprint; By plane the emissions generated are seven times higher.
Precisely in the Government’s legislative agreement, the reduction of short flights with a solid rail alternative was agreed.
Air travel on that same route is already declining. We will have to wait a couple more years, but it is very indicative. I think we will see a significant reduction in air travel and car use, which is also very interesting.
The model has triumphed in the sought-after Barcelona-Madrid corridor, but can it have the same success in the rest of the routes?
There are many other lines in Spain that could benefit from greater competition. The arrival of Ouigo to the southern corridor, to Seville and Malaga, will be very relevant and will help lower prices on those routes.
Is it time for the train?
We have ahead of us a golden age of the railway. Governments throughout Europe are investing in the train and all people benefit from this enormous investment thanks to competition. Ten years from now, on the top 200 railway routes, there will be at least two competitors. In many of them, three, or even four. This lowers prices and increases quality. It’s one of the ways we will ultimately reduce transportation emissions.
In that golden age there is also a boom in the night train. In Spain, however, there is no offer right now. Should they return like in the rest of Europe?
Absolutely, they are great. Fun and economical, creators of tourism and generators of commitment. They are an interesting part of the railway puzzle to get around Europe without having to get on a plane. They will arrive in Barcelona, ??I hope soon.
The facilities that Spain has made for the entry of competition, on the other hand, are not happening in countries like France.
What Spain has done is the best response. It has been an exemplary liberalization. I would prefer to see France do the same, allowing other operators to enter without putting obstacles in their way. Competition is what will drive down prices and convince customers to switch from flying to train much more effectively than a law banning short flights. I hope that Renfe and Trenitalia can take more steps in France and elsewhere.
Trainline acts as an intermediary between travelers and railway companies. What is your relationship with them like?
We are of great help to new brands and we have a very intense relationship with them. We sell between 25% and 40% of their tickets. Any new actor is always interested in working with us because we can help them get new clients. On the other hand, if you are a single actor, the relationship is different.
Refers to Renfe. They have had to turn to the European Commission to share their data…
We welcome the announcement from Brussels and Renfe’s commitments to ensure that all its app content is also available on Trainline and third-party apps. This way we can offer customers the best rates and information about if their train is delayed. It is an important level playing field for competition to occur between trains and digital applications.
Just as there is competition in the railway sector, there is also competition in ticketing applications.
We are already the number one application in downloads and users in Europe. For the last ten years we have focused on building a website and mobile application that makes the user experience very simple, although that is often not enough reason for a customer to decide to change applications. That’s why we’ve invested a lot in marketing and spent money getting the ad seen on stations, where potential users are.
The technological development partly takes place in Barcelona, ??where they have just expanded their offices. Why did you choose this city?
We love Barcelona as a location. It has great technological talent and is a good railway city considering the links it has with Madrid, but also with France. Now we have more than 60 workers and we hope to soon exceed a hundred.