The liberalization of high speed, which has led to competition between operators – there are three companies in dispute – has led to a significant increase in passengers, driven by the sharp reduction in tariffs that has taken place. The ticket for the trip between Barcelona and Madrid, the first Spanish corridor in transit, has been reduced since 2019 by 65%, according to a study by Trainline, Europe’s leading independent train and bus booking platform, up to currently stand at an average of 35 euros per journey, 22% less than a year ago.
The reduction in the prices of the high-speed train took place since before the entry of companies competing with the public Renfe, which provides high-speed service between the two main Spanish cities since it was put into operation, in February 2008. The flexible tariff policy applied by the state operator and the periodic offers are behind this reduction. In addition, the pandemic, which paralyzed much of the activity in 2020, did a lot of damage to rail passenger transport, and when it was reactivated new incentives 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 has been in the works for some time, but which had been delayed. He did so just one month later, in June. The next step – and for now the last one – in the release of the corridor took place in November 2022, with the arrival of Iryo, which is also owned by the Italian state-owned Trenitalia. It was presented as an alternative focused mainly on a business client, with special benefits (internet connection, catering…), for this reason the rates were not expected to be particularly low. But the reality was different and he burst in with very attractive tickets, which he still holds today.
This price war has led to losses for the three companies, which have to deal with high operating costs increased by recent inflation that has particularly affected energy. That is why 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 for the service itself. Ouigo has been forced to reorganize its offer, reducing the number of trains in the winter months. On the other hand (see La Vanguardia of December 11), the circulation of more trains has meant an increase in breakdowns and delays to the point that one in four convoys arrives later than expected.
The Trainline report notes significant discounts on tickets for all routes where there is more than one operator. In Madrid-Alacant, it has fallen 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 this 2023 compared to the previous year. Madrid-Málaga has recorded a 37% decrease in ticket prices this year in relation to 2022 and the average fare is 44 euros. Finally, the routes from Madrid to Seville and from Madrid to Córdoba have both shown a drop of 35%, which places the average ticket price at 42 and 37 euros, respectively.