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Date Published: 07/02/2023

Price war between Spanish rail companies means big savings for customers

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The three operators are determined to lower the cost of train travel in Spain

Price war between Spanish rail companies means big savings for customers

Competition between different companies in the same sector usually means good news for customers as it forces price drops across the board and that’s exactly what’s happening with rail travel as Spain’s three competitors – Renfe, Ouigo and Iryo – battle it out to attract more customers.

While the operators agree that there is enough business for everyone, the competition has already driven down the price of tickets, with Ouigo offering fares between Madrid and Barcelona for just nine euros. These bargain prices helped the company to grow by more than 70% last year.

Not to be outdone, rail giant Renfe is currently selling tickets on the same route, as well as a trip from Madrid to Valencia, for as little as seven euros on board its low-cost Avlo line, a move that nabbed the budget service 14% of all demand during 2022.

Newcomers Iryo only began operating in November so their true impact on the competition is still difficult to gauge, but they are currently offering connections from Madrid to Barcelona and Valencia for just 18 euros.

Experts predict that "these prices will be able to be maintained depending on the capacity of the three current operators to share the current high-speed demand, some 32 million passengers a year, and, furthermore, multiply it with new clients coming, above all, from road".

While the price war continues to heat up, Renfe is still sitting comfortably at the top of the table, and despite having higher prices, it’s high-speed AVE service covers a market share of 57% in Spain.

Also of interest: Spanish police arrest 19 people for facilitating illegal migration from North Africa

Image: Renfe

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