the emergence of private competitors against the old monopoly Renfe It has caused a commercial earthquake and is triggering major high-speed rail trade in Spain. In recent years, the increasing liberalization of the main corridors of Madrid-Barcelona, Madrid-Levante and Madrid-Sur has shaken the market, collapse of ticket prices and this is it The number of passengers is increasing rapidly on routes previously dominated by aircraft.
The low cost of state-owned Trenitalia (45%), Air Nostrum (31%) and Iryo controlled by Globalvía (24%), Ouigo owned by the French state group SNCF and finally the Spanish market entry Avlo brand Renfe, average price collapse passengers pay for their tickets, which contrasts with what was available before liberalization.
The average price of the Madrid-Barcelona high-speed train line, the first corridor to be liberalized, was 200,000 TL this year. 35 euros, 65% below that recorded in 2019 According to the latest fare research by digital train ticket sales platform Trainline, which compares prices and markets the offer (before the pause caused by the covid pandemic and the entry of private competitors in 2021) and is 22% lower than the previous year for all companies.
Ticket prices have been determined for all liberalized routes Despite the pressure, there were big decreases this year. inflation. The average fare on the Madrid-Valencia line fell 44% this year to 23 euros; Madrid-Alicante’s fell 47% to 29 euros; Madrid-Malaga’s fell 37% to 44 euros; Connection prices from Madrid to Seville and Córdoba decreased by 35% to an average of 42 and 37 euros respectively.
With the newly increased train supply and falling prices, The high-speed train gradually took control of the plane The increase in Spain’s major routes and the liberalization of the railway accelerated market capture. The train already controls almost 80% of passengers on the Madrid-Barcelona route, on the Madrid-Valencia route this figure reaches 90% and on the routes between the capital and Alicante, Malaga and Seville it already exceeds 75%.
Second liberalization
Adif, the operator of the country’s road network infrastructure, is preparing for a second liberalization in the sector by giving private competitors access to new corridors that will connect Madrid-Barcelona, Madrid-Levante and Madrid-Sur. Residual state group At the same time, work is being carried out on opening the Galicia corridor to competition, connection with Murcia and the Mediterranean Corridor.. Companies already operating in the Spanish market have shown interest in entering at least some of the new routes once they are liberalised, and new players looking to enter the market are also starting to emerge.
High-speed competition in the Spanish market is already high with three major operators and four business brands. And now new groups are beginning to maneuver to join the next wave of liberalization, as the recent alliance of Alsa and Eco Rail confirmed. eventual entry of new competitors by some already existing companies risk for the sustainability of the sector and there are those who see in recent years that the current price war as an initial strategy for private operators is normal, but that they need to slow down commercial aggression in the medium term. to guarantee profitability of companies.