High-speed travel changed the Spanish rail market in May 2021 with the entrance of the French group Ouigo, intensifying competition that sharpened further in November 2022 when the Italian operator Iryo joined the scene. Renfe has not fully recovered from the impact of low-cost competition; this year it will end with losses despite reporting a record number of passengers, according to its president. A rating agency predicts profitability could fall by as much as 50% in the next two years for the same reason. Transport Minister Óscar Puente has accused Ouigo of dumping by pricing below operating costs and is weighing a formal complaint to the National Commission on Markets and Competition. Yet price alone does not always determine the cheapest option. A comparison of Ouigo and Renfe prices for April 2 of this year, conducted by a data source named activos, shows Renfe offering two cheaper itineraries across six shared corridors, with two others priced identically.
One of the routes highlighted is Madrid–Tarragona. For this day, Renfe tickets start at 39 euros for the 19:30 train, while Ouigo charges 59 euros for the 10:05 service, the only available option on that date. Another example is Madrid–Zaragoza, where Renfe offers a 25.75 euro fare for the 06:30 departure, and Ouigo lists 29 euros for the 07:05 train. A direct comparison with Iryo is not possible yet for Madrid–Tarragona, as trains on that Madrid–T Tarragona route will be available from June 15.
Between Madrid and Zaragoza, Iryo presents the higher price: 40.66 euros for the 20:25 service. There are two other routes where prices match, namely Madrid–Alicante and Madrid–Barcelona. It is also true that the two firms do not offer identical frequencies. On the Madrid–Barcelona corridor, one of the most demanded routes, both providers operate five frequencies, but on Madrid–Valencia Ouigo runs five while Renfe runs fourteen.
Plunge in average prices
Across the liberalized routes, average ticket prices have fallen sharply. The Madrid–Barcelona high-speed link dropped by 65% from 2019 to 35 euros, and was also 22% lower than the previous year, according to the latest Trainline tariff study. Other routes followed suit: Madrid–Valencia dropped 44% to 23 euros, Madrid–Alicante fell 47% to 29 euros, and Madrid–Málaga declined 37% to 44 euros.
The second round of railway liberalization is planned for 2026, a move acknowledged by Adif to invite more private operators and open new connections, including Galicia, Murcia, and the Mediterranean Corridor. Ouigo has already signaled it will compete with Renfe on parts of the Madrid–Galicia high-speed line and pursue new points in Castilla y León, such as Zamora or León. Iryo is exploring options with its train manufacturer to extend services to Vigo and other cities along the Atlantic Axis.