Deborah Cater
Spain’s high-speed railways have undergone a major shake-up in recent years. Since market liberalisation in 2020, the country’s rail network has opened up to private operators, and the results have been dramatic: ticket prices are down, availability is up, and rail is now outpacing air travel on some key routes.
For travellers, this new era means more seats, better value, and fewer reasons to fly.
Open markets equals lower fares
Once dominated by national operator Renfe, Spain’s high-speed lines now host a range of services thanks to the entry of new players like France’s Ouigo and Italy’s Iryo. These newcomers have shaken up the industry with a mix of budget-friendly and full-service offerings.
The impact on prices has been immediate and significant:
- On the Madrid–Barcelona route, average fares have dropped by up to 40% compared to pre-competition levels.
- Ouigo has offered tickets as low as €9. It also attracted over two million passengers in its first year (2021).
- On the Madrid–Alicante line, fares have fallen by 27.6%, driven by the same competitive pressure.
This has made high-speed rail a compelling alternative to domestic flights, not just in terms of price, but also convenience.
The rail revolution in numbers
The data tells its own story.
- Rail now accounts for 81.8% of travel between Madrid and Barcelona, up from 59% in 2019.
- Renfe’s own low-cost service Avlo, launched in response to the new competition, has helped grow the overall rail market.
- Ouigo received the fewest customer complaints among all operators in the latest CNMC (Spain’s competition watchdog) figures.
According to CNMC, nearly 90% of passengers report using these services occasionally rather than regularly. While most travellers are still infrequent users of the service, the affordability of high-speed rail is encouraging a broader base of leisure travellers, not just business passengers.
Renfe starts to respond to demand
The surge in capacity hasn’t just made rail cheaper, it’s made it more accessible. Rail travel expert Mark Smith, better known as The Man in Seat 61, says the competition has been long overdue.
“The arrival of competing high-speed operators such as lo-cost Ouigo and full-service Iryo has dramatically increased the number of seats available and seen fares come tumbling down. Before this, trains often ran full and prices could be high. In my opinion, on routes such as Madrid–Barcelona, Renfe had been under-providing and over-pricing.”
One of the most frustrating aspects of booking train travel in Spain used to be Renfe’s short booking windows. Tickets were often released just two weeks before travel, limiting forward planning and early-bird savings.
That too is changing.
“There has also been another benefit, specific to Spain,” Smith added. “For years, Renfe has been notorious for late opening of ticket sales, sometimes as little as 2 weeks ahead, which is crazy. This is still a problem on many Renfe routes, but on routes where they now have competition, they have magically extended the booking horizon to many months!”
Not without resistance
Despite the benefits for passengers, the new landscape has not been welcomed by everyone. Renfe has raised concerns that low-cost competitors are operating unsustainable models and benefiting from state support in their home countries. There are also broader questions about whether aggressive price-cutting can be maintained in the long term without compromising quality or service.
Nonetheless, for now, passengers are voting with their feet and taking the train.
A permanent return to the rails?
Spain’s rail network is fast becoming a poster child for how liberalisation can benefit consumers.
Trains are no longer the expensive, inflexible option. They are now a fast, affordable, and eco-friendly way to travel between major cities, and increasingly popular with a wider range of travellers.