In Ouigo they are still waiting for the minister Oscar Puente Make your complaint official before the National Markets and Competition Commission (CNMC) for the company’s “unfair” prices. The minister’s intention was to cover Renfe’s losses and prevent the free market in Spanish high speed. Meanwhile, a new report from the regulator highlights the benefit for consumers of railway liberalization.
The number of passengers is growing exponentially in corridors where there was no competition a year ago
In its first quarterly report of 2024, it assures that high speed has registered more than 8.5 million travelers in the first quarter of 2024, 27% more than in the same period of the previous year. Prices were reduced by between 24% and 28% on routes where there was no competition in the first quarter of 2023.
The number of passengers grew exponentially on corridors where there was no competition a year ago: 62% on the Madrid-Alicante route and around 50% on the Madrid-Seville/Málaga/Granada routes. Travelers from Madrid-Barcelona (+7.4%) and Madrid-Valencia (+23.9%) also increased, where in the first quarter of 2023 there was already competition between three operators and four commercial brands.
In May, the CNMC already revealed that the entry of new companies starting in 2019 in the Spanish railway sector, in which three companies currently operate under four commercial brands –AVE and Avlo (Renfe), Ouigo and Iryo–, generated an impact positive of 578 million in 2023, according to the ‘Report on the Balance of the Liberalization of Passenger Transport by Rail’. In this report, Competition already confirmed that liberalization has saved consumers 343 million euros, corresponding to the benefit they received from being able to travel more and cheaper thanks to competition between companies.
Cheaper tickets
The prices collected by the CNMC fell between 24 and 28% year-on-year on routes where there was no competition a year ago: Madrid-Seville (-24.5%), Madrid-Málaga (-28%) and Madrid-Alicante ( -27.6%). On the Madrid-Valencia route, the decrease was 9.4%, and only the Madrid-Barcelona route saw a higher price (+5.2%). It was possible to travel between Madrid and Valencia for 27 euros, to Alicante for 36, to Barcelona for 51, to Seville for 48, and to Malaga for 44.
Ouigo maintained a share of around 25% in the Levante corridors and 17% in Madrid-Barcelona
Renfe Viajeros continued as the main operator in all corridors, with shares of between 46 and 73% of travelers. Iryo obtained between 24 and 28% except in Madrid-Alicante, and Ouigo maintained a share of around 25% in the Levante corridors and 17% in Madrid-Barcelona.
Other services
The discounts and freebies introduced by Royal Decree-Law 14/2022, in force since August 2022, have caused the services provided with public service obligations exclusively by Renfe Viajeros to considerably increase the number of passengers.
In the first quarter of 2024, Medium Distance travelers grew by around 10% compared to the previous year, and Cercanías remained stable (0.9%). However, they fell 10% and 3.6% respectively, compared to the previous quarter.
The Conventional Long Distance commercial product had a year-on-year increase in travelers of 5.3%, although it offered 2.1% fewer seats.
Goods
According to the CNMC report, freight transport activity improved compared to the previous quarter: 2.7% in net tons, 1.2% in net t.km, 5% in trains.km and 1. 8% in income. However, these increases did not compensate for the declines of the summer and the interannual variations were negative, both in net tons (-4%) and in net t.km (-5.4%). Only train.km showed a slight increase (+1.4%).
Specifically, the companies Medway (16%) and Captrain (8%) increased their activity compared to the first quarter of 2023, in net tons transported. Transfesa, Renfe Mercancías and Continental experienced a decline of 12%, 10% and 2% respectively.
