The Shift in Spain’s High-Speed Train Market
The high-speed train sector in Spain is facing a significant challenge. Initially, the entrance of competitors like Iryo and Ouigo promised a drop in ticket prices for consumers. However, as of the third quarter of 2025, a concerning trend has emerged: all major operators are hiking their prices, as noted in a recent report by the National Markets and Competition Commission (CNMC).
The Change of Trend
Looking specifically at the Madrid-Barcelona corridor, which is the busiest route in the country, prices have surged by an average of 25% compared to 2024. Iryo stands out with the most substantial increase of 52.9%, bringing the average ticket cost to €63.82. Renfe AVE is not far behind, having raised fares by 13.3% to €70.58. Interestingly, Ouigo, once known for its budget-friendly fares, has also increased its prices by 20.2%, with an average ticket costing €51.86.
The Context Behind the Price Surge
The price increases can be attributed to various factors, particularly the withdrawal of Avlo, Renfe’s low-cost brand, from the Madrid-Barcelona route. The decision came after cracks were found in the bogies of the Avril trains, leading to a reduction in available cheap tickets for this pivotal corridor. While tickets remain approximately 26% cheaper than before the sector’s liberalization in 2020, the recent hikes indicate a shift in the competitive landscape.
Andalusia: A Different Scenario
In contrast, Andalusia exhibits a different trend. Ouigo’s entry into routes like Madrid-Sevilla and Madrid-Málaga/Granada in January 2025 sparked a price war, resulting in sustained low fares. In the Madrid-Málaga route, Renfe AVE slashed prices by 8.9%, and Avlo decreased charges by 15.3% to compete against Ouigo’s average price of €32.54. Even in the Madrid-Seville corridor, the average price dropped by 2.8%, despite individual operators raising their fares.
Moderate Increases in the Levantine Corridor
Routes in the Valencian Community show more moderate price hikes. For instance, ticket prices from Madrid to Valencia increased by just 1.3%, making it the cheapest option on the network at an average of €30.56. In Madrid-Alicante, the rise was slightly higher at 1.5%, with Iryo significantly increasing its prices on both routes.
The Quest for Profitability
Transport Minister Óscar Puente has urged these price hikes, suggesting that Ouigo’s low fare strategy is damaging the financial sustainability of the market. Most operators are now seeking profitability, leading to unavoidable price adjustments.
A Robust Demand Despite Prices Rising
Despite the price hikes, demand for high-speed travel remains robust. Projections indicate that nearly 40 million travelers will use high-speed trains in 2024, a 77% increase from pre-liberalization levels in 2019. Routes such as Madrid-Málaga/Granada, Madrid-Sevilla, and Madrid-Alicante reported record passenger figures, while Madrid-Barcelona saw only a slight drop.
Looking Ahead: Maturity of the Sector
As the high-speed train sector moves into what seems like a phase of maturity, operators need to balance between attracting travelers and maintaining a viable business model. Currently, Renfe retains a dominant market share of 62% across most routes, although this varies, dropping to 50% in the Madrid-Valencia corridor. The coming months will be crucial as these operators adapt to a changing market landscape.