Read news from:
Austria
SHARE
COPY LINK

TRAIN TRAVEL

Iryo: Spain’s new low-cost train operator launches on Friday

Spain's third train operator will kickstart its new Madrid-Barcelona route on Friday, with Valencia, Málaga and numerous other cities to be added to its network and average ticket prices selling for €18.

Published: 21 November 2022 13:38 CET
Iryo: Spain's new low-cost train operator launches on Friday
Low-cost train's Iryo is pictured on the day of its inaugural trip at the Chamartín train station in Madrid on November 21, 2022. - Private high-speed train operator Iryo, which is 45 percent owned by Italy's Trenitalia, makes on November 21 a symbolic inaugural trip in Spain, four days before it starts its passenger service between Madrid and Barcelona. (Photo by Pierre-Philippe Marcou / AFP)

Competition in Spain’s high-speed rail market is heating up with a new operator starting passenger services on Friday, making it Europe’s first nation with three players in the sector.

The new firms have pushed down prices and increased passenger traffic on the high-speed network, which at 4,000 kilometres (2,500 miles) is the second longest in the world after China’s.

Private operator Iryo, which is 45 percent owned by Italy’s Trenitalia, made an inaugural symbolic trip on Monday from Madrid to Valencia on Spain’s Mediterranean coast.

It will begin passenger services on Friday November 25th with 16 daily return trips between Madrid and Barcelona, via Zaragoza.

Ticket prices will vary depending on the different packages offered, but according to Iryio the average cost per one-way ticket is €18.  

READ ALSO: What to know about Iryo, Spain’s newest high-speed low-cost trains

Iryo will compete with French railway company SNCF’s firm in the country, Ouigo, which has been operating since May 2021 and Spanish state-owned rail operator Renfe, which opened its first high-speed service in 1992.

The arrival of a third operator is a “historical step” which is “novel” in Europe, said Carlos Lerida, a rail transport expert at the Autonomous University of Madrid.

“Until now no high-speed rail network has operated with three competitors. Spain could serve as a model,” he told AFP.

GUIDE: How to get free train tickets in Spain

Iryo, which is kicking off its operations in Spain with 20 trains, will in mid-December expand its services to include a Madrid-Valencia route (via Cuenca).

In March 2023 it will start running trains from Madrid to Seville, Málaga, Córdoba and Antequera in the southwestern region of Andalusia. In June, it intends to launch its route to the eastern coastal city of Alicante (via Albacete). 

Ouigo already operates trains along the Madrid-Barcelona and Madrid-Valencia routes and plans to start services to the Mediterranean port of Alicante as well as Andalusia next year.

Low-cost train Iryo’s staff members stand at the trains’ door on the day of its inaugural trip at Chamartín train station in Madrid. (Photo by Pierre-Philippe Marcou / AFP)

‘Democratise high-speed’

Spain’s state rail infrastructure operator Adif in 2019 granted contracts allowing the firms to operate on these routes for 10 years.

Socialist Prime Minister Pedro Sanchez’s government is keen to lower ticket prices for bullet train tickets to make greater use of the high-speed rail network.

Greater competition will “democratise high-speed” rail travel, Transport Minister Raquel Sanchez said last month, calling Spain’s model for the sector “revolutionary”.

Renfe responded to the arrival of Ouigo in May 2021 with the launch of a low-cost bullet train service called Avlo.

The company has also renewed its fleet of trains and improved the service it offers passengers on their journeys.

Renfe has a seat sale underway with prices of a 500-kilometre (300-mile) trip between Madrid and Barcelona for as little as seven euros.

“We see the arrival of competition as an opportunity not as a problem,” a Renfe spokesman said.

Average prices for tickets on high-speed trains between Madrid and Barcelona have dropped by 25 percent since Ouigo started operating last year, according to Spain’s competition watchdog CNMC.

‘Underused’ network

Passenger traffic on the route has jumped by 47 percent, and is up by 14 percent along Spain’s entire rail network since May 2021, according to Adif.

“The network was underused,” the director general of Ouigo’s Spanish branch, Helene Valenzuela, told AFP, adding this meant there was a “limited risk” in entering the market.

The company spent €630 million ($644 million) to launch its operations in Spain.

“Our main rivals are planes and cars, not other trains,” said Valenzuela.

“On a technical level, it is a challenge, because we have to organise the flow (of trains) in the stations. But on an economic level, it is an opportunity,” she added.

Competition in the high-speed rail sector has its limits.

It works on “very busy lines” but it is “much more complicated” on other routes where it is harder for companies to cover their costs and make a profit,” said rail transport expert Lerida.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TOURISM

How much more expensive will holidays in Spain be this summer?

Whether it be hotel prices rising or shortages in the aviation sector making flights more expensive, a summer vacation in Spain this year is likely to cost more than last year.

Published: 25 April 2024 09:13 CEST
How much more expensive will holidays in Spain be this summer?

With lingering inflation, drought conditions, rising rents and building social tension surrounding the impact of mass tourism on Spanish society, summer 2024 could be an eventful one in Spain for a number of reasons.

It will probably also be more expensive than it was in the past, especially if you’re staying in a hotel or tourist apartment.

This follows a bumper Easter period that saw high occupancy and price rises across the country, and if forecasts and industry experts are anything to go by, it’s a trend that will continue into the summer season.

READ ALSO: ‘The island can’t take it anymore’: Why Tenerife is rejecting mass tourism

Hotel prices March increased by 10 percent compared to the same period in 2023, and have now experienced 34 consecutive months of price increases.

The average hotel room in Spain during March cost €109.2 per night, according to Hotel Tourism Situation data published by Spain’s National Statistics Institute (INE).

How much more expensive will flights to Spain be this summer?

Firstly, flights. Aviation industry experts suggest that a perfect storm of conditions could cause the price of flights to increase for summer 2024. A shortage of commercial planes, caused mainly by a combination of problems on Boeing’s production line and Airbus having difficulties with engine manufacturers, will likely drive up prices around the world.

These “are factors that don’t make it easy for prices to fall,” according to Pere Suau, professor of Economics and Business Studies at the Universitat Oberta de Catalunya, who admitted that “it is difficult to measure the extent to which” they will go up. The key, in Suau’s opinion, is to see how demand will be affected by price rises. “As of today prices are rising, but demand is tolerating it, demand continues to grow,” he adds.

Reports in the Spanish media suggest that prices on budget airlines like Ryanair could rise by around 10 percent.

READ ALSO: EasyJet opens Spanish base in Alicante with ten new routes

How much more expensive will hotels in Spain be this summer?

So, flights will likely be more expensive this year. But what about hotels?

It’s difficult to say exactly by how much hotel prices will have risen by summer, but most estimates put it at somewhere in the 8-12 percent range, depending on factors such as location, occupancy, type of accommodation (ie. is it luxury or budget) and length of stay.

However, despite that, most experts seem to think the price rises will be slightly less than the 2023-23 year-on-year increases, when average hotel room costs shot up by 16.5 percent, according to statistics from SRT and Cushman & Wakefield.

Albert Grau, partner at Cushman & Wakefield’s Hospitality department in Spain, told El Periódico de España that: ‘We expect there to continue to be growth in prices… although it will be more moderate, in single digits, compared to the large increase in the last year.”

Spanish news outlet La Sexta reports that hotel rooms in the summer will be on average 11 percent more than last year, according to figures from INE and Travelgate.

Forecasts by American Express Global Business Travel (Amex GBT) put Barcelona, long a popular tourist destination, among European cities where a significant increase in hotel prices is expected, with a projected rise of 9 percent. Other Spanish cities, such as Bilbao and Valencia, are forecast to see price jumps of around 8.5 percent.

In Andalusia, hotel sector insiders in Andalusia are expecting a 7 percent increase overall this summer, according to Trinitario Bertore, director of Hotel Plaza Nueva in Granada, who spoke to La Sexta. Bertore said a night’s stay in a hotel in Andalusia can now cost up to €210, a 7 percent rise compared to last summer.

José Luis Contreras, managing director of Apartamentos Valencia Costera, said prices in tourist flats in Valencia will also rise by around 7 percent and even reach an eye-watering €350 per night in the high season.

Both Bertore and Contreras said that there’s no need to lower prices because demand is increasing, despite the per night rate increases.

It seems clear that accommodation will likely be a more expensive for summer 2024 in Spain than it was last year, though the year-on-year rise will slow slightly. Most forecasts put the average expected hotel price rises at roughly 10-11 percent overall.

By exactly how much will depend on several factors: where you’re staying, and whether it’s a traditional tourist spot such as parts of Andalusia, Alicante, Valencia or the Canary and Balearic Islands; whether it’s a hotel or apartment; the quality of the accommodation; how long you’re staying; how far in advance you book; when exactly in the summer season you’ll visit Spain.

Aviation industry uncertainty also means that flights will become more expensive, so both travel and accommodation are likely to be more expensive in Spain this summer.

Tourism makes up a significant portion of Spain’s GDP. Predicted tourism earnings for 2024 are expected to bring in €202.65 billion, an 8.6 percent increase on 2023, a record year.

However, growing anti-mass tourism sentiment has been bubbling in Spanish society for some time now, with protests in various cities around the country decrying the impact, among other things, of Spain’s tourism model on the local housing market.

READ ALSO:

SHOW COMMENTS