Competition in high-speed rail improves service frequency and prices, according to the CNMC

Competition in high-speed rail improves service frequency and prices, according to the CNMC

The liberalization of the rail market in Spain is beginning to yield one of its main results: greater supply and more competitive fares on routes where multiple operators are active. This is the conclusion reached by the National Commission for Markets and Competition (CNMC), following consultations with representatives of users and companies in the rail sector regarding the quality of passenger and freight services.



 

According to the regulatory agency, travelers note that competition in high-speed rail has helped improve both service frequency and prices, whereas on routes where there is no competition between carriers, ticket prices remain high or have even increased.

The survey published by the CNMC ranks long-distance high-speed rail as the highest-rated service in the Spanish rail system, with 75% of users satisfied. In comparison, the commuter rail service receives a lower rating, with a 63% satisfaction rate, reflecting that significant challenges persist in day-to-day services, especially in metropolitan areas.

Even so, passenger representatives have expressed a positive assessment of rail travel in general, although only 50% consider it their preferred option for short trips, a relevant finding in the debate on intermodality, connectivity, and the use of trains as a structural alternative to private vehicles.

Cost of business travel

For business travel, the most significant finding is that the CNMC confirms the perception that competition is working on major corridors served by multiple operators, where the entry of new players has led to a combination of greater capacity, more trains per day, and more competitive prices.

This trend is consistent with the regulator?s recent analyses of market liberalization, which already showed significant decreases in the average ticket price and a rise in rail travel relative to other modes of long-distance transportation.

Commuter and Medium-Distance Services

At the same time, the CNMC notes that for commuter and medium-distance services, passengers have rated the discounts introduced on season tickets since the last quarter of 2022 ?very positively” the discounts introduced on commuter passes since the last quarter of 2022, which have served as a catalyst for demand and supported regular travel.

Against a backdrop of inflation and pressure on transportation spending, this point reinforces the debate over which measures have been most effective: competition in high-speed rail versus subsidies and vouchers for everyday mobility.