[Innervisio]

A personal note from anecdotes i had this year on Spanish trains.

I used the company Iryo, which its mother company is Trenitalia. After living in Germany, i was positively baffled by the quality of the trains, the cleanliness, the speed and most even more relevant and what made me jealous: The price.

A ticket Valencia - Madrid costed 14eur. Which immediately made me wonder about how do they even manage to make money?

In Germany, the high speed trains have the same quality, but by no means the price. Impossible to see that price for a Deutsche Bahn ticket.

For visiting other cities in Spain, it’s always cheaper to just pay a flight to Madrid and get a high speed train to somewhere. But this is also benefiting from the geographical position of Madrid into the country.

Kudos to Spain for this and i wish they can keep low prices with high quality of travel for its citizens.

[zxspectrum1982]

Iryo and Ouigo only arrived in Spain recently. They are selling tickets at cost or even below cost to gain some market share. Ouigo has already stopped some routes because the losses were insurmountable even in a promotional period.

If you want to look at actual prices, look at RENFE (AVE) prices. Even RENFE's own AVLO loses money, it's there only to counter Iryo and Ouigo until they will rise prices or go bankrupt.

[f233f2]

+1, Iryo and Ouigo are recent and they are losing money. Renfe has always been tremendously expensive - more expensive than a car or plane.

These train travel success stories are anti-personal transportation propaganda. They want to push you to using trains and then they will raise the prices - they want you not travelling anywhere if you are poor.

[fooker]

Not everything has to make money, especially public infrastructure.

[diggan]

Also, a good railway increases profits elsewhere, in addition to fares, as people can cheaply and relatively comfortable travel across the country.

[Innervisio]

Correct, but Iryo is a private company, although the railway in Spain is publicly maintained i guess by Renfe. So i believe Iryo should make money, specially (as mentioned in another comment below) it's part of Trenitalia. But i'm definitely not an economist.

[angio]

Trenitalia has to make money since it's partly a private company.

[cordenr]

They seem to use a similar model to low cost airlines. Depending on when you travel and when you buy the ticket, the price varies dramatically.

I recently travelled midweek from Lleida to Madrid return for €40, but I've also paid more than €100 for the same when traveling around the weekend.