France high-speed rail: Ouigo growth reshapes market as Inoui capacity shrinks

Fewer Inoui services and more Ouigo: a major shift in the TGV offer

Between 2017 and 2024, average Ouigo (low-cost high-speed train) ticket prices increased sharply, rising by 75%, while the price per kilometer climbed by 71%. Average fares increased from €19.80 in 2017 to €34.70 in 2024.

By contrast, TGV Inoui recorded only an 8% increase in average ticket prices and an 11% rise in price per kilometer — notably below the rate of inflation. The average ticket price increased from €44.70 in 2017 to €48.40 in 2024.

However, the biggest change concerns capacity. Over the same period, seat-kilometers offered on TGV Inoui services declined by 13%, while Ouigo capacity surged by 185%.

As a result, travelers face reduced seat availability on traditional TGVs with holders of SNCF loyalty cards facing strong discrimination as discounts apply only for Inoui trains. The consequence is shown in often fully booked TGV services. Compounding the issue, Ouigo and Inoui tickets cannot be combined for round-trip journeys for Avantage cardholders.

Ouigo expands as premium offer loses ground

Market share shifts further highlight the evolving strategy of SNCF and the broader high-speed rail market.

TGV Inoui now represents just 64% of passenger-kilometers transported, signaling a significant decline for SNCF’s flagship premium brand. Meanwhile, the low-cost Ouigo service has expanded to reach a 20% market share.

The merger of Eurostar and Thalys continues to reshape the international market, with the combined entity, operating services from Paris to the UK, Belgium, the Netherlands and northern Germany, now holding a 7% share. TGV Lyria, the joint venture between Swiss Federal Railways and SNCF serving Switzerland, accounts for 4%.

New entrants such as Trenitalia and Renfe remain marginal players for now, each capturing around 1% of the market in 2024.

Fnaut study concludes that the French TGV offer is changing its face with more Ouigo and less Inoui. However, this does not necessarily happen for the benefit of regular travelers. If low-cost is gaining ground, the classic offer is shrinking and becoming saturated.

SNCF explanation over the sharp price increase

When questioned, SNCF Voyageurs “does not dispute” this figure but seeks to demonstrate that this increase is primarily the result of the evolution of the offer. Faced with the controversy, Alain Krakovitch, head of TGV and Intercités, spoke out via a post on LinkedIn.

“Yes, Ouigo prices have evolved over the past 13 years, since the creation of our low-cost brand. However, the Ouigo offer also evolved. We went from the first services departing only from secondary stations to departures from the major Paris train stations (Gare de Lyon, Montparnasse…). We went from Ouigo being focused on short trips (Lyon, Bordeaux…) to much more distant destinations (Hendaye, Perpignan, Brest). These two facts, significant and especially desired by our customers, alone account for 80% of the price increase in recent years. The last 20% of the price increase is related to the rise in costs,” he stressed on Linkedin.