Ouigo low-cost train: railway revolution or cut-price train?

Written by Sophie Renassia

Published today

Whether you're a train enthusiast or simply an occasional traveler, it's hard to ignore OUIGO today. With its attractive low fares, consistently full trains and unapologetic low-cost positioning, the brand has reshaped travel habits across France.

But behind those €10, €20 or €30 tickets lies a complex equation: offering low fares without compromising service quality or business viability. So, is OUIGO just a “cheap” version of the TGV, or a genuine gateway to low-carbon travel accessible to everyone?

To explore the question, Benjamin invited Jérôme Laffon, Managing Director of OUIGO, to speak on our podcast Je t’offre un rail?, the podcast designed to make you fall in love with train travel.

The OUIGO model: low cost, but above all “smart cost”

A clear positioning

Jérôme Laffon embraces the label:

“It's low cost that we openly assume. (...) We define ourselves more as a smart coaster, meaning we don’t want to compromise on service quality.”

The founding idea is simple: make high-speed rail accessible to as many people as possible, without turning the experience into a pay-wall of mandatory add-ons.

How are low fares made possible?

Two structural levers make the pricing model work:

1. Maximizing train utilization
“The OUIGO trainset is maintained at night, which allows it to run as much as possible in a very intensive schedule,” explains Jérôme Laffon.

2. A very high seat occupancy rate

“A half-full OUIGO isn’t economically viable for us.”

This is why OUIGO only operates on routes where demand is high enough to ensure near-full capacity.

Transparent optional extras

While OUIGO does operate on an optional-add-on model, the weight of extras remains limited:

“Options account for between 6 and 10% of our revenue, whereas some low-cost airlines are closer to 30 or 40%.”

The philosophy remains clear: an attractive entry price, with extras chosen, not imposed.

A unique exchange and reuse system

OUIGO tickets are non-refundable but can be exchanged. To go further, the operator launched a circular-economy-inspired service:

“OUIGOSWAP allows a customer to put their ticket back on a platform and, if someone buys it, they recover 80% of the original price.”

A rare innovation in the French rail sector.

OUIGO: large-scale modal shift and innovation

A strong environmental impact

Beyond affordability, OUIGO sees itself as a concrete lever in transport decarbonisation:

“Half of our customers wouldn’t have taken the train if OUIGO hadn’t existed,” says Jérôme Laffon.

Among them, around 20% wouldn’t have traveled at all, and 30% would have opted for a car, plane, bus or rideshare.

Since its launch:

“80 million journeys have shifted from air or road to rail.”
And the trend continues: “In 2024 alone, that’s 25 million journeys.”

Outstanding carbon performance

Whether high-speed or OUIGO Train Classique, all services run on electricity:

“Rail emits 3 g of CO₂ per passenger-kilometre. Electric cars are around 50–60, conventional cars 100, and planes 260.”

With over 160 million journeys completed since launch, OUIGO has become a major lever for modal shift in both France and Spain.

A fleet in transformation

To support this growth, OUIGO is investing in a new generation of rolling stock featuring increased seating capacity, individual power outlets, a relaxation area, bike racks, improved glazing and a water-recycling system.

Some features are still under evaluation:

“On-board catering is expensive. I’m not sure the equation works for OUIGO.”

In summary, OUIGO is neither a “cheap TGV” nor a marketing gimmick. It is a structured rail model designed to attract new travellers to low-carbon mobility. By embracing its low-cost DNA while seeking the right balance with customer experience, the brand has helped reshape how millions of people travel.

Written by Sophie Renassia

Issue du monde de la communication et des médias, Sophie est Responsable éditoriale chez HOURRAIL ! depuis août 2024. Elle est notamment derrière le contenu éditorial du site ainsi que La Locomissive (de l'inspiration voyage bas carbone et des bons plans, un jeudi sur deux, gratuitement dans ta boîte mail !).

Convaincue que les changements d’habitude passent par la transformation de nos imaginaires, elle s’attache à montrer qu’il est possible de voyager autrement, de manière plus consciente, plus lente et plus joyeuse. Son objectif : rendre le slow travel accessible à toutes et tous, à travers des astuces, des décryptages et surtout, de nouveaux récits.

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