While living in northern Italy, I was impressed by the value, quality, and dependability of the rail service. For example, my ride on the high-speed Italo train from Bologna to Rome was one of the best train journeys I’ve ever had. An article in Railway Technology highlights the surprising success of private railway companies and the introduction of high-speed rail services like Italo.
Despite Italo shifting Trenitalia’s 100% market cap […] Trenitalia actually saw an increase in revenue during that period. High-speed rail was, and is, competing with low-cost flights, and despite the shift in market cap between the two train operators, they were actually winning more passengers from air to rail overall than from one another. […] The growth of both Italo and Trenitalia is also thanks to the fact that Italo’s growth was due to induced demand: if you build it, they will come. Or, you could say that the market for low-cost high-speed rail didn’t exist until Italo created it.