Royal Caribbean is betting big on expansion in Galveston

Florida may soon have a rival when it comes to travel. Although the Sunshine State is home to the world’s largest cruise market, Royal Caribbean claims the Texas market has even greater potential – a concept that has prompted the company to invest heavily in the Gulf Coast region.

During Royal Caribbean CorporationDuring its third-quarter earnings call on October 29, brand executives shared that since cruise ship penetration in Texas is currently half that of Florida, there is plenty of room to attract both new cruisers and those who are already bored. GalvestonCruise options are currently limited.

“Texas is a similar sized market but has half the penetration [of Florida] with very similar travel trends,” said Jason Liberty, president and CEO of Royal Caribbean Group.

Royal Caribbean Internationalone of three major cruise lines operated by Royal Caribbean Group, which has begun positioning some of its largest ships out of Galveston, Texas, for the first time in 2022 with Allure of the Seas and more recently Harmony of the Seas. Several other lines – incl Festival cruise line, Princess yacht, Norwegian Cruise Line And MSC Cruises — is also valid newer, larger ships in Galvestonfollowing Royal Caribbean’s lead.

But what makes Royal Caribbean different is that they have also invested significant resources into developing the region rather than just bringing their ships home there.

They accomplished this by building a completely new cruise terminal that could accommodate the needs of the line. Oasis Class and Symbols boat – the The world’s largest cruise ship. But more importantly, they are working to create more places for their ships to visit, which will provide more ports for potential cruisers.

As TPG previously reported, Royal Caribbean is building two new private destinations in Mexico – Royal Cozumel Beach Clubscheduled to open in 2026, and Perfect Day Mexico, scheduled for 2027. These will add two new options to the line’s Caribbean itineraries departing from Galveston. (Royal Caribbean plans to have four ships — Harmony of the Seas, Jewel of the Seas, Mariner of the Seas and Allure of the Seas — sailing 4- to 11-night cruises from Galveston at various times vary over the course of the next two years.)

“Having assets like the Royal Beach Club in Cozumel … will allow us to drive more and more – not just to that market but to many other markets on the Gulf Coast and other markets that may have an easier and lower-cost air travel experience.” -the cost of the air travel experience,” Liberty said.

Michael Bayley, president and CEO of Royal Caribbean International, echoed that sentiment, saying that Royal Caribbean hopes to attract potential passengers from nearby Louisiana, as well as the strong and sometimes overwhelming Florida market. saturation.

What is the more specific goal of the line? Young families come from those areas and are looking for short trips. Royal Caribbean has recently had success bringing newer, larger hardware to the short-cruise mission. It has dedicated its newest Oasis Class vessel, Utopia of the seato three- and four-night sailings from Port Canaveral near Orlando.

“There are quite a few really positive things coming out of Perfect Day Mexico and Royal Beach Club Cozumel,” Bayley said on the call. “One is that we can really introduce a much larger volume of short product market from Texas, Louisiana, North Florida… This is really a great opportunity for us and we know that product That short product really attracts young families. We’ll be able to offer a short break specifically from these ports…so we think that’s actually a huge competitive advantage. .”

Royal Beach Club Cozumel and Perfect Day Mexico will join the line’s already successful private destinations: Labadee in Haiti and private islands Perfect day at CocoCay in the Bahamas. Cruisers consistently rate the latter as the route’s top destination. Royal Caribbean will also add another new beach area – Royal Beach Club Paradise Island – in the Bahamas in 2025.

While passengers can enjoy the line’s Perfect Day and Labadee locations for free, both beach clubs will require an entrance fee for entry.

Learn more about Royal Caribbean: