Royal Caribbean expands in Texas, Eyes major growth in the Gulf Coast cruise market

Friday, November 1, 2024

Royal Caribbean Group is setting its sights on Texas as a high-potential market for growth, according to CEO Jason Liberty in the company’s third-quarter earnings call.

Liberty highlighted Texas as a major opportunity, noting that while the state’s cruise market is larger than Florida’s, it has only half the penetration rate.

To capitalize on this untapped potential, Royal Caribbean has made significant investments in the region. The company opened a state-of-the-art terminal in Galveston in 2022, designed to accommodate its largest ships, including the Oasis and Icon classes.

This new terminal is seen as a cornerstone of Royal Caribbean’s Gulf Coast strategy, enabling efficient service for high-capacity vessels and positioning Texas as a premier departure point for short Caribbean cruises.

Royal Caribbean’s plans for the region don’t stop at the terminal. Upcoming projects include the Royal Beach Club in Cozumel and a larger-scale development called Perfect Day Mexico.

The Perfect Day Mexico destination will offer guests an exclusive island experience, expanding the company’s popular “Perfect Day” series, which provides unique Caribbean experiences.

“Perfect Day Mexico is strategically located to deliver exceptional vacation experiences in both the Eastern and Western Caribbean,” Liberty said. “It also allows us to grow the Gulf Coast market, supporting our vision for every guest on a Caribbean itinerary to enjoy a Perfect Day experience.”

Michael Bayley, president and CEO of Royal Caribbean International, echoed Liberty’s optimism, emphasizing the increase in short cruises from Texas, Louisiana, North Florida, and Tampa.

Bayley explained that these short breaks, combined with destinations like Perfect Day Mexico and the Royal Beach Club in Cozumel, offer a competitive advantage by delivering a premium experience to passengers.

“The Galveston terminal has been a huge success post-pandemic, and it’s equipped to handle large Oasis- and Icon-class ships.

This capability allows us to offer extraordinary short cruises to these exclusive destinations, creating a strong product offering from Texas and Gulf Coast ports,” Bayley added.

As Royal Caribbean ramps up its presence in Texas and surrounding Gulf Coast states, the company is poised to tap into a rapidly growing market, leveraging both new infrastructure and high-demand Caribbean experiences to drive passenger growth and meet the evolving expectations of cruise travelers in the region.

Tags: caribbean, cruise travelers, cruises, Gulf Coast states, royal caribbean, Texas