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Step aside, Florida: Royal Caribbean is betting big on expansion in this cruise region
30.10.2024 - 18:43 / thepointsguy.com / Royal Caribbean / Cruise Line / Michael Bayley / Jason Liberty
Florida might soon have a rival when it comes to cruise getaways. Although the Sunshine State is home to the largest cruise market in the world, Royal Caribbean claims the Texas market has the potential to be even bigger — a concept that has prompted the line to invest heavily in the Gulf Coast region.
During Royal Caribbean Group's third-quarter earnings call on Oct. 29, brand executives shared that because Texas' cruise penetration is currently only half of Florida's, there's a lot of room to draw both new cruisers and those who are bored with Galveston's currently limited itinerary options.
"Texas is a similar-sized marketplace that has half the penetration [of Florida] with a very similar propensity to cruise," said Jason Liberty, president and CEO of Royal Caribbean Group.
Royal Caribbean International, one of three major cruise lines operated by Royal Caribbean Group, began 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 — including Carnival Cruise Line, Princess Cruises, Norwegian Cruise Line and MSC Cruises — have also based newer, larger ships in Galveston, following Royal Caribbean's lead.
But what sets Royal Caribbean apart is that it has also invested significant resources into developing the region instead of just homeporting vessels there.
It has done this by building a brand-new cruise terminal, which can accommodate the line's Oasis and Icon Class vessels — the largest cruise ships in the world. But, more importantly, it's working to create additional places for its ships to visit, which will offer more port variety to potential cruisers.
As TPG previously reported, Royal Caribbean is constructing two new private destinations in Mexico — the Royal Beach Club Cozumel, set to open in 2026, and Perfect Day Mexico, slated for 2027. These will add two new choices to the line's Caribbean voyages out of Galveston. (Royal Caribbean is scheduled to have four ships — Harmony of the Seas, Jewel of the Seas, Mariner of the Seas and Allure of the Seas — sailing four to 11-night cruises from Galveston at various times throughout the next two years.)
"Having assets like the Royal Beach Club at Cozumel ... will allow us to drive more and more — not only to that market but also more of the Gulf Coast and other markets that can have an easier fly-cruise experience and have a lower-cost fly-cruise experience," Liberty said.
Michael Bayley, president and CEO of Royal Caribbean International, echoed that sentiment, saying Royal Caribbean hopes to draw potential passengers from nearby Louisiana, as well as the robust and, at times, oversaturated Florida market.
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