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Royal Caribbean expands operations targeting Texas' growing cruise market

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Royal Caribbean expands operations targeting Texas' growing cruise market
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Gene Sloan Cruise team lead | The Points Guy

Royal Caribbean is making a significant investment in the Texas cruise market, aiming to rival Florida's dominance. The company sees potential for growth in Texas, where cruise penetration is currently half that of Florida. "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.

Since 2022, Royal Caribbean International has positioned some of its largest ships out of Galveston, Texas. This includes Allure of the Seas and Harmony of the Seas. Other major cruise lines like Carnival Cruise Line and Norwegian Cruise Line have followed suit by basing larger ships in Galveston.

What distinguishes Royal Caribbean's strategy is its investment in infrastructure and destinations in the region. The company has built a new cruise terminal capable of accommodating Oasis and Icon Class vessels, which are among the largest cruise ships globally. Additionally, it is developing two private destinations in Mexico: Royal Beach Club Cozumel opening in 2026 and Perfect Day Mexico slated for 2027.

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"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," Liberty stated. Michael Bayley, president and CEO of Royal Caribbean International, expressed hope to attract passengers from Louisiana as well as from Florida.

The line aims to target young families seeking short sailings. It plans to offer three- and four-night voyages on its newest Oasis Class vessel from Port Canaveral near Orlando. "There's quite a few really positive things that come with Perfect Day Mexico and the Royal Beach Club Cozumel," Bayley noted during an earnings call.

The new Mexican destinations will join existing private locations such as Labadee in Haiti and Perfect Day at CocoCay in the Bahamas. Unlike these free-access sites, entry fees will be required for both beach clubs.

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