Royal Caribbean Wants to Own Texas Market

Royal Caribbean Wants to Own Texas Market

Royal Caribbean Group has set its sights on the Texas cruise market.

“We’re expecting to own the Texas market as it relates to cruising into the Caribbean,” said Michael Bayley, president and CEO of Royal Caribbean International, speaking on the company’s first quarter earnings call April 30.

A new terminal that opened in 2022 in Galveston will now be supported by Perfect Day Mexico, Royal Caribbean’s destination development in the Gulf, which is expected to soft-open in the fourth quarter of 2027 before fully ramping through 2028.

The project had encountered a temporary pause due to environmental permitting issues, but Bayley confirmed on the call that those issues have been resolved and construction has resumed.

“All of that is now behind us,” he said.

When complete, Perfect Day Mexico will anchor what Royal Caribbean sees as a transformational combination of assets serving the Gulf and Texas markets: Perfect Day Mexico paired with Royal Beach Club Cozumel, expected to open in early 2028.

“The combination of the hardware, the brand and the destination, we believe, is going to be a massive accelerator for overall financial performance for the business,” Bayley said.

“(Texas) is a market which is much larger than Florida and its penetration rate is much lower than Florida,” Bayley said.

CEO Jason Liberty elaborated on the geographic reach the Galveston hub has.

“It’s also going to unlock, more potential in the West, really kind of west of the Mississippi,  as the cost to get to Houston and so forth is less than other parts of the country,” he said.

MSC Opens New Cruise Terminal in Miami

MSC Cruises officially opened its new massive cruise terminal in PortMiami during a ribbon-cutting ceremony on Saturday.

The event was attended by key executives of the company and partners, in addition to local and national authorities from the United States and Italy.

Pierfrancesco Vago, executive chairman of MSC Group’s Cruise Division, took the stage during the ceremony to highlight the new facility and thank all partners involved in the project.

Also present were Rick Sasso, MSC Cruises’ chairman in the United States; Pierroberto Folgiero, CEO and managing director of Fincantieri Group; Mariangela Zappia, Italian ambassador to the United States; On. Edoardo Rixi, Italian deputy minister of infrastructure and transport; J. Alex Kelly, Florida secretary of commerce; Heidi Webb, port director; and Daniella Levine Cara, mayor of Miami-Dade county.

According to the company, the new MSC Miami Cruise Terminal is the most technologically advanced and sets a global benchmark for cruise infrastructure.

The new facility is also the first in the industry to implement a complete biometric journey with digital identity verification, MSC said, to provide a seamless embarkation experience.

Designed by global design firm Arquitectonica and built by Fincantieri Infrastructure, the MSC Miami Cruise Terminal is able to process up to 36,000 passengers daily.

Three ships can dock simultaneously, with the facility occupying 492,678 square feet of area.

In his speech, Vago highlighted various aspects of the project, including its facade artwork and a new automatic baggage handling process designed in partnership with Leonardo.

“It’s a fully automated system that will load 27,000 pieces of luggage each day,” he said, noting the designers did a fantastic job with the project.

Vago also said that the new terminal focuses on passenger experience and sustainability.

“Our new terminal not only combines innovative design and technology but is also designed with energy efficiency and environment in mind,” he explained.

Among the green features of the facility is its shore power capability and a LEED Gold Certification.

The new terminal was developed to provide an experience where “every step is carefully streamlined for a stress-free embarkation,” the company added.

The facility will serve both MSC Cruises’ and Explora Journeys’ ships sailing from PortMiami, including MSC Cruises’ new flagship, the MSC World America.

Currently sailing to Florida after being delivered, the LNG-powered vessel will be named during a ceremony at the terminal on April 9, 2025.

The terminal also offers a six-level garage with over 2,400 parking spaces, which can be reserved in advance via the MSC for Me app or the MSC Cruises website.

There is a covered drop-off zone for buses, taxis and ride shares. All forms of arrival share a covered path straight to the terminal’s main entrance.

Guests who have opted into the biometric journey can simply scan their passport and look at the camera of one of the terminal’s 18 biometric face pods for validation.

The terminal uses 22 biometric E-gates to finalize the embarkation process before guests enter the gangway.

According to MSC, embarking will now be performed on the terminal side rather than on the vessel, allowing guests to start their holiday immediately.

Other highlights of the facility include a design that favors natural light and spacious waiting areas facing Biscayne Bay.

Guests of the MSC Yacht Club, the cruise line’s luxury “ship-within-a-ship” concept, also have exclusive access to a private lounge to enjoy drinks and snacks.

Guests will discover seven curated works of art commissioned through the Miami-Dade County Art in Public Places program.

The most striking piece is a first-of-its-kind 10,816-square-foot digitally projected installation that adorns the exterior of the terminal, using real-time NOAA oceanic data to create an ever-evolving display of tides, currents and weather patterns.

Additional exclusive artwork will enhance the MSC Yacht Club’s private lounge.

Galveston to Support Cruise Growth with Updated Master Plan

The Galveston Wharves Board of Trustees announced plans to fund an updated 20-year Strategic Master Plan and to continue to support the development of additional cruise infrastructure.

According to a press release, the plans were voted on Feb. 6, 2025, and come after a record year for cruise operations in 2024.

As the nation’s 4th-ranked cruise port, Galveston saw 3.4 million passenger movements through its three terminals last year.

The port is set to open a fourth cruise terminal in November, which will serve as a homeport for MSC Cruises and Norwegian Cruise Line.

Galveston forecasts more than 400 sailings and almost 3.6 million passenger embarkations and debarkations will take place at the port this year.

The current master plan, adopted by the Wharves Board in 2019, includes plans to double the number of cruise terminals from two to four, to build an internal roadway to accommodate more port traffic and expand its cargo complex.

These major projects are either completed or in various stages of construction, the Galveston Wharves Board said.

“Our updated master plan will look at growth opportunities in all of our business lines – cruise, cargo and commercial,” said Rodger Rees, Galveston Wharves port director and CEO.

“The board’s unanimous vote to support cruise infrastructure growth reflects the economic benefits that our cruise business provides and allows us to continue to invest in our cargo business,” he added.

The port’s cruise industry is a major economic engine for local and regional businesses, the Galveston Wharves Board said.

In 2023, cruise operations generated 4,547 jobs for Galveston area residents, $733 million in business revenues, $291 million in personal income and $25 million in state and local taxes.

“The updated master plan will evaluate all that we’ve accomplished to date and lay a foundation for continued growth based on new cruise and cargo forecasts and port and community goals,” Rees said.

“The master plan has served us well. It’s been our roadmap for major capital projects to grow our business and maximize port assets while managing potential community impacts.”

According to the Galveston Wharves Board, much has changed in the last five years, with the cruise business growing faster than forecast and construction costs continuing to rise.

“A big focus in the master plan update will be how we can continue to efficiently manage traffic on and around Harborside Drive as our cruise, cargo and commercial businesses grow. Our current master plan includes a 2.25-mile-long internal roadway, cueing lanes at cruise terminals and on-site parking garages,” Rees added.

The port also wants the updated plan to consider locations for the USS Texas, public areas on the waterfront and safely connecting the port’s waterfront commercial areas to downtown.

Several items in the current plan will be addressed, including dock and wharf improvements, development potential for port acreage on Pelican Island, drainage improvements and a public boardwalk, to name a few.

Master plan consultants from Bermello Ajamil and Partners Inc. will evaluate these projects, update cost estimates and identify new opportunities.

Consultants will hold workshops and public meetings to gather input from Wharves Board members, port partners and the community.

“Armed with this information, we’ll be prepared to continue to maximize our port assets and remain a strong community asset,” Rees said.