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.

Majestic Princess Swaps Galveston for South America in 2026-27

Instead of offering cruises departing from Galveston, the Majestic Princess will sail in South America during the 2026-27 winter season.

Initially scheduled to sail from Texas to the Caribbean, the Royal-class ship saw its four-month season in the region cancelled in early April.

At the time, Princess Cruises said that the decision was part of a “broader global fleet redeployment strategy.”

The company then announced, in late May, its plans to operate the Majestic Princess in South America and Antarctica.

Running between November 2026 and January 2027, the ship’s season in the region includes five itineraries and six departures.

The deployment is highlighted by scenic cruising in Antarctica, including two overnight experiences in the Antarctic Peninsula.

Ranging from 15 to 33 days in length, the ship’s itineraries in the region will also mark Princess’s debut in the Beagle Channel Fjords and Glacier Alley.

The Majestic Princess is also set to visit Brazil, Argentina, Uruguay, Chile and the Falkland Islands as part of cruises departing from Bridgetown, Buenos Aires and San Antonio.

In other recent deployment news, Princess announced that the Sapphire Princess, which is sailing in South America in 2025-26, will reposition to Asia.

Sailing along with its sister ship, the Diamond Princess, the ship will offer a series of cruises departing from Singapore and Yokohama.

The 14- to 42-night itineraries feature visits to destinations in Southeast Asia and the Far East, such as Hong Kong, Ha Long Bay and Ko Samui.

With the Majestic in South America and the Sapphire in Asia, Princess won’t offer cruises departing from Galveston in 2026-27.

The company is set to operate a farewell season from the Texas homeport in 2025-26, which will include the Regal Princess offering four- to eight-night cruises to destinations in the Western and Southern Caribbean.

MSC USA: Readying for Big Moves

“We’re excited about how the product is positioned in the U.S. market with very clear points of distinction, with our European style and American comfort, and how we bring that together,” said Lynn Torrent, executive vice president and chief commercial officer.

Torrent said MSC had tweaked the product for U.S. passengers and was gaining ground on marketing and driving wider brand awareness ahead of the MSC World America’s arrival in Miami this spring.

“We’re expanding our U.S. deployment,” she continued. “We’re adding Galveston this year, a second ship in Port Canaveral and sailing to Alaska from Seattle in 2026.”

Much of the immediate focus has been revealing feature after feature on the new World America for her Miami-based deployment of week-long cruises. These include a new sports bar concept and a comedy club, in addition to the first Eataly at Sea concept which will feature dishes and cocktails only available on the World America.

A new terminal with shore power will be awaiting World America in Miami, and a second new terminal will be ready for the MSC Seascape in Texas.

“We’re investing significant yin marketing and trade sales support in Texas,” said Torrent.

More ships in the market mean MSC has the attention of travel advisors, said Torrent, and continues to enhance tools and training options. Travel agents can benefit from lunch-and-learn seminars, virtual training, and more. Torrent said the company had a lot of on-the-ground support for advisors in Texas.

While Torrent focuses heavily on North American deployed ships, the company is also busy sourcing guests for cruises in Europe and elsewhere.

“We have a significant offering in the Mediterranean and Northern Europe, and the World Europa and Euribia have driven more interest. The Yacht Club is popular with American guests looking for a premium, unforgettable experience.”

2026 brings more deployment and more berths to the U.S. market, as MSC will debut in Alaska, with the Poesia offering a week-long program from May to September.

“Alaska is a marquee destination. It completes our global portfolio,” Torrent said. “We think there is a lot of demand globally for Alaska. There is significant momentum already.”

Excerpt from the Cruise Industry News Quarterly Magazine Winter 2024-25