Forget Florida: Why major cruise lines are betting on Texas

• Cruise lines are increasingly sailing out of Texas’ only cruise port, the Port of Galveston.
• Galveston saw a record 384 cruises and 1.7 million guests in 2024 — half a million more than in 2023.
• The port is located near two of Royal Caribbean’s upcoming private resorts in Mexico.

Texas – known for chili, cowboys and increasingly, cruises.

America’s sailing culture is irrevocably intertwined with Florida. No other state has seven cruise ports, including three the world’s busiest and a check placed on the nearby Leviathan Caribbean cruise market.

What the Sunshine State doesn’t have, however, is Galveston.

The historic and unassuming Texas island is home to the state’s only cruise port. However, it has quickly become a crucial battleground as cruise companies compete for the hearts and wallets of travelers.

The Galveston boom

In 2022, Royal Caribbean opened a $125 million cruise terminal in Galveston. A year later, the port invested $53 million in expanding the Carnival terminal, which now serves as the home port for Carnival Jubilee, one of the cruise line’s largest ships built specifically for the Texas market.

In 2024, the port saw a record 384 cruises and 1.7 million visitors – half a million more passengers than the year before.

Not much compared to the world’s busiest Port of Miami, which saw 8.23 ​​million passengers in 2024. However, while Florida’s ports are nearing maximum capacity, Galveston’s market is still growing rapidly.

The Texas port plans to open a $156 million fourth terminal in November, which MSC and Norwegian will share. The launch would also mark the start of MSC’s Galveston itineraries.

“Florida doesn’t have many other terminals,” Rodger Rees, the port’s director and CEO, told Business Insider. “The market has been somewhat saturated.”

Galveston, however, has more room to expand — and with it, aspirations to one day overtake Florida’s Everglades Port as America’s third most popular cruise port.

“These ships will leave here full every Saturday and Sunday,” Rees said — a significant feat, given that Carnival, Royal Caribbean, Norwegian, Princess and MSC will all have some of their ships. larger or newer sailing from Lone. Star State this year.

For the port of Galveston, the local cruise boom has meant survival. The company almost declared bankruptcy 15 years ago, unable to generate profits from its aging cargo infrastructure, Rees said.

Now, the future is bright – in 2025, it expects to collect $84 million, a 6.4% increase from last year, thanks to the growth of the vacation business at sea.

Biggest, best and most convenient in Texas

Travelers to cities like Dallas, San Antonio and Oklahoma City are a day’s drive from Galveston. Houston and its two airports are only about an hour away—strategic, given that it’s a shorter flight there than to Miami from metropolitan areas like Las Vegas, Chicago, and Phoenix.

Compared to Florida, “Texas is a similar-sized market that has half the penetration with a very similar propensity to cruise,” Jason Liberty, president and CEO of Royal Caribbean Group, told analysts in late October 2024.

Equally important, Galveston is also close to popular ports in eastern Mexico, the eastern Caribbean and Central America, including Norway’s private island of Belize.

Location is just as important to Royal Caribbean, which has two private resorts – Perfect Day Mexico and Royal Beach Club Cozumel – scheduled to open in Mexico in 2026 and 2027.

“Having assets like Royal Beach Club will allow us to serve more Gulf Coast markets that can have an easier travel experience with flights and lower costs,” added Liberty.

Royal Caribbean Resorts – in conjunction with Symphony of the Seas, one of the world’s largest cruise ships, sailing from Galveston in 2026 – could continue to catapult its popularity.

“We’re getting bigger and better ships here,” the port’s CEO said. “Why go all the way to Florida?”