Royal Caribbean eyes new Galveston terminal to own Texas market
Just when you thought Galveston's cruise boom couldn't get any bigger, the Port of Galveston is teasing more growth from Royal Caribbean.
Not long after Carnival Cruise Line announced that Carnival Festivale will launch from Galveston in 2028 and following hints that Disney will soon expand its presence at the port, Port of Galveston CEO Rodger Rees revealed that Royal Caribbean wants the port's newly proposed fifth cruise terminal.
While Rees stopped short of laying out specifics of the partnership in an interview with Galveston's The Daily News, he didn't dance around who's driving the project.
"It is Royal Caribbean," Rees told The Daily News. "I mean, obviously; Royal Caribbean owns a building right next to it. They're interested in expansion."
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Royal Caribbean wants to own Texas cruising
If you've followed Royal Caribbean's growth in Galveston in recent years, you'll know this tracks. The cruise line has been slowly setting the stage to dominate the Texas market.
"If you look at the opportunity that exists in Texas, it's a market which is much larger than Florida and its penetration rate is much lower than Florida," Royal Caribbean President Michael Bayley said during the company's Q1 2026 earnings call on April 30.
"So, we're expecting to - I guess I'm going to use this word - we're expecting to own the Texas market as it relates to cruising into the Caribbean and Perfect Day Mexico, combined with Royal Beach Club in Cozumel, will be the centerpiece of that, combined with, of course, our Icon-class ships," Bayley said.
Related: Why you should book a Royal Caribbean Oasis or Icon class ship
Royal Caribbean already built one $125 million Galveston terminal capable of handling its largest ships in 2022. News of the proposed new cruise terminal - to be built right beside the cruise line's existing facility - comes as Royal Caribbean prepares to send Icon of the Seas to Texas in 2027, as the first Icon-class ship to homeport ever there.
Expansion at the Port of Galveston also supports the cruise line's new developments in Mexico. Despite delays and setbacks, Royal Caribbean continues to advance its plans to build Perfect Day Mexico in Costa Maya and Royal Beach Club Cozumel.
Why cruise lines are investing in Galveston
The demand math behind major cruise lines' plans to bring newer and larger ships to Galveston is hard to ignore.
"The demand for ships out of Galveston has been tremendous," Rees told The Daily News. "There are a variety of reasons this is happening, but this market here is serving 46 million people now within an eight-hour drive."
That number is up about six million from the port's previous master plan.
Related: Royal Caribbean cancels more Labadee cruise stops
The Port of Galveston's updated 20-year master plan doesn't just envision growth through a fifth cruise terminal. Officials are proposing an entirely new commercial area anchored by the Battleship Texas at Pier 15, plus hotels, retail, restaurants, greenspace, and multifamily housing - essentially a new mixed-use district built around the cruise business.
For families who cruise out of Galveston, it's a project to watch. The new terminal is still firmly in the planning phase, and Rees didn't share a timeline for construction or expected opening date. But paired with Icon of the Seas' upcoming Galveston debut in 2027, plus Oasis-class Symphony of the Seas and the recently amplified Liberty of the Seas rounding out the Texas lineup that season, it's clear Royal Caribbean sees Galveston as a long-term growth market.
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This story was originally published July 16, 2026 at 10:26 AM.