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.