By Jacob Passy

The cruise-ship industry is embracing a destination that might surprise you: Galveston, Texas.

This island city of 53,000 people on the Gulf Coast may not be synonymous with luxury travel, but Galveston is the fourth-busiest cruise port in the U.S. The city, which served 1.7 million passengers last year, is opening a new cruise terminal later this year that could further build its appeal.

Galveston's proximity to major population centers like Houston and Dallas means it has a large market of potential passengers: Around 50 million people live within a 12-hour drive. That is more than twice as many people as live in Florida, home to the three largest U.S. cruise ports: Miami, Fort Lauderdale's Port Everglades and Brevard County's Port Canaveral.

The two airports in Houston, about an hour's drive away, offer additional access. Jasper Ha, a 44-year-old flight attendant and frequent cruiser from San Diego, says it is usually cheaper to fly to Houston than Florida. He finds good deals for hotels around Galveston, and points to the destinations that Galveston cruises offer.

"You get to go to different ports that are not typically found on a cruise out of Miami or Fort Lauderdale," Ha says, adding that he enjoys taking in Galveston's own attractions, too.

Ha isn't the only one who loves the city. One of Carnival's newest ships, the Jubilee, is painted with the Texas Lone Star in a nod to its home port. "We made it clear it's not going anywhere," says Chris Chiames, chief communications officer for Carnival Cruise Line.

Cruises have been sailing out of Galveston since the 1970s. For years, the port was known for serving older, smaller cruise ships that made it an attractive option for passengers seeking discounted sailings.

"We used to have to tell people if you want a new ship, you're going to have to fly to Florida," says Kelley Austin, a franchise owner with travel-agency franchise network Cruise Planners.

The port's emergence as a major cruise hub began in earnest when Carnival Cruise Line started sailing out of Galveston in 2000.

Then Royal Caribbean agreed in 2019 to develop a new cruise terminal, says Rodger Rees, Galveston's port director. Rees previously served as Port Canaveral's chief financial officer. A new Royal Caribbean terminal, designed to accommodate the cruise line's largest ships, opened in 2022. This fall, a new terminal that will serve MSC Cruises is set to open. The Disney, Princess and Norwegian cruise lines also sail from Galveston.

"After the pandemic, people started coming down here in droves," Rees says.

Galveston's location presents opportunities and drawbacks alike to cruise lines. Markets like the Bahamas and the Eastern Caribbean are well served by Florida ports, says Lizzie Dove, a Goldman Sachs analyst. Texas is closer to places like Cozumel in Mexico that can take longer to reach from Florida's Atlantic Coast.

At the same time, Galveston's location means it takes longer to get to many destinations, so sailings out of Galveston are typically longer than those out of Miami and Canaveral.

Cruise companies are doing what they can to make that work in their favor. Royal Caribbean chose Mexico for the next iteration of its "Perfect Day" private island concept, which combines the tranquility of a secluded beach with amenities such as bars, restaurants and a sizable water park.

The private destination in Quintana Roo is expected to open in 2027 and will feature similar amenities as Royal's Perfect Day at CocoCay in the Bahamas. It will build out Royal's presence in Mexico, which also includes the forthcoming Royal Beach Club in Cozumel.

Both exclusive options are made for travelers like Ha. "They're unique experiences you can't get anywhere else in the Caribbean," he says.

Write to Jacob Passy at jacob.passy@wsj.com

(END) Dow Jones Newswires

February 25, 2025 09:00 ET (14:00 GMT)

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