Recent data from the Cruise Lines International Association shows the global cruise industry is expected to grow by 10% over the next four years, as an increasing number of travelers look to the seas for the first time and cruise lines become more competitive with bigger ships and more amenities.
What they're seeing: That trajectory bodes well for ports like Galveston that have become major U.S. hubs for cruise activity. Galveston is currently the largest cruise port on the Gulf Coast, according to year-end 2023 stats, and the fourth-largest in the country following the ports of Southeast Florida.
New projects recently completed and those now under construction will help increase the Port of Galveston’s capacity for cruise business. Galveston broke ground earlier this year on a $151 million new terminal at Pier 16—the port’s fourth cruise terminal. That followed the opening a the third terminal at Pier 10 in 2022. Passenger traffic through the port is up nearly 11% so far this year over 2023 and 6% above the increase that was forecast at the beginning of the year. Ten different ships representing dozens of sailings have cruised out of Galveston so far in 2024.
The big picture: Figures from the recent Cruise Lines International report suggest that about a quarter of those cruising today are first-time passengers and the average age of passengers is skewing younger. A look at cruise demand by Tourism Economics shows that cruise cabin nights sold as a percentage of total U.S. travel nights (including hotel and short-term rentals) will increase to 3.1% this year, up from 2.5% in 2019 and 2.8% in 2023. Globally, 2025 is expected to break passenger volume records.
An opportunity: While it’s unclear how many Galveston cruise passengers drive to the port vs. fly into Bush or Hobby airports, many choose to stay at least one night in the area on the front or back side of their voyage. That presents an opportunity for hotels in Houston and Galveston to package experiences targeting the cruise travelers.
Written by A.J. Mistretta
