Princess Moves to Galveston?!?

[babygrljaz]

Article posted in the Houston Chronicle last year...

 

As cruise lines drop Bayport, terminal faces another empty period

 

As cruise lines move on, docks will go unused

 

August 7, 2015 | Updated: August 7, 2015 10:18pm

 

Less than three years after Port of Houston commissioners authorized millions of dollars in incentives to lure a pair of cruise lines to its long-empty Bayport Cruise Terminal, the two operators have decided to move on and leave the loading docks deserted again.

 

 

"I'm disappointed, but I'm not surprised," said state Sen. John Whitmire, D-Houston and a longtime critic of the Bayport terminal. He reiterated his complaint that the $108 million project had wasted taxpayer money because passengers leaving from the area already have a better option for cruising out of Galveston directly on the Gulf of Mexico rather than through the crowded, often foggy Ship Channel.

 

"No one with common sense would build cruise ship capacity where you have to go inland to pick up your passengers," Whitmire said. He derided the project as "a boondoggle."

 

The decision revealed this week by Norwegian Cruise Lines that it was dropping the Pasadena terminal from its 2016-17 cruise schedule took port officials by surprise.

 

"We have not heard directly from them regarding their intentions beyond the 2015-2016 cruise season," spokeswoman Lisa Ashley said Friday.

 

Already, Princess Cruises had decided to end its Bayport business as it reshuffles its ship lineup worldwide. Both lines will set sail from the Houston Ship Channel for the last time next spring.

 

It's the latest setback for a terminal that, except for a few weeks hosting Galveston cruise ships redirected because of Hurricane Ike, sat empty from its completion in late-summer 2008 until Princess and Norwegian signed their contracts.

 

In an effort to kick start the cruise business here, the Port Authority commission voted in 2012 to pay Princess and Norwegian a combined $6.7 million to sign on at Bayport. Their contracts also waived rent or any docking fees.

 

'Not fitting in'

 

Despite the business - 52 cruises left the terminal between last fall and the spring, up from 25 the year before - the terminal has been leaking money. After paying incentives of $80,000 per departure, the terminal recorded a net loss of $609,000 in its last quarter of 2014, Ashley said.

 

Port officials also have touted the cruise terminal's creation of jobs and spending by cruisers passing through the city. One study found that each sailing brought $2 million in economic impact to the region, $50 million annually and more than 200 jobs.

 

But Monty Mathisen, managing editor of Cruise Industry News, which reported Norwegian's decision to drop Houston for 2016-17, said Bayport must not have provided the profits the big cruise lines wants.

 

"It's no secret, they're going to put the ships where they can make the most money," Mathisen said. "And I guess Houston's not fitting in to that picture."

 

Princess Cruises spokesman Brian O'Connor framed it more as a domino effect: "We move our ships around all the time, and Asia has become kind of a new emerging market for the cruise industry. Asia, as well as Australia."

 

Wanting in on the Australian market, Princess decided to move the Emerald to Australia this summer, which led to moving the Caribbean Princess to Fort Lauderdale to consolidate ships.

 

"It made more sense for us to have our Caribbean business concentrated in one port," O'Connor said.

 

Demand still strong

He said demand was strong in Houston and the company will consider the Bayport terminal again in the future. Princess had pitched Houston as a closer port than Florida for some customers to fly into. It also saw Houston as a market with a lot of customers within driving distance.

 

"When you look at us having a need to move one of our ships to Australia, the review of our economics sort of starts over," he said. "I wouldn't say we found any downsides (to Houston)."

 

Ricky Kunz, head of marketing and trade development for the Port Authority, has said that establishing a new cruise terminal takes time. Proponents of the cruise terminal say that Houston's airport accessibility and the draw of a big city can attract cruise-goers.

 

But with Galveston's robust cruise business so close by, cruising is the rare industry in which Houston is the underdog. Getting to Houston, cruise liners have the extra travel time up the Ship Channel.

 

"That's one thing counting against Houston - going up into the city," Mathisen said, echoing Whitmire's complaints.

 

"On top of all that, you've got another port in Galveston," he said.

 

The Caribbean Princess will make 23 more departures from Houston, with about 72,000 passengers, through next spring.

 

Whitmire offered another suggestion for the Bayport Cruise Terminal once the ships are gone.

 

"It's a great facility," he said. "It'd probably make a great school, training facility."

[Susie51]

There is a nonstop United flight from Sacramento to IAH so we have cruised out of Bayport and Galveston.

 

For me Bayport was not set up well. Galveston was not well organized. After embarkation, both cruises were wonderful.

[JoMoe]

It look like Princess has their 2018 spring schedule in place. The only US ports of departure are southern FL or CA, nothing in the middle of the US. I was hoping they would go out of NOLA, Galveston, Mobile, but it looks like they are not.

 

Disappointing

Edited June 2, 2016 by JoMoe

[JoMoe]

It look like Princess has their 2018 spring schedule in place. The only US ports of departure are southern FL or CA, nothing in the middle of the US. I was hoping they would go out of NOLA, Galveston, Mobile, but it looks like they are not.

 

Disappointed

[moki'smommy]

We were on one of the cruises with delayed departure (24 hour delay) due to fog. I have no idea what it cost Princess to transport us to and from the hotel and pay for the hotel. Then they lost the revenue that we might have spent on the ship during that additional day, had to re-route the ship, and account for whatever they did for the passengers on board who got an extra day on the ship at no charge. I'm sure there was cost in rearranging air for those who booked thru Princess, etc.

 

Bottom line was that the ship was anchored near Galveston waiting to be able to enter the channel. True, if we had been cruising out of Galveston, each guest would have paid more for transfers. But I don't see that Princess cares about that. They do care about the money they lost due to weather issues. I suspect the subsidy covered that. End the subsidy and the ship will go elsewhere!

[iceleven]

We were on one of the cruises with delayed departure (24 hour delay) due to fog. I have no idea what it cost Princess to transport us to and from the hotel and pay for the hotel. Then they lost the revenue that we might have spent on the ship during that additional day' date=' had to re-route the ship, and account for whatever they did for the passengers on board who got an extra day on the ship at no charge. I'm sure there was cost in rearranging air for those who booked thru Princess, etc.

 

Bottom line was that the ship was anchored near Galveston waiting to be able to enter the channel. True, if we had been cruising out of Galveston, each guest would have paid more for transfers. But I don't see that Princess cares about that. They do care about the money they lost due to weather issues. I suspect the subsidy covered that. End the subsidy and the ship will go elsewhere!

 

Having never cruised out of any port in Texas, I am curious what that comment means.

[TNTLAMB]

Its the weather pure and simple. Its really not a lot different out of Galveston. It doesn't take much of an "occurrence" to move a cruise from profitable to negative. Not to mention the Texas liquor laws.....................

[paul929207]

The schedule thru April 2018 is now out and Houston & Galveston do not appear.

[Working 2 Cruise]

I do believe Princess has left Texas for good...

[moki'smommy]

Having never cruised out of any port in Texas, I am curious what that comment means.

 

Galveston is significantly farther away from both Houston airports (Hobby and Bush) than Bayport is. My experience is that the longer the distance to be traveled from the airport to the cruise terminal, the more costly the transfers.

[dmdiver]

I've never had bad weather on any of my sailings out of Galveston. We have about a 5 hour drive from our house, stopping for breakfast along the way. Traffic through Houston is a bear, but the rest of the trip is an easy drive.

[iceleven]

Galveston is significantly farther away from both Houston airports (Hobby and Bush) than Bayport is. My experience is that the longer the distance to be traveled from the airport to the cruise terminal' date=' the more costly the transfers.[/quote']

 

Other cruise lines leave out of Galveston. I've never cruised out of Texas (either ports) because the airfare for us is quite a bit higher for us from SFO than it is for us to fly directly to Ft. Lauderdale and there are a lot more options there. I'd be happy if they used a port in New Orleans, though. I find the cruise ports can be (and should be) regarded as part of the experience.

[satxdiver]

Princess had a ship over the winter season in Galveston and left in 2006 or 2007. They returned in 2012 I believe to Galveston first before moving to Bayport and now they have left again. Princess most likely will be back as there is a large market in the area of pax who can drive to the port making it attractive.

[cruisingram1]

Well it is certainly easier to get to for us West Coasters then FL. But then again the weather. :(

 

We have done Galveston and FLL ports. While a flight to the Galveston port seems like a shorter trip, if you factor in the distance from the airports in TX vs arriving a few miles from the ship in FLL, it's probably a wash.

 

As an aside, Galveston disembark was a nightmare! 1000 non-US passport holders interspersed in the customs lines. Took forever!! And then a mighty thunder storm. Almost missed our 2 pm flight home.

[reney313]

I've cruised out of Houston and Galveston. It's convenient for us in the midwest. That said, I much prefer sailing out of Florida. The main reasons: 1. easy transfer/taxi to hotels and the port. (although we drove to TX). 2. No tax before leaving the embarkation port for liquor. 3. Full bar immediately vs. the limited drinks until they leave. 4. Not state duty on liquor/cigarettes under the federal limit when returning.

 

I think Texas has shot themselves in the foot with some of their laws. If the returns are marginal, if I were in charge of the cruise line, I'd pull out too since it's a pain in the rear for the onboard staff and a customer dissatisfier.

[Mommypig]

Other cruise lines leave out of Galveston. I've never cruised out of Texas (either ports) because the airfare for us is quite a bit higher for us from SFO than it is for us to fly directly to Ft. Lauderdale and there are a lot more options there. I'd be happy if they used a port in New Orleans, though. I find the cruise ports can be (and should be) regarded as part of the experience.

 

 

New Orleans is an awesome port to sail out of. Only drawback is you have yo carry on your own soda because the luggage dudes won't carry them to the ship. But with a tummy full of beignets, who cares?

[dforeigner]

Talking to staff on board Princess, I mentioned about the rumor of Princess returning to Texas for the fall of 2018. Their exact comment was, "that is the rumor."

 

There are those who say Princess does not make money when sailing out of Texas. Kind of a bold statement when Carnival and RCL have two permanent ships sailing out of Galveston every week.

 

We love Princess but have no intention to pay for airfare for a Caribbean cruise when we can sail on board Royal Caribbean here in Texas. We sail to relax, not for the islands.

 

Now, if sailing out of Alaska, Hawaii, Europe, etc, then yes, we will pay for the airfare we would gladly return to Princess.

[iluvcruzin]

Princess had a ship over the winter season in Galveston and left in 2006 or 2007. They returned in 2012 I believe to Galveston first before moving to Bayport and now they have left again. Princess most likely will be back as there is a large market in the area of pax who can drive to the port making it attractive.

 

 

Don't count on it. They left NOLA and that was a drive to port for many. Filling the ship required low fares. I cruise on the Golden out if there years ago. They weren't making the money they could elsewhere. I have never cruised out of Texas but noticed the fares are low in many cases. Maybe they are experiencing something similar and figured their ships would do better elsewhere.

[satxdiver]

Don't count on it. They left NOLA and that was a drive to port for many. Filling the ship required low fares. I cruise on the Golden out if there years ago. They weren't making the money they could elsewhere. I have never cruised out of Texas but noticed the fares are low in many cases. Maybe they are experiencing something similar and figured their ships would do better elsewhere.

 

I do believe they will be back to Galveston/Bayport sometime in the future. Last time they were gone 6 years or so and it may be that long again. Princess is expanding to Asia at the present time and their ships are all committed to better markets or promising markets. They have a new ship coming to the fleet next year and rumor has it that they are contracting for two more.

[scott4020]

It simply come down to inventory. Princess made money in Texas they can just make more from other ports. Maybe when they get more ships they will come back.

 

I don't see any line coming back back to Bayport unless the port comes up with a big bag of cash or guarantees to pay off losses from weather.

[JoMoe]

Still only on the coasts. Princess has their 2019 spring schedule in place. The only US ports of departure are southern FL or the west coast, nothing in the middle of the US. I was hoping they would go out of NOLA, Galveston, Mobile, but it looks like they are not. Hopefully next year because I would prefer Princess, but am going on an RC for now.

[Colo Cruiser]

Still only on the coasts. Princess has their 2019 spring schedule in place. The only US ports of departure are southern FL or the west coast, nothing in the middle of the US. I was hoping they would go out of NOLA, Galveston, Mobile, but it looks like they are not. Hopefully next year because I would prefer Princess, but am going on an RC for now.

 

 

They have tried NOLA and Texas a couple of times and it's not a money maker.

Princess goes with the market.

IMO they will probably not be back.

[fishywood]

Demand for Princess Cruises to the Yucatan/Central America is already more than satisfied by the number of berths in Ft Lauderdale. You can't simply add more cruises to the same general destination--even from an alternate turnaround port--as the itinerary will quickly become stale (if Cozumel hasn't already :rolleyes:) and supply will end up exceeding demand. Scan some previous year Cruise Atlases and you will see how cuts had to be made to Western Caribbean sailings from Ft Lauderdale the years there was a ship in Galveston or Houston.. Cuts that are not feasible today as Princess has managed to keep the same number of berths will fewer turnaround days simply by building bigger ships. Ships that are too big for either demand or infrastructure in New Orleans and especially Mobile. Unless you are proposing that Island or Coral (don't even think about Pacific) being redeployed to one of the Gulf Coast ports, your dreams will remain dreams. And even then.

[Roberto256]

Talking to staff on board Princess, I mentioned about the rumor of Princess returning to Texas for the fall of 2018. Their exact comment was, "that is the rumor."

 

Princess is probably holding out for another bribe from some texas agency.

 

And, the agency will hope to make the money back through taxing tourists' liquor while it transits the state.

[DrivesLikeMario]

I wouldn't be surprised it was more than 2 years before Princess returns to Houston or Galveston, if at all.