P&O Cruises Australia Closure: What it Means for the Cruiser (2024)

Carnival Corporation’s decision this week to shut down P&O Cruises Australia after 92 years of operation will change the face of Australian cruising.

The move that will see P&O’s three-ship fleet reduced to two with the remaining ships absorbed into Carnival Cruise Line (CCL) in March 2025, shocked the industry and P&O passengers.

The closure of P&O Cruises means the loss of Pacific Explorer, with 2,000 berths, and rebranding Pacific Adventure and Pacific Encounter as Carnival Adventure and Carnival Encounter.

The decision marks the end of seasonal departures from Fremantle, Adelaide, Melbourne and Auckland, all of which operated on Pacific Explorer, which will ‘exit’ the company in March, presumably to be sold to another cruise line.

The 27-year-old ship, formerly Dawn Princess, will depart from Fremantle on February 7 2025 on its final itinerary, an 11-night cruise to Singapore.

All future Pacific Explorer cruises from March 2025 to early 2026 have been cancelled: 16 departing from Fremantle; 10 from Adelaide; 26 from Auckland; 22 from Brisbane and 17 from Melbourne, with passengers being offered full refunds or a cruise credit with extra (unspecific) onboard spending money.

There is no plan to reinstate these departure ports as CCL sails from Sydney and Brisbane only, a Carnival Australia spokesperson confirmed today.

What Will the New Ships Look Like?

Apart from a new paint job, signage and technology upgrades to include a passenger messaging and booking tool, HubApp, no hardware changes are envisaged. Carnival Adventure and Carnival Encounter will retain their current restaurants, public rooms and attractions, when the integration takes place.

The technology enhancement will see the two ships taken out of service in mid-March next year resulting in the cancellation of four Adventure itineraries ex-Sydney and three Encounter cruises, ex-Brisbane. On their return to service they’ll be operated by Carnival Cruise Line. Passengers on cancelled cruises have been notified by P&O and those seeking Future Cruise Credits have until the end of June 2024 to decide on this course; others will be automatically refunded in full.

“A Rush of Bookings” Following Announcement

The news of the closure of an iconic Australian brand, coming just over two years after Pacific Explorer made her triumphant entry into Sydney Harbour to restart cruising Down Under after a two-year pandemic hiatus, saturated the airwaves on Wednesday, while passengers took to P&O Facebook groups and Cruise Critic Message Boards to question the ramifications and lament the line’s demise. Many were annoyed that the message was delivered by a Miami-based ‘operative’, while others complained that only passengers booked on cancelled cruises had been notified of the company’s demise.

The news of the line’s closure also prompted a rush on bookings, according to a Carnival spokesperson today, however, no details were provided.

The official reason, delivered in a release from Miami-based Carnival Corp CEO and president Josh Weinstein, has been analysed and reiterated. Weinstein couched the message in positive terms, calling the decision “the latest in a series of strategic moves designed to increase guest capacity for Carnival Cruise Line” and noted that three ships from Italian line, Costa Cruises had also been moved to CCL in recent years. However, while Costa remains as a stand-alone brand with nine ships in its fleet, P&O Cruises Australia faces a ‘sunset’, the economic euphemism marking the end of a company’s life.

High Operating Costs in the South Pacific

The decision to close P&O ultimately came down to the South Pacific’s (the Australia and New Zealand markets) smaller population and its higher operating and regulatory costs, while the fact that CCL has operated here since 2013 (initially with the Carnival Spirit ex-Sydney) meant systems, staff and two ships (Carnival Splendor and Carnival Luminosa) were already in place.

It is a consolidation and streamlining, with the largest of Carnival Corp’s nine brands winning out. The consolation means job losses at the Chatswood , Sydney headquarters, although actual numbers were not revealed, while crew from the Explorer will be moved to the other ships operating in Australia or within the other Carnival brands.

Carnival Cruise Line’s fleet currently numbers 27 ships, soon to be 29 when P&O folds.

In a message delivered the day after Weinstein’s announcement, US-based Carnival Cruise Line present Christine Duffy said while it was a difficult decision to make, it was not sustainable to operate a standalone brand with just three ships.

Despite passenger fears that prices may rise following the closure, Carnival said the P&O fares would remain the same.

Apart from fare rises, other comments made by loyal P&O passenger centred around the demise of P&O heritage and the company’s distinct ‘Australian style’, the ‘American’ style of CCL ships and the garish décor of ships designed by legendary ship architect Joe Farkus, the loss of a mid-size ship Pacific Explorer and concern that Australia will have no choice beyond big ships, in the future. Many were concerned that they’d lose their loyalty program status, which was aligned with Princess Cruises. The Carnival spokesperson said P&O didn’t have a loyalty program and all passengers will be enrolled in CCL’s VIFP (very important fun person) program going forward.

“Outpourings of Nostalgia” Following P&O Cruises Australia Closure

Former Carnival Australia corporate communications manager David Jones, who worked for the company for 13 years from 2010 said:
“It has left a gaping hole in the Australian cruise market. It’s only when something is gone — or going — that people can stop to reflect on why they loved a brand so much. To the wider community, P&O was bigger than its cruising years. It’s etched in Australian history for its contribution to nation building going as far back as colonial times. Prior to air travel it was our sea link to the world."

But as said as it is and putting emotion to one side, commercial decisions are subject to the harsh financial realities influenced by high operating costs and expensive fees and charges in this market. Having said that the emotional connection to the P&O brand can’t be ignored. The big question is whether hollowing out the heart of the industry with the loss of the foundation brand will put the brakes on the familiar growth trajectory of Australian cruising.

“The implications are already being assessed regionally. Adelaide, as just one example, is asking whether its cruise seasons will be scaled back.

He added: “P&O Cruises Australia by definition was a unique brand with a distinctive Aussie touch. Carnival Cruise Line will have to work hard to replace P&O in the hearts and minds of the home-grown cruise line’s loyal fan base.”