What’s really behind the end of Australia?

Emily Murphy Emily Murphy
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P&O Cruises Australia drops anchor after 90 years.

To the shock of many dedicated cruisers, the P&O Cruises Australia brand will set sail for the last time in March 2025.

Aerial of P&O Cruises Australia Pacific Explorer ship
P&O Cruises Australia drops anchor after 90 years.

P&O Cruises’ shock exit from Australia

Australia’s most historic cruising brand reached the end of the line when parent company Carnival Corporation announced on Tuesday P&O Cruises Australia will be folded into Carnival Cruise Line’s operations from March 2025.

Two of P&O Cruises Australia’s existing cruise ships (Pacific Encounter and Pacific Adventure) will be transferred into the Carnival fleet, while Pacific Explorer will exit the fleet.

P&O Cruises Australia Pacific Adventure ship
Pacific Adventure will be transferred into the Carnival fleet.

How Carnival Corporation explains the move

Carnival Corporation chief executive officer Josh Weinstein said that while the company is proud of what P&O Cruises Australia has achieved, the costs have become too high to be able to operate the brand in Australia.

“Given the strategic reality of the South Pacific’s small population and significantly higher operating and regulatory costs, we’re adjusting our approach to give us the efficiencies we need to continue delivering an incredible cruise experience year-round to our guests in the region," Weinstein said.

While it’s not clear how many jobs will be lost, the ABC reported that between 10 and 20 jobs will be lost in Australia.

P&O Cruises Australia Pacific Encounter ship
Costs have become too high to be able to operate the brand in Australia.

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But what is really behind the demise of Australia’s home-grown cruising brand?

To get some insights we asked Australian Traveller Media’s co-founder and cruise enthusiast Quentin Long what he thinks is going on.

“There are three driving factors I can see," he says.

“The first is pure economic efficiency through cost rationalisation. Running a small regional cruise line without the centralised systems of a huge corporation is a lot of cost on a small revenue base – in other words incredibly difficult to make profitable."

So, cost consolidation would instantly make it a lot easier for P&O to be more profitable. “Well maybe just profitable as the rumour is they have not been profitable for 10 years," he adds.

The second motive follows closely on the first according to Long.

“The Carnival brand has great penetration into the valuable US and global cruise market so now these rebranded ships address a larger source market. To meet that market, you can now easily move the ships to the destinations and develop itineraries to match this demand."

P&O Cruises Australia Pacific Explorer ship
Pacific Explorer will exit the fleet.

So, does that mean we may have fewer or even no cruise ships permanently based in Australia?

“Yes, that is certainly a possibility. It will be purely demand driven whether three, two, one or no ships are here in Australia year-round," Long says.

According to Long, the impact of that outcome will be felt far deeper than just the cruise passengers.

“Sure, a lot of Australians who could really only afford a P&O cruise will be left high and dry which is devastating. But what about the businesses that are serving the ships? They will lose 50 per cent of their business if they are pulled out of the market for the quiet winter season," he says.

P&O Cruises Australia Pacific Explorer ship
The impact of this decision will be felt across the board.

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And dare we ask about the third driving factor?

“Oh, that’s just about modernising and evolving the product to meet the new cruise passengers’ expectations," Long says.

Carnival Cruise Line will implement some technology upgrades and other small changes to the P&O fleet, most notably by introducing Carnival’s HubApp which allows guests to make reservations, get food and drinks delivered and chat with other guests.

“After the initial swift tech upgrade, I expect they will add more contemporary experiences that are in line with the Carnival Cruises brand – more glitz and brash US-style fun. So, more water slides etc," he continues.

Oasis on P&O Cruise ship
Carnival Cruise Line will upgrade the P&O fleet.

What P&O passengers need to know

Passengers who have booked a P&O Cruise in 2024 won’t be affected.

Guests booked on Pacific Encounter and Pacific Adventure after March 2025 will not be affected in most cases as the itineraries and departures will be maintained. Just a bit more tech when you get on the ships named Carnival Adventure and Carnival Encounter.

Passengers booked on Pacific Adventure will have options for a full refund, future cruise credit and even in some cases onboard credits.

Magrodrome on P&O Cruise ship
At this stage, it’s unclear how many jobs will be lost.
Emily Murphy
Emily Murphy is Australian Traveller's Email & Social Editor, and in her time at the company she has been instrumental in shaping its social media and email presence, and crafting compelling narratives that inspire others to explore Australia's vast landscapes. Her previous role was a journalist at Prime Creative Media and before that she was freelancing in publishing, content creation and digital marketing. When she's not creating scroll-stopping travel content, Em is a devoted 'bun mum' and enjoys spending her spare time by the sea, reading, binge-watching a good TV show and exploring Sydney's vibrant dining scene. Next on her Aussie travel wish list? Tasmania and The Kimberley.
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Your guide to what’s new and exciting this summer on the Central Coast

    Kassia Byrnes Kassia Byrnes
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    From serene natural beauty to vibrant nightlife, with plenty of arts and culture in between, the NSW Central Coast has been enjoying a serious glow up.

    Just one hour from Sydney, the Central Coast has long been the perfect seaside getaway. And with its ECO Destination certification with a focus on sustainability, it’s a trip travellers can feel good about, too. Recently, new and exciting openings have turned the Central Coast into a place where incredible natural beauty is still on the table, but so is a vibrant and sophisticated arts, dining and nightlife scene.

    Find out what’s new to discover on the Central Coast.

    1. Gosford’s glow up

    room at voco gosford
    Book into voco and experience the best of Gosford.

    Long-time Central Coast lovers will hardly recognise Gosford these days. While always boasting gorgeous water views, a range of revamps and new openings have turned it into a busy hub of arts and culture, with an increasingly diverse and vibrant nightlife.

    Landmark lifestyle hotel voco Gosford is the perfect home base for a Central Coast getaway. At this IHG hotel overlooking sparkling Brisbane Water, guests can spend sunny days soaking in the rooftop pool (or just sipping a cocktail beside it). When it comes to meals, you can enjoy multiple venues serving up everything from modern Australian fare to fine-dining Japanese.

    Venture out to lay eyes on the Central Coast’s first permanent Moving Image Gallery (MIG) . Opened this year inside the Gosford Regional Gallery , the immersive space is a showcase of screen-based and digital art. While at the gallery, wander around the Edogawa Commemorative Garden, a traditional Japanese strolling garden complete with teahouse, koi pond and an ornamental bridge.

    Meanwhile, the revamped Gosford Regional Library has even more than books to discover. Now, it’s one of the best in the southern hemisphere – find exhibitions, historical archives and community initiatives for all ages at this perfect family-friendly escape.

    2. Newcomers to the dining scene

    table full of food at Amarilla restaurant terrigal
    Treat yourself to sundowners and snacks at Amarilla.

    The Central Coast has long been the perfect destination for gourmands, with everything from casual eats to fine dining elevating the local offerings. And three new destinations have been added to the map.

    Amarilla at The Haven in Terrigal is the perfect seaside venue for sundowners, with blissed-out beats providing the soundtrack. Book in for golden hour and choose bites from a Spanish tapas menu made for sharing. Do as the locals do and wash it all down with sangria – the Sunday Sangria Sessions have become a local institution.

    Also in Terrigal, Little Miss has brought a premium Mediterranean menu to the waterfront. Try the wagyu tartare with Greek caviar or butter-poached lobster and tomato bisque, paired with inventive cocktails and a handpicked selection of Lebanese wines.

    Over in Ettalong, Bar Toto is perfect for pre- or post-dinner drinks. This award-winning cocktail bar is known for its creative concoctions, along with craft beer, wine and antipasti platters to snack on. The interior sets the mood, with dim lighting and wooden furnishings.

    3. New Central Coast experiences

    winemaker at Firescreek Botanical Winery
    Book an experience at Firescreek Botanical Winery.

    It’s entirely possible (and recommended) to spend a Central Coast getaway relaxing on one of its many peaceful and pristine beaches. But for those who crave more, there’s a long list of options to keep you busy.

    Pop into the iconic Australian Reptile Park to see the new Weigel Venom Centre, a state-of-the-art facility that’s home to over 200 of the country’s most venomous snakes.

    Get out on the water with Sail Central Coast , which offers 20 years of expertise in yacht charters. Book the Sunset Sail & Dine yacht charter for a private afternoon cruising the waterways of Bouddi National Park and Brisbane Water, stopping at Anchor on Hardys for a two-course meal with a cocktail.

    For something completely different, Firescreek Botanical Winery is now offering an Aboriginal Storytelling and Wine Tasting Experience. Learn about local cultures, stories and traditions from an Aboriginal Elder, then enjoy a botanical-inspired wine tasting led by a local winemaking expert.

    4. Central Coast accommodation

    view from a cottage at Noonaweena
    Sleep in the hinterland at Noonaweena.

    There’s simply too much to experience on the Central Coast to only stay for one day. Turn your trip into a relaxing getaway by the beach.

    Allawah , a retreat on the banks of the Hawkesbury River, is accessible only by boat. This secluded two-bedroom cottage is the perfect place to unwind, allowing you to spend lazy days fishing, kayaking, paddling or unwinding with a book on your own private jetty.

    In the Kulnura hinterland, Noonaweena features a range of accommodation styles, from a luxe glamping bell tent to cottages and a treetop suite. It’s a leader in green travel, with 10 years of certification from Eco Tourism Australia. Relax in the onsite wellness centre or get active on various courts and in the gym facilities.

    To stay by the ocean at Toowoon Bay, book into Kim’s Beachside Resort . This adults-only property offers a luxury escape nestled within a sub-tropical rainforest. Along with 36 private timber bungalows, indulge in massages or reiki treatments at the dedicated spa, or stop by the cocktail bar and à la carte restaurant.

    5. Shopping on the Central Coast

    Umina’s Centred Ceramics central coast
    Try your hand at Umina’s Centred Ceramics’ pottery courses.

    For those after unique trinkets, handmade treasures and beautiful homewares, the Central Coast is a haven.

    Markets on the Central Coast have a special flavour. Wander the Umina Beach Markets at twilight, where you’ll find small businesses from the local areas, and the Norah Head Ocean View Markets , where you can soak up good food, live music and artisan finds by the beach after sunset. ‘Tis the season for the Christmas twilight edition of the Avoca Beachside Markets, celebrating the season with pop-up bars, tasty treats and plenty of unique gift options from local artists and producers.

    Galleria Ettalong has also added to the Central Coast’s recent makers and creators renaissance, wrapping cinemas, a dining precinct and over 40 boutique shops into one area.

    Sign up for a pottery course at Umina’s Centred Ceramics , or peruse the shop for a range of one-of-a-kind pottery made on the premises for a special souvenir.

    For more eclectic arts and homewares, pop into Blue Bird Collective Co . This marketplace supports over 35 small, local and handmade businesses, artists and creatives. Take the time to check out fashion, jewellery and homewares that won’t be found anywhere else.

    Start planning your coastal getaway at lovecentralcoast.com .