What’s really behind the end of Australia?

Emily MurphyBy 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.

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.

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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Discover the Yarra Valley town made for slow weekends

    Kellie FloydBy Kellie Floyd
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    Once a service town for gold miners, Healesville has evolved into a destination brimming with character.

    If you trace your finger to the heart of the Yarra Valley on a map, you’ll land on Healesville – a charming little town framed by towering gums and rolling hills. Its main street is lined with cosy cafes, a bookshop, silversmiths, boutiques and a providore stacked with artisan breads and cured meats. In other words, all the essentials for a leisurely weekend. Just beyond the shops, parklands invite picnics, bush trails suggest a wander, along with an old tourist railway, distilleries and award-winning vineyards. Originally a service centre for the goldfields, the railway soon brought visitors seeking fresh mountain air. Today, it’s the kind of place that rewards a slow stroll.

    Staying in Healesville

    the lounge in one of the cosy villas at Healesvillas
    Inside one of the cosy villas.

    If sweeping mountain views are part of your accommodation prerequisite, Healesvillas are two architecturally designed villas sleeping six guests, complete with landscaped al fresco areas and a fire pit. Wander into town to visit Cheesemonger Sophie to help craft the perfect platter, and Barrique Wine Store for a local red, before returning to soak up the views.

    Dining out in Healesville

    small plates at No. 7 Healesville
    No.7 offers small plates and tasting menus centred on seasonal produce. (Image: Ben Frazer)

    For breakfast, head to My Little Kitchen Cafe , a cheerful spot on the main street known for its strong coffee and warm hospitality. Herd is a low-lit spot with serious style, serving up modern comfort food, or to sit beside wine barrels and underneath chandeliers head to No. 7 Healesville , a wine bar and restaurant in a converted warehouse.

    Drinking in Healesville

    a cocktail at Four Pillars Gin Distillery
    Enjoy a cocktail at renowned Four Pillars Gin Distillery. (Image: LVDI)

    Take a tour or sip your way through a tasting paddle at one of Australia’s most famous gin distilleries, Four Pillars Gin . If visiting a boutique winery is on the list, Boat O’Craigo wines has sweeping views over the vineyards to the hills beyond. The newest addition to the local drinking scene, Zoncello Yarra Valley serves a must-try Limoncello Spritz.

    the Boat O’Craigo winery
    Boutique winery Boat O’Craigo. (Image: Rob Blackburn)

    Healesville highlights

    If you’re after a one-of-a-kind piece of jewellery, Silvermist Studio designs beautifully unique pieces. Lifestyle store Morris et al is filled with women’s fashion and homewares, and because everyone deserves a good book, Verso Books is a cosy independent bookshop with carefully chosen titles.

    Head to Healesville Sanctuary to get up close to some of Australia’s wildlife. If the weather is on your side, pack a picnic and head to Maroondah Reservoir Park to climb the steep dam wall, where kids and adults alike can’t resist testing out the booming echo. And if you feel like stepping back in time, board a vintage train at the Yarra Valley Railway .

    the Puffing Billy Railway
    Step back in time at the Puffing Billy Railway. (Image: Visit Victoria)