Farewell to P&O Australia: The End of an Era
P&O Australia has played a pivotal role in my love for cruising. My journey began with a family holiday on P&O’s Fair Princess in 1999, which ignited my passion for sea travel and smaller cruise ships. My subsequent voyages on the Pacific Sky and Pacific Sun in 2004 and 2006 only deepened this passion, and I know many of you share similar experiences.
The emotional bond with P&O was reinforced during the cruise industry shutdown. When the Pacific Explorer returned to Sydney in April after a two-year hiatus, the sight was overwhelming, despite not being onboard.
Over the past decade, cruising with P&O has changed dramatically. Known for affordable holidays for Australian families and friends, the cruise line shifted to a low-cost airline model: attractive base fares with numerous add-ons. The arrival of larger ships like the Pacific Dawn and Jewel marked the beginning of this transition, which became more pronounced with the Pacific Explorer, Encounter, and Adventure, offering both included and surcharge amenities.
This shift pointed to a larger issue: the high cost of operating a cruise line in Australia. Carnival Corporation CEO Josh Weinstein cited the region's small market size, high operating costs, regulatory challenges, and currency issues as reasons why P&O couldn't sustain itself. Allegedly, the cruise line's food budget was $9 per passenger per day, explaining the prevalence of surcharge dining options.
Carnival Corporation's strategy to address these challenges involved integrating P&O Australia with Carnival Cruise Line's more efficient operations. This transition began in 2023, aiming to enhance profitability and shareholder value.
The new direction became evident with the rebranding efforts and the registration of the business name, "Carnival Cruise Line" in Australia in March 2024. P&O Australia will officially dissolve in March 2025. The Pacific Explorer will leave the fleet, and the Pacific Encounter and Pacific Adventure will be rebranded as Carnival ships, undergoing upgrades before returning to service in late March 2025.
With these changes, we anticipate more included dining options and onboard experiences akin to Carnival's global offerings. The transition may retain some Australian elements, but the overall experience will align with Carnival's brand. The Carnival HubApp will be available for onboard services, and passengers will join the VIFP loyalty program, though I’ve been informed that past P&O cruises won’t count towards this status.
Carnival’s local fleet will consist of three year-round ships: Splendor and Adventure from Sydney, and Encounter from Brisbane. Unfortunately, this means fewer options for other Australian states and New Zealand, as the Pacific Explorer's seasonal cruises will end. Luminosa will sail seasonally from Brisbane.
Cruises on the ‘new’ Carnival ships are available for booking via the P&O website or your travel agent.
Carnival Australia representatives have confirmed that the Byron Beach Club concept will remain available onboard Carnival Encounter and Carnival Adventure.
The loss of P&O Australia reduces brand competition in the local cruise market, potentially affecting prices in the long term. P&O's closure also impacts the local team, and crew members, who I hope will be accommodated within the newly combined Carnival Cruise Line.
P&O Australia’s departure marks a significant shift in our cruising landscape. While it's a farewell to a beloved brand, the transition to Carnival Cruise Line opens new chapters for cruising enthusiasts. Thank you, P&O, for the memories and the voyages.