P&O is targeting mainland Europe to expand its cruising product.
The announcement came as chairman Lord Sterling revealed a 33% increase in pre-tax profits to £183m in the first six months of 1999.
Lord Sterling said: “We are looking at opportunities for moving into countries where cruising is undeveloped but which have growth prospects. mainland Europe has all the hallmarks of a major new market. Our cruise division is becoming a global operation.”
Operating profits for the cruise division were up 20% to £108.5m while ferries were up 45% at £19m.
P&OCruises already has nine ships on order for delivery between 2000 and 2004.
A spokesman for the company said that in the US, cruising accounted for 5% of the holiday market and in the UK, that figure was 2%-3%, yet Europe saw less than 1% of the market choosing to opt for a cruising holiday.