The P&O Cruises Australia brand will disappear next year with operations absorbed into Carnival Cruise Line.
Parent company Carnival Corporation pointed out that the decision does not impact P&O Cruises in the UK, which is a separate brand.
The closure of P&O Cruises Australia from March 2025, will see the Pacific Encounter and Pacific Adventure ships rebranded and operated by Carnival Cruise Line with third vessel Pacific Explorer (pictured) exiting the fleet in February.
Current itineraries will operate “business as usual”, and passengers will be notified in the coming days of any changes to future bookings as a result of the announcement, the corporation said.
Carnival Cruise Line – which has served the South Pacific since 2013 – will have four ships in the market when the transaction is complete, including Sydney-based Carnival Splendor and Carnival Luminosa sailing seasonally from Brisbane, in addition to Encounter and Adventure.
The realignment will strengthen the company’s performance in the South Pacific through numerous operational efficiencies in addition to “further optimising” Carnival Corporation’s global brand portfolio.
Carnival Corporation chief executive Josh Weinstein said: “P&O Cruises Australia is a storied brand with an amazing team, and we are extremely proud of everything we have accomplished together in Australia and the broader region.
“However, 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.
“Carnival Corporation remains committed to Australia and we will continue to be the largest cruise operator in the region with 19 ships calling on 78 destinations and representing almost 60% of the market.”
The change is the latest in a series of strategic moves designed to increase capacity for Carnival Cruise Line, the highest-returning brand in Carnival Corporation’s global portfolio.
Weinstein added: “Despite increasing Carnival Cruise Line’s capacity by almost 25% since 2019 including transferring three ships from Costa Cruises, guest demand remains incredibly strong so we’re leveraging our scale in an even more meaningful way by absorbing an entire brand into the world’s most popular cruise line.
“In 2019, Carnival Cruise Line was 29% of our total capacity, and when we complete this move early next year, Carnival Cruise Line – our highest-returning brand – will make up approximately 35% of our total global capacity.
“While our company’s overall growth between 2019–2028 is projected to be less than 2%, the majority will be for Carnival Cruise Line, which will grow by approximately 50% over that time period.
“Over the coming months, we will find ways to celebrate and honour P&O Cruises Australia – a valued part of our legacy and an important contributor to the tourism industry in the South Pacific.
“We value the connection our P&O Cruises Australia guests, employees, travel advisor partners, public officials and destinations have with our company and are committed to building on this association moving forward as Carnival.”
Carnival Cruise Line president Christine Duffy said: “We look forward to building on the history and heritage of P&O Cruises Australia by bringing some of our innovations to more cruise guests in the region.
“While we plan to make some technology upgrades and other small changes to the two P&O Cruises Australia ships, they will continue to be geared to the unique Australian market with a familiar feel and much of the same experiences for P&O Cruises Australia guests.
“The most notable change will be the availability of our popular HubApp, enabling guests to make online dining and excursion reservations, request food and beverage delivery, and chat with other guests, among other features.
“P&O Cruises Australia guests will also be invited to participate in Carnival’s loyalty program and promotional offerings specific to Carnival ships sailing in the region.”