P&O Cruises Australia Drops Anchor After 90 Years

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.

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.

From cabins to canvas, craft distillers to destination dining, Heathcote locals reveal their eco-savvy passions in ways that resonate with those seeking to travel lightly.

Heathcote , on traditional Taungurung Country in Central Victoria, is synonymous with its garnet-hued shiraz, but wine isn’t the only string to its bow. The town itself is sprinkled with heritage buildings from the gold rush era, and beyond that a growing collection of sustainable gastronomy and eco-friendly escapes. Nearby Bendigo, one of only 65 cities in the world recognised as a UNESCO Creative City and Region of Gastronomy, plates up an astonishing calibre of produce, wine and food for its size. Increasingly the entire region is taking up the challenge, though Heathcote in particular shines with its focus on sustainability.

Pink Cliffs GeologicalReserve — The dramatic landscape of Heathcote’s Pink Cliffs Geological Reserve. (Image: Visit Victoria/Emily Goodfrey)

The eco-stays bringing sustainability to Heathcote

Yellow BoxWood’s safari-style tents — Yellow Box Wood’s safari-style tents are nestled on 40 hectares of bushland. (Image: Emily Goodfrey)

Andee and Lisa Davidson spent years working in southern Africa before settling in Heathcote. “We had a vision of how this could be,” explains Andee. “We wanted a retreat, but one that was off-grid and environmentally sustainable.” Now, at Yellow Box Wood , two luxury safari-style tents are at the heart of 40 hectares of rolling hills and native bush, with kangaroos, wallabies, echidnas, goanna and birdlife aplenty. It’s all solar-powered, wood for the fire is mainly fallen timber, and water is collected on the carport roof. No lack of creature comforts though – en suite with rain shower, espresso coffee maker, comfy seating, wood-burning fire all set to go. There’s also a solar-heated, mineral salt pool in a bush setting, walking tracks, and even a mini bush golf course. On my visit, I put the vision to the test. Cocooned in the plush four-poster bed I can glimpse the stars, while the heater casts a golden glow on the canvas. In the morning, I wake to a blush-pink sunrise, kangaroos feeding and a soundtrack of magpies.

If a tent is not your style, Stephen and Cally Trompp’s carbon-neutral Mt Ida Eco Cabin might entice with its generous deck and farmland views. Inside the cabin, corrugated iron walls as rusty as a shearing shed, gleaming (recycled) floorboards, timber truss ceiling (crafted by Stephen), wood-fired heater and an old-school turntable with a pile of vinyls to spin. It’s fun, and a little boho. “Everything is recycled. The cabin takes maximum advantage of the sun in winter. It’s all solar-powered. Don’t panic, though,” says Stephen, “you can still charge your phone and get 4G reception!” Settle into an Adirondack chair on the deck or pedal off on a mountain bike to suss out the wineries.

A taste of Spain in Central Victoria

Another person with a vision is Evan Pritchard at his Three Dams Estate where the wines reflect his deep love of Spain and of Spanish-style grapes, such as tempranillo. Afternoons in the ‘wine shed’ or cantina are matched with music (flamenco is a favourite), Spanish bites from tapas to paella (with Evan on the pans!) and views to Mount Alexander. Sustainability is also a passion. “You don’t need to buy anything. We decided to be off-grid from the start, but it is a lifestyle change,” he says. “You need to think about it and be careful.” Everything here is recycled, reassembled, refurbished. Evan has an electric car (with solar-powered charger), solar-power for the winery, and even a jaunty little electric tractor/forklift. “I love the idea of all the things you can do using the sun.” Sipping a crisp rosado (a Spanish rosé) with Evan in the sunshine, I couldn’t agree more.

The vineyard redefining sustainable winemaking

Silver Spoon winery — The Silverspoon Estate winery is completely off-grid. (Image: Graham Hosking)

On the other side of Heathcote, Silver Spoon Estate demonstrates sustainability on a more extensive scale. Tracie and Peter Young’s winery, cellar door, award-winning restaurant and their own house are all solar-powered and off the grid. Sustainability is intrinsic to everything they do. The property sprawls across 100 hectares, with 20 hectares under vine – shiraz, viognier, grenache, tempranillo. As the climate has changed, so too has the approach. These are dry-grown vineyards. “We prune for drought. That means lower yields but more intense flavours,” says Peter. The fine-dining restaurant offers sweeping views, a wood-burning fire and a deck for languid lunches. Head chef Ben Hong sources regional, sustainable ingredients and weaves estate wines into the menu – think crispy wild mushroom arancini, viognier-infused chicken breast.

Silver Spoon’s award-winning restaurant.

Heathcote’s other hidden gems

Not all local wineries have a cellar door, but I find local treasures at the Heathcote Wine Hub , a petite 1855 timber church in the main street, lovingly returned to life by Karen Robertson and Carey Moncrieff. “Carey is a scrounger,” says Karen. “He doesn’t throw a single thing away.” He does, however, craft things into something quite special. Heritage floors, light-filtering lancet windows and shelves of regional wines create the perfect ambience for wine tasting. Or order a glass and linger over a cheese platter.

Heathcote is not all wine, of course. Nathan Wheat and partner Vanessa Curtis run Envy Distilling with a committed sustainable ethic – and a serious love of gin. Their small-batch distillery produces grape-based gin, and soon brandy. Distilled water is reused in an ingenious cooling system. All waste is treated on site. They buy excess wine from winemakers to distil and buy recycled barrels. “Distilling with the sun,” as Nathan says. Each Envy gin has its own story. Spicy, award-winning The Dry, is designed to capture the region’s dry, rugged nature. Pull up a stool at the bar (reclaimed timbers and tiles, of course), order a Gin Flight, or kick back with a cocktail and let Nathan share his eco journey.

Envy gins — Sample gins at small-batch distillery Envy.

A traveller’s checklist

Getting there

It’s less than two hours’ drive from Melbourne. The scenic route we take goes past Sunbury, then along a splendid country road through Romsey and the magic, boulder-strewn landscape of Lancefield. Watch for kangaroos on the road!

Staying there

Go off-grid in style at Yellow Box Wood for glamping or try Mt Ida Eco Cabin for a couple’s weekend hideaway.

Eating there

French dishes at Chauncy — Award-winning French restaurant Chauncy.

At award-winning Chauncy , French chef Louis Naepels and sommelier wife Tess Murray have created a tiny, elegant pocket of rural France. Meticulously restored 1850s sandstone building, sun-drenched dining room, impeccable service, a menu suffused with local flavours and thoughtful wine pairings.

Fodder is both cafe and social hub. Chef Mo Pun and sister Lalita serve classic Aussie breakfast-to-lunch fare, though their Nepalese heritage sneaks through.

Playing there

Sanguine Estate ’s cellar door and terrace overlook bucolic vineyards. Its award-winning, dry-grown wines include the distinctive D’Orsa Blanc dessert wine, reflecting the family’s Swiss-Italian heritage. Order a charcuterie board and stay a while. Keep it carbon neutral by cycling some (or all) of the 50-kilometre O’Keefe Rail Trail to Bendigo.

At Bridgeward Grove , learn about the property’s Old Mission Grove heritage olive trees, do a sommelier olive oil tasting, and stock up on sustainably grown olives and oil. Explore the unique landscape, wildflowers and wildlife of pink cliffs geological reserve.

What’s really behind the end of Australia?