What’s really behind the end of Australia?

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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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8 Thredbo hiking experiences you can only have in summer

Thredbo in summer is a nature lover’s dream of show-stopping alpine beauty, cool mountain air and magical moonlit adventure.

For many of us, Thredbo calls to mind shimmering slopes and snow-dusted gums, but come summer, this Alpine resort transforms into a playground of an entirely different kind. A cool mountain retreat despite the season, Thredbo summer hikes are astonishingly beautiful, criss-crossing over dramatic peaks, pristine glacial lakes and abundant flora and fauna.

From approachable tracks for novice walkers to more challenging hikes across the Main Range and even journeys under moonlight, Thredbo puts on an unforgettable show of natural splendour all summer. Lace up your walking boots and take the chairlift from Thredbo village to embark on a self-guided exploration or a tour of the Snowy Mountains’ most compelling landscapes.

These eight unforgettable hiking experiences are only available in summer and offer an alpine adventure like you’ve never experienced before.

1. Full Moon Hike to Mt Kosciuszko

Full Moon Hike to Mt Kosciuszko
Stand atop Mt Kosciuszko at full moon.

There’s something almost mystical about hiking by the light of a full moon. This guided experience begins with a 15-minute chairlift ride, where you’ll admire the Thredbo Valley below, bathed in the fading sun.

Once at the top, you’ll pass rivers, alpine lakes and spot nocturnal wildlife on your way to the Kosciuszko Lookout and Lake Cootapatamba. By the time you reach the summit, sunset is well underway as you watch day give way to night and the alpine landscape magically illuminated by the lunar glow. Enjoy a hot chocolate here before following the path back to Eagles Nest, brightened by the night sky.

This 13-kilometre hike will take place on 3 January, 2 February, and 2 April in 2026.

2. Super Full Moon Hike

Super Full Moon Hike in thredbo
Take in the might of a super full moon.

The only thing that could level up the celestial beauty of a full moon hike would be a super full moon hike . Following the same route, you’ll meet the moon when it is largest and closest to Earth by ascending to the summit of Mount Kosciuszko at an elevation of 2228 metres. From such a height, it almost feels as though you could reach out and touch its glowing surface.

Given the rarity and splendour of the super full moon, limited spots fill up fast for this awe-inspiring hike, so be sure to book the 5 December in advance.

3. Lunar Eclipse Hike

Thredbo Lunar Eclipse Hike
See dazzling celestial displays.

What could be more extraordinary than witnessing a lunar eclipse from Australia’s highest peak? Whether you’re a keen astronomer or simply revel in nature’s beauty, this guided 13-kilometre hike will place you on top of Mount Kosciuszko just as Earth passes between the sun and moon, throwing shade over the lunar surface before transforming it with a deep-red hue.

It’s an epic place to witness one of our galaxy’s most spectacular and rare light shows. Apart from the dazzling celestial display, you’ll also enjoy walking through the moon-bathed landscape, an evening chairlift ride, and a hot chocolate at the summit.

Book now for 3 March.

4. New Moon Hike

New Moon Hike Mt Kosciuszko
Catch the changing skies of a new moon.

A stargazer’s delight, the darkness of a new moon gives the Milky Way full permission to dazzle with its shimmering display. Both astronomers and photographers will relish this opportunity to observe and capture the starry skyscape from the lofty height of Australia’s highest peak, Mount Kosciuszko. Departing Thredbo Village at dusk and leaving its twinkling lights far below, you’ll arrive at the summit in time to see the sun slip away and the stars appear.

Catch this hike during the new moon lunar phase on 20 December, 19 January, 17 February, 19 March or 17 April.

5. Thredbo River Track

Thredbo River Track
Take yourself along the Thredbo River Track.

Embark on a gentle entry into the Snowy Mountain scenery with an amble along the Thredbo River. This self-guided hike hugs the river and wanders along the valley floor, revealing snow gum forests, swimming holes and little waterfalls that make for revitalising cold plunges in the summer heat.

6. Merritts Nature Track

Merritts Nature Track thredbo summer hikes
Stop at swimming holes along the way.

On warm summer days, venturing into the cooler air of Thredbo’s alpine tracks offers relief from the heat. Particularly if you set course for the four-kilometre Merritts Nature Track , where there are opportunities to take a refreshing dip in swimming holes along the way.

The two-to-three-hour self-guided hike meanders through towering ancient trees (dubbed the ‘Pixie Forest’ by locals), takes in stunning mountain vistas and is soundtracked by the melody of birdsong. Stop for a picnic and discover a hidden natural infinity pool, the location of which is given away by the roar of a cascading waterfall.

7. Mt Kosciuszko Summit Tour

Follow a guide along Mt Kosciuszko's summit.
Follow a guide along Mt Kosciuszko’s summit.

While you can easily steer yourself to Australia’s most iconic peak without a guide, following an expert guide to the summit of Mount Kosciuszko will colour your experience with a deeper knowledge of the landscape and its wild inhabitants. The 13-kilometre return trail puts the alpine scenery on display with 360-degree views from the highest spot in the country.

The walk begins at the top of the Kosciuszko Chairlift and takes around four to six hours to complete, but is gentle enough to be embarked upon by all ages.

8. Snowies Alpine Walk Experience

Snowies Alpine Walk Experience
Join a two- or three-day experience along Snowies Alpine Walk.

If you’re looking to truly untether from daily life and embark on a real immersion in Thredbo’s stunning alpine scenery, pack your hiking boots for the newest multi-day walk in the mountains. The Snowies Alpine Walk can be tackled over two or three days and includes nightly accommodation in the iconic Thredbo Alpine Hotel, daily buffet breakfast, packed lunch and dinner vouchers, plus daily transfers to and from trail heads in a brand-new Defender.

The two-day experience covers 24 kilometres, while the three-day experience almost doubles that at 44 kilometres. Along the way, explore barely trod landscapes, vast high-country plains and uplifting mountain horizons.

Discover the full offering of summer hikes in Thredbo at thredbo.com.au.