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.

Aussies might think they know what Port Stephens is all about – but it’s time to take another look.

You might’ve driven through this NSW coast town. Maybe even stopped for fish and chips or a quick dip. But spend a long weekend in the new Port Stephens , and you’ll seriously regret not doing it sooner. We’re talking treks across beaches, reef dives and up-close time with rescued koalas.

All in all? It only takes a day before you see Port Stephens in a whole new light, and not much longer until it’s locked in as your favourite family destination.

1. Stockton Sand Dunes

Port Stephens incredible Stockton Sand Dunes are the largest moving sand mass in the Southern Hemisphere. They shift like an endless magic trick across the Worimi Conservation Lands , a 4200-hectare coastal co-managed by the Traditional Owners.

Tear over them in a 4WD. Rev through valleys soft as melting ice cream on a quad. Carve down 30-metre slopes on a sandboard. However you choose to cross them, you’re guaranteed a seriously wild ride.

Four rugged 4WDs kick up trails of golden dust as they charge across the sweeping desert landscape. — Chase thrills across shifting sands. (Image: Destination NSW)

2. Scale Tomaree Head Summit Walk

A short climb through bushland opens up to the coastal drama of Tomaree Head . Spot Zenith, Wreck and Box Beaches. See the Fingal Island lighthouse and offshore rookeries where Australia’s rarest seabird, the Gould’s petrel, nests.

History buffs can’t miss the WWII gun emplacements. And if you’re hiking between May and November, bring binoculars. Travelling whales might just be breaching below.

Friends enjoying a scenic walk along the Tomaree Head Summit Walk in Tomaree National Park, Port Stephens. — Climb Tomaree Head for jaw-dropping coastal views. (Image: Destination NSW)

3. Watch out for whales

You’ve seen the spouts of migrating humpbacks and southern right whales from shore. Set sail from Nelson Bay to see them up close. Cruise straight into the action, with tail-slaps, barrel rolls and all.

And they’ve got competition from the local show-offs. Port Stephens bottlenose dolphins leap and play. Some tours even spot pudgy fur seals, spending lazy days soaking up the sun on Cabbage Tree Island.

A whale’s tail on the sea’s surface. — Watch for ocean tails. (Image: Destination NSW)

4. Port Stephens Koala Sanctuary

Pop into the Port Stephens Koala Sanctuary to learn about the rescued koalas who climb, nap, snack and heal in this natural patch of bushland. Wander the immersive Sanctuary Story Walk to discover more about their habits, then head to the SKYwalk – a treetop platform constructed for spotting these eucalyptus-loving locals. Peek into the hospital’s viewing window, where sick or injured koalas may be resting in their recovery enclosures.

Not enough time around these adorable marsupials? Stay overnight in silk-lined glamping tents.

Koala sleeping in a tree at Port Stephens Koala Sanctuary, One Mile — See koalas in their natural habitat. (Image: Destination NSW)

5. Diving Port Stephens

Port Stephens has some of NSW’s best dive spots. At Fly Point, float through sponge gardens and coral castles thick with nudibranchs (AKA sea slugs). Halifax Park has blue gropers and crimson-banded wrasse, while Shoal Bay’s seagrass meadows hide pipefish, cuttlefish and octopus.

Accessible only by boat, Broughton Island is home to a vast array of marine (and bird) life. Snorkel with blue devilfish and stingrays at sites like The Looking Glass and North Rock. More experienced divers can head out with one of the many PADI-certified operators.

At nearby Cabbage Tree Island, expect to see shaggy-faced wobbegongs cruising along.

A couple suited up and ready to dive into adventure. — Suit up and dive into Port Stephens’ vibrant marine life. (Image: Destination NSW)

6. Irukandji Shark and Ray Encounters

Not quite ready to dive in? Irukandji Shark and Ray Encounters is the perfect way to spot local marine life without getting too deep. But there’s no obnoxious glass tank tapping here. Instead, this interactive aquarium allows guests to wade into natural-style lagoons that mimic the real thing.

Gently pat Port Jackson and bamboo sharks, hand-feed rays, and feel their sandpapery skin with your fingertips. It is all under expert guidance. If you want to go deeper, pop on a wetsuit and swim alongside tawny nurse sharks, white-tipped reef sharks and zebra sharks in the lagoon.

Family enjoying an animal feeding experience at Irukandji Shark and Ray Encounters, Anna Bay. — Meet the ocean’s friendliest faces at Irukandji. (Image: Destination NSW)

7. Fish the estuaries

Fishing fanatics will fall for Port Stephens hook, line and sinker. Here, one of the largest estuary systems in the whole state sees tidal rivers and mangrove ecosystems. Waterfronts are thick with oysters, and residential fish that might include anything from bream, whiting and flathead, to blue swimmer crabs, kingfish and longtail tuna.

If you prefer to choose your own adventure and fish offshore, you can hire a boat from one of the marinas and set your own course.

three men fishing on a boat in port stephens — Join a tour or chart your own fishing trip. (Image: Destination NSW)

8. Taste new Port Stephens flavours

With plenty of activity to fill your days, refuelling on delectable cuisine becomes equally important. And Port Stephens answers the call.

Pop into Holbert’s Oyster Farm for fresh-farmed Port Stephens rock oysters and Pacific oysters, Australian king and tiger prawns, as well as a variety of tasty sauces to try them with.

Take a group to Atmos for an authentic Greek experience over large shared dishes and Greek-inspired cocktails. Or feast on sea-to-plate, modern Australian dishes at the pet-friendly Restaurant 2317.

A plate of fresh oysters. — Slurp your way through the region’s best oysters. (Image: Destination NSW)

Start planning your Port Stephens getaway at portstephens.org.au .

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