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.

We round up the luxe, the lovely and the latest places to stay in regional Victoria.

1. Hotel Ernest, Bendigo

Settle into this artful lodging in the city centre for a boutique stay with heritage roots dating back to 1864. Each of the 10 suites in this former bank is elegantly styled and furnished with covetable works by Australian artists. Ernest is also home to the much-lauded Euro-style Restaurant Terrae, so be sure to book into the two-level diner during your visit.

2. Norsu Cabin, Macedon

a look inside Norsu Cabin, Macedon — Settle into this Scandi-inspired abode. (Image: Nick Skinner)

Country cabin dreams come to life under the sweet timber A-frame of Norsu . Sleeping eight guests, this Scandi-inspired abode is so meticulously styled it’s received knowing nods from The Design Files and is everything a modern log cabin should be, including cosy fireplace, fire pit, modern appliances and French linens. Perfect for logging out of daily life for a moment.

3. Islay House, Woodend

the bedroom at Islay House, Woodend — Bed down at the gorgeously restored heritage Islay House. (Image: Tiffany Warner)

Lean all the way into a country luxe state-of-mind with a stay at the gorgeously restored heritage Islay House . This bed and breakfast sleeps up to nine guests and is just a short walk from town, but you’ll want to spend most of your time curled up fireside in the elegantly styled rooms as you admire the collection of antiques.

4. Nerissa Rye, Mornington Peninsula

This Rye beach pad is just a 10-minute walk from 16th Beach, and while a morning walk is lovely, returning to the barefoot luxe vibes of this four-bedroom escape is just as enlivening. Bright, open and welcoming, this is the place to settle in for endless cups of tea and a good book between beach jaunts.

5. Hotel Vera, Ballarat

a close-up of the bed at Hotel Vera, Ballarat — Modern meets bygone elegance.

This Ballarat beauty set in a 1900s mansion is all bygone elegance edged with modern style. Just seven boutique suites, each with its own distinct personality, makes it a singularly luxe stay. Sister to Bendigo’s Hotel Ernest, Vera is similarly bequeathed with a stand-out fine diner, Babae, which plates up the best of the region’s produce.

6. Hotel Sorrento, Port Philip Bay

The historic and iconic clifftop Hotel Sorrento at Port Philip Bay is mid-refurb and will reopen 1 December 2025, just in time for Amalfi-style beachside stays.

7. The Idle Lake House, Lakes Entrance

Enjoy a ripple of serenity when you step aboard this water-top abode on the Gippsland Lakes. Once a Chinese restaurant, this spacious and stylish two-bedroom stay offers unbroken gazing of the shimmering surface in a beautifully private bay. Lounge on the deck and enjoy the onboard bathhouse; come evening, sit by the sleek suspended fireplace.

8. The Monty, Anglesea

the bedroom at The Monty, Anglesea — Bed down at the vintage motel, The Monty.

Palm Springs makes an entrance on the Great Ocean Road with the opening of The Monty in October 2025. Its vintage motel meets modern muse at this playful boutique stay complete with pool and a vibrant Mexican cantina. You’re just a stroll from the beach here, which tells us it’s ripe for summer vacays this season.

9. Trentham Waters Resort, Mildura

vibrant bedroom wall and pillows at Trentham Waters Resort, Mildura — The bright and retro-style bedroom at Trentham Waters Resort.

Another new property lands in regional Victoria in time for an endless summer with Trentham Waters Resort expected to open by February 2026. Breezy, subtly retro and brightened by the big Mallee sky, this river’s-edge escape is perfect for settling in for a spell with one-, two- and three-bedroom villas. There’s a lagoon-style pool, riverside hot tubs and onsite dining for all your relaxation requirements.

10. Crowne Plaza, Geelong

the Trattoria Bar in Crowne Plaza, Geelong — Sink a cold one at the Trattoria Bar.

Geelong is getting its own Crowne Plaza in 2026. Its arrival on the waterfront will make it the city’s largest (and newest) hotel with 200 contemporary rooms and suites, a Skybar, all-day dining, indoor pool and gym, and event spaces. Keep it on your radar.

11. Re’em, Yarra Valley

a private tub with lush views at Re’em, Yarra Valley — Sip and soak in tranquillity.

With verdant Yarra Valley views that take in the linear beauty of tended grapevines, the 16 suites and rooms at Re’em are set amid the Helen & Joey Estate and invite sipping and sitting in tranquillity. The onsite restaurant deftly balances Chinese and Australian flavours and if you’re staying over the weekend, be tempted out of your stylish room for yum cha that features delicate handmade dumplings and vineyard vistas.

12. Arapiles Clubhouse and Crash Pad, Grampians

the yard front door of Arapiles Clubhouse and Crash Pad, Grampians — Spend an overnight stay in the Natimuk stone house. (Image: Bianca Jackson)

These 1880-era mountain-adjacent digs have been tenderly restored to provide rock climbers and Grampians country wanderers a chic place to rest. You’ll find four bedrooms in the Natimuk stone house, as well as a heated pool out the back and plenty of luxe embellishments. There’s also a two-person ‘Crash Pad’ in the confines of the Clubhouse with its own separate entrance.

the lounge at Arapiles Clubhouse and Crash Pad, Grampians — The Crash Pad offers a resting place for rock climbers and Grampians country wanderers. (Image: Bianca Jackson)

What’s really behind the end of Australia?