What’s really behind the end of Australia?

Emily Murphy Emily Murphy
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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.

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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.

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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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How a $1 deal saved Bendigo’s historic tramways

    Megan Arkinstall Megan Arkinstall
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    The passionate community that saved Bendigo Tramways has kept the story of this city alive for generations.

    It was an absolute steal: a fleet of 23 trams for just $1. But such a fortunate purchase didn’t happen easily. It was 1972 when the Bendigo Trust handed over a single buck for the city’s historic collection of battery, steam and electric trams, which had transported locals since 1890.

    inside the historic Bendigo Tram
    Bendigo Tramways is a historic transport line turned tourist service. (Image: Bendigo Heritage)

    The city’s tram network had been declared defunct since 1970 due to post-war shortages in materials to upkeep the trams and declining passenger numbers as motor vehicles were increasing. However, determined locals would not hear of their beloved trams being sold off around the world.

    The Bendigo Trust was enlisted to preserve this heritage, by converting the trams into a tourist service. The Victorian government approved a trial, however news spread that the Australian Electric Tramways Museum in Adelaide had acquired one of the streetcars for its collection.

    a tram heading to Quarry Hill in 1957
    A tram on its way to Quarry Hill in 1957. (Image: Bendigo Heritage)

    An impassioned group rallied together to make this physically impossible. Breaking into the tram sheds, they welded iron pipes to the rails, removed carbon brushes from the motors, and formed a blockade at the depot. The community response was extraordinary, and a $1 deal was sealed.

    A new chapter for the city’s fleet

    the old Tramways Depot and Workshop
    The old Tramways Depot and Workshop is one of the stops on the hop-on, hop-off service. (Image: Tourism Australia)

    Today, Bendigo Tramways welcomes some 40,000 passengers annually, operating as a hop-on, hop-off touring service aboard the restored trams. Fifteen of the now 45-strong fleet are dubbed ‘Talking Trams’ because of the taped commentary that is played along the route. The trams loop between Central Deborah Gold Mine and the Bendigo Joss House Temple, which has been a place of Chinese worship since 1871, via other sites including the old Tramways Depot and Workshop.

    a Gold Mine Bendigo Tram
    The fleet comprises 45 trams that have been restored. (Image: Visit Victoria/Robert Blackburn)

    Keeping things interesting, throughout the year visitors can step aboard different themed trams. Tram No. 302 becomes the Yarn Bomb Tram, decorated both inside and out with colourful crochet by an anonymous group of locals.

    During the festive season, Tram No. 15 operates as a tinsel-festooned Santa Tram, and the big man himself hides out somewhere along the route for excited children to find. And on selected dates, the adults-only Groove Tram runs nighttime tours of the city, accompanied by local musicians playing live tunes and a pop-up bar.

    the historic post office turned visitor centre in Bendigo
    Visitors can hop on and off to see the city’s sites such as the historic post office turned visitor centre. (Image: Tourism Australia)

    As well as preserving the city’s history, however, the continuation of the tram service has kept the skills of tram building and craftsmanship alive in a practical sense. Bendigo’s Heritage Rail Workshop is world-renowned for restoring heritage trams and repurposing vehicles in creative ways.

    Locally, for example, Tram No. 918 was transformed into the Dja Dja Wurrung Tram with original Aboriginal artworks by emerging artist Natasha Carter, with special commentary and music that shares the stories and traditions of Bendigo’s first people. You can’t put a price on preserving history. Nonetheless, it was a dollar very well spent.