P&O Cruises Australia shutting down as Carnival Cruise Line grows

Parent company Carnival Corporation said it was diverting resources to where the most demand was. Photo / Supplied

Travellers planning to book a cruise on the P&O Pacific Explorer around New Zealand may want to hold tight after an announcement by the brand.

P&O Cruises revealed the Australia brand will be sunset in February. All sailings on the Pacific Explorer will be cancelled from March 2, while Pacific Adventure and Pacific Encounter will be integrated into the sister line, Carnival Cruise Line.

The announcement was made via P&O’s website, which stated the company was “immensely proud of P&O Cruises Australia’s 90-year heritage”.

Carnival Corporation & plc, the cruise ship line’s parent company, announced the news on Tuesday and confirmed P&O would be integrated into Carnival Cruise Line. From March, it would no longer exist, but Pacific Encounter and Pacific Adventure would continue to sail under the Carnival Cruise Line brand.

It’s not unusual to see smaller cruise lines being restructured into larger lines.

“There’s been a lot of restructuring — a lot of bigger cruise lines, you take over smaller ones,” she says.

This does not mean P&O Cruises Australia is insolvent or business is tanking — rather, the parent company saw more efficiencies by restructuring the brand into its larger line.

A statement from Carnival Corporation CEO Josh Weinstein suggested the strategic move had been made to divert resources to where the most demand was.

“Despite increasing Carnival Cruise Line’s capacity by almost 25 per cent since 2019, including transferring three ships from Costa Cruises, guest demand remains incredibly strong,” he said.

“So, we’re leveraging our scale in an even more meaningful way by absorbing an entire brand into the world’s most popular cruise line.”

After the integration next year, Carnival Cruise Line will make up about 35 per cent of the company’s total global capacity. Between 2019 and 2028, Carnival Cruise Line is expected to grow 50 per cent.

Carnival, based in Miami, appears to see the South Pacific as too expensive to operate in.

“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.

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What happens to P&O Cruise passengers who booked trips?

Travellers booked on a Pacific Explorer cruise that departs after March 2 will have their trips cancelled and refunded.

P&O apologised for the “necessary” change and said all guests affected by the cancellations, including travel agents, had been emailed.

If passengers paid a deposit, they can receive a full refund or Future Cruise Credit with bonus Onboard Spending Money. Those who booked with travel agents will get their refund through their agent.

P&O said refunds could take up to 20 business days after the online form closes on June 30.

Cruises departing before March 2 will go ahead as planned. On October 30, the final Pacific Explorer sailing from Auckland is scheduled to depart, and arrive in Melbourne five nights later.

“If you are booked to cruise before this date, your itinerary is unaffected and we look forward to welcoming you on board soon,” the company wrote.

The Pacific Explorer returned to Auckland on August 12, 2022, after international borders reopened, to a fanfare welcome. Since then it’s operated many newsworthy cruises, including one that rescued a stranded man who had capsized near Noumea, and intercepted a small yacht in distress, providing medical care to one of the guests.