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P&O Cruises to sail into sunset with Carnival to absorb fleet

By Millie Muroi

One of the country’s best known cruise line brands, P&O Cruises Australia, will shut down in March next year, with many of its ships to be operated by parent company Carnival Corporation.

On Tuesday, Carnival – the world’s largest cruise company – said in a post on its website that it would retire the P&O Cruises Australia brand in March 2025. Carnival said P&O’s Australian operations, which have been running for 90 years, would be folded into its Carnival Cruise Line.

Carnival Corporation chief executive Josh Weinstein said guest demand remained “incredibly strong”.

Carnival Corporation chief executive Josh Weinstein said guest demand remained “incredibly strong”.

“This change is the latest in a series of strategic moves designed to increase guest capacity for Carnival Cruise Line, the company’s flagship brand and the highest-returning brand in Carnival Corporation’s global portfolio,” the group said.

In its post, Carnival said it would be business as usual for current itineraries, with guests to be notified in coming days of any changes to future bookings.

“All itineraries on Pacific Explorer scheduled to sail after March 2, 2025 are being cancelled,” it said. “If you are booked on one of these itineraries you will be contacted by guest services in the coming days with refund details.”

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Passengers set to cruise in 2024 will not be affected while impacted guests will have the option of a full refund or credit with bonus onboard spending money.

Crews on the Pacific Explorer are expected to be redeployed to other ships but some workers in the P&O Australia head office will lose their jobs, a company spokeswoman said.

The decision to retire the P&O brand comes after two cruise brands, including Princess Cruises and Cunard, pulled out of Melbourne after a hike to port fees last year.

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Carnival Corporation chief executive Josh Weinstein said guest demand remained “incredibly strong”, and that the company would leverage its scale by absorbing the P&O brand.

He added the move should also strengthen Carnival’s performance in the South Pacific where it has operated since 2013, with Carnival Cruise Line to have four ships in the region including Sydney-based Carnival Splendor and Carnival Luminosa sailing seasonally from Brisbane, along with new sister ships once the transition is complete next year.

“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,” he said.

“Carnival Corporation remains committed to Australia, and we will continue to be the largest cruise operator in the region with 19 ships calling on 78 destinations and representing almost 60 per cent of the market.”

Carnival said P&O’s Pacific Encounter and Pacific Adventures ships would be rebranded and operated by the Carnival Cruise Line brand, while Pacific Explorer would exit the fleet in February next year.

While ships remaining in operation next year will be upgraded with features including an ordering app and loyalty program, Carnival Cruise Line president Christine Duffy said they would retain the “familiar feel and much of the same experiences” for Australian guests.

With AAP

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Original URL: https://www.theage.com.au/link/follow-20170101-p5jj91