Exclusive: Princess Boss Backs Federal Summit to Solve Australia’s Capacity Crisis

• Princess Cruises is backing the idea of a cruise summit with the Federal Government.
• VP of APAC Matthew Rutherford warns failure could cost millions of dollars in tourism revenue.
• Rutherford says as Crown Princess kicks off the 2025/2026 season, he hopes to win more ships for Australia once issues like port charges and regulations are fixed.

Princess Cruises has backed Cruise Passenger’s call for a federal government summit to tackle the mounting problems facing the cruise industry in Australia, warning that without urgent action, the nation risks losing ships, passengers, and billions in economic benefit.

Speaking exclusively to Cruise Passenger, Matthew Rutherford, Princess Cruises’ Vice President Asia Pacific, said Australia needed a whole-of-government strategy similar to those adopted in New Zealand and the UK.

“I’m right behind your articles,” he told Cruise Passenger. “The major thing is that we need government from the top down to say tourism—and cruise tourism—is important. Then they must work across all the agencies, destinations, supply chains and stakeholders. If that rhythm is upset, the whole system suffers. Only a national strategy will fix it.”

Rutherford revealed he had already discussed the issue with New Zealand tourism minister Louise Upston.

“I met with the minister on Monday and we talked at length about creating a trans-Tasman group, which is exactly what you’ve been advocating for. It’s positive, and I think we’re all moving in the right direction. Now we just need more people to join the plan.”

He stressed that piecemeal increases in costs—such as port fees—could derail itineraries worth millions to the economy.

“We can have a million-dollar increase in port fees which can stop a whole ship coming and blow $100 million in economic value. The focus has been too one-dimensional. We need to look at the big picture: how do we secure that $100 million, not how do we add another million-dollar fee.”

The call comes as Australia’s cruise season kicked off with the arrival of Crown Princess in Sydney today after a world cruise. She is now off on a 28-day round Australia voyage.

The Crown Princess passengers are lucky. Princess Cruises says its two ships based in Australia are close to sold out, with demand surging ahead of supply.

Rutherford told Cruise Passenger: “We’re in the last stages of it. They’re selling well—we’re selling with Aussies, Kiwis, Americans, Brits, Japanese, Europeans… demand is really strong across the board.”

He warned that the squeeze means loyal Princess fans risk missing out. His advice: Book well in advance.

“The booking curve is so much longer now. That’s why we’re releasing programs almost two years out—we never did that before. The demand is there and we’re unveiling our programs early. If guests can’t get here, they’re going somewhere else—whether it’s Singapore, Japan or overseas. That’s what we’re finding.”

Rutherford said the solution is clear: more ships. “That’s the answer everyone wants to see—but until then, people will need to book early or risk missing out.”

Growing the Princess’s Fleet in Australia

While candid about the challenges, Rutherford was equally firm about his ambitions for Princess Cruises in Australia.

“As a cruise veteran of 13 years here in the Australian market, my primary goal is to make Australia a more attractive place to cruise from and attract more cruise ships into our region,” he said. “We want Princess to lead on that.”

Before COVID, Princess had up to five ships based in Australian waters. Currently, the line operates two. Mr Rutherford made clear the ambition is to rebuild.

“Our target is to grow the Asia Pacific region back to where we were,” he said. “We’re going to work hard to compete with other regions of the world for ships, and make sure our ecosystem is prosperous.”

Princess already holds the title of Australia’s number one premium cruise line, and Rutherford said the focus is now on expanding that reach globally.

“We’re seeing more Australians than ever cruising out of Japan, the Mediterranean, and Alaska, where Princess is the number one brand. These are all destinations Australians love, and we want to keep growing that.”

Japan, Asia and New Zealand

Princess has long championed fly-cruise, and the line is doubling down on its programs in Japan and Singapore. Rutherford said demand is rising sharply.

“Japan is an amazing cruise destination,” he said. “It’s a maritime culture, and cruising takes you beyond Tokyo, Kyoto and Osaka to parts of Japan you’d never otherwise visit. Australians are responding in huge numbers.”

He added that Singapore continues to provide a strong base for Asian sailings, with itineraries stretching north into Southeast Asia and across to Australia.

Closer to home, New Zealand is winning plaudits for its whole-of-government approach.

“I’m very impressed with the way their ecosystem has pulled together in the right direction,” Rutherford said. “We’re working with them now to try and get more ships there. People want to cruise New Zealand—it’s one of the great destinations of the world.”

Will Prices Go Up

Asked about rising costs and fares, Mr Rutherford admitted prices will remain “under pressure,” but insisted Princess would not compromise on value.

“If we want to get more ships in this region, we need to make our ecosystem more competitive,” he said. “Pricing is one lever, but so are supply chains, sourcing locally, and ensuring ships can operate efficiently.”

He said Princess was proud of its premium positioning.

“Guests know the value of what they get with Princess—the food, the service, the entertainment are all a step above. Our teams are working very hard to make sure we continue to justify that premium status.”

He also pointed to the line’s bundles and packages.

“Our Princess Plus and Premier bundles are fantastic value. Once Australians unlock the value in those, as Americans have, they’ll see just how much is included. From dining to drinks to Wi-Fi, it all adds up to a better experience and better value than people realise.”

Local Commitment and Community

Rutherford spoke to Cruise Passenger while rolling up his sleeves for a local beach clean-up at Long Reef, part of a Maritime Day initiative.

“It’s fantastic to be here,” he said. “Princess has always been about more than just ships—we want to contribute to the communities we sail to. That’s part of our ethos as a brand.”

Back to Growth

Asked whether Princess would return to five ships in Australian waters, Rutherford said the ambition is alive.

“We want to see the Asia Pacific region grow back to where it was. We know what we need to do internally, and we’re working with stakeholders across the region to make that happen. If we can get the ecosystem working in the same direction, there are huge opportunities for the industry.”

He added: “We’re positive. We’ve got a really committed team here at Princess Australia, many of whom have been with the company for a long time. We all remember what it was like in 2017–2019, and we’re working towards bringing those days back.”

Princess Cruises half-century in Australia

This summer marks Princess Cruises’ 50th anniversary in Australia, making it the longest-serving international cruise brand in the country (P&O Australia was 92, but merged with Carnival earlier this year).

“I’m really proud of that milestone,” Rutherford said. “Princess has been part of the DNA of cruising here, and we’re going to continue that legacy.”

The season will be headlined by the arrival of Discovery Princess, the first Royal-class ship ever to be based in Australia.

“It’s a stunning ship, and we’re excited to be bringing her here for Australians to experience,” said Rutherford.

The anniversary celebrations will also include program releases, special sailings, and events marking half-a-century of Princess Cruises shaping Australia’s love affair with the sea.

The full Princess 2027/28 Princess Program will be released in November.

Find out more here.

Cruise Passenger has contacted the office of Tourism and Trade Minister Don Farrell about a summit.