Billboards across Sydney are celebrating that, when P&O Cruises merges with Carnival Australia next year, the cruise line’s legacy will live on.
“Same Line – same sweet memories” says the billboards.
But while the ships will carry design references to both brands, a Carnival Cruise in Australia is far more expensive than any P&O itinerary.
Depending on how long you’re looking to cruise for, currently a Carnival cruise costs between 30 – 90% more than a P&O cruise.
How much extra for a three-night cruise?
The average cost of an interior four-day cruise with Carnival in Australia is $682.65, which averages at $170 a day. Princes range from $619 to $854 for the quick getaway.
A ‘Classic Short Break’ with P&O is priced at $354.58, averaging at $88.5 a day. This represents a 92%, a significant increase for P&O cruisers who want to make the jump to Carnival.
For example, if a family is purchasing a three-night cruise for four people, they’ll be paying $327.92 extra per person, totalling $1311.70 extra per cruise.
Furthermore, P&O offers other three-night cruises such as Disco Glam from $358.72, a 90s short cruise from $356.65, Aussie Classic’s cruises from $358.72, Comedy Cruises from $328.72 and more, representing other cheaper options that may cease to exist.
It’s unclear which of P&O’s themed cruises will be carried over to Carnival.
P&O Australia was known as the nursery, where many cut their teeth on cruising at a very affordable rate. The change will allow Carnival Australia to charge a much more sensible market rate from the cruise line’s point of view – but will also disenfranchise a swath of Australian cruisers.
How much extra for a 10-night cruise?
While the rising prices for a slightly longer cruise are not as dramatic, the numbers are still significant. A 10-day Carnival Cruise currently averages at $1076.75, coming out to $107.67 a day, with starting prices ranging from $1019 up to $1359. Whereas P&O cruises 10-day offerings average out at $831.5, or $83.15 per day, starting at $679 and going up to $930. This represents a 29.4% price rise for those looking to jump ship from P&O to Carnival.
Many budget cruisers look for something below the magic line of $100 per day, the end of P&O cruises plus rising fares across the board could signal the end of cruise fares under a $100 per day in Australia.
For example, a family of four would have to pay an average of $981 extra in total if opting for a Carnival Cruise instead of a P&O cruise.
Profitability issues
All the industry talk when the announcement of P&O’s imminent fate was made contained the same key word: ‘profitability’. Since Covid many cruise lines have found themselves in a dog fight to make operations more profitable to stave off their debts incurred going the years of no-cruise activity.
P&O Australia Cruises being absorbed into Carnival not only allows for a raise in fares, but also for the Carnival brand to standardise their marketing, branding and logistics, allowing them to cut costs and increase their per-passenger profitability.
Also notable is that while P&O operates out of a range of ports, Carnival only sails out of Sydney and Melbourne. Through standardising itineraries the cruise line can save more money on fuel and logistical costs, such as supplier fees.
Furthermore, much has been made of the fact that Australia isn’t proving to be the most cost-effective destination for cruise lines, with high port fees, extensive government regulations and rising fuel costs all taking a toll.
Carnival Corp has been downsizing their operations across Australia, axing the Grand Princess and Pacific Explorer from its fleet, signaling its intention to scale back Australian operations.
Josh Weinstein, chief executive officer of Carnival Corporation & plc hinted at profitability as the reason for the absolving of the P&O brand.
“However, 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.”
It remains to be seen if operations will continue to scale back or if the corporation can find a way to start delivering more reliable profits in Australian waters. With Alaska and the Caribbean proving popular destinations for cruise ships at the moment, worries remain over how many ships will remain in Australia.
