Revealed: The destination stealing Australia’s cruise ships

It’s been a remarkable mystery for months. But why, as our love of cruising is soaring, has the industry cut back on Australia’s cruise ships?

Now, after analysing the routes of five major cruise ships leaving our shores in the coming seasons, Cruise Passenger can reveal four vessels are heading to the same destination. And looking at the cruise fares charged there, it isn’t hard to figure out why. 

Four of the five ships will be sailing in the Caribbean, which offers better access and higher fares for major cruise lines than sailing out of Australia. 

An examination of prices gives some insight into why this trend is taking place and why Australia’s cruise ships are leaving.

• An eight-night roundtrip from Singapore to Bali starts from $2022
• A seven-night sailing in Japan from Beijing starts at $2256.

Both these prices are much higher than you’d expect to pay for a week of sailing with Royal Caribbean in Australia, which would generally be closer to the $1100-$1400 mark.

While the industry is reluctant to talk openly about this move, Cruise Lines International Association Australasia MD Joel Katz has spoken in the past about high port fees, regulations and the inability to expand access to Sydney as deterring cruise lines from putting their best ships here.

Line bosses like Norwegian Cruise Lines Harry Sommer has been particularly vocal, speaking out about how difficult it has been to get access to the Overseas Passenger Terminal. And this is a major factor in why Australia’s cruise ships are heading to the Caribbean.

Attempts by Australia’s cruise ships to gain access to Garden Island, the naval base less than a couple of kilometres from Sydney’s CBD, have been blocked by governments for decades, making sailings from Sydney difficult. Only mid-sized vessels can reach White Bay Cruise Terminal, which involves passing under the harbour bridge.

The list of Australia’s cruise ships that are leaving

Royal Caribbean is going from three ships in Australia to two, and slashing the class of ships. Just one Quantum vessel replacing two.

Anthem of the Seas and Voyager of the Seas arrive in 2025/2026. Brilliance of the Seas makes way next season and won’t return to Australia. Instead, it is set to sail in the Caribbean next season. 

Ovation of the Seas is also leaving. She will pivot to Asia for 2025/2026 sailings.

Another big loss to Australia’s cruise ships was the confirmation that Resilient Lady will not return for a second season. Come next year during the 2024/2025 Australian cruise season, she’ll be sailing roundtrips out of San Juan and Miami, on a range of Caribbean itineraries. 

A favourite to Australian shores since 2013/2014 has been the Queen Elizabeth, from the Cunard fleet. However, she’ll cease homeporting in Australia from 2025/2026, instead sailing itineraries in the Caribbean. She’ll sail a range of roundtrips out of Miami, ranging from nine to 21 nights. 

Aussie cruise faithful were shaken last week by the news that Grand Princess wouldn’t be returning to Australia in 2025/2026 as scheduled.

Princess Cruises won’t the ship. But rather opting to homeport only two ships in Australia. Once again, Grand Princess is heading to the Caribbean, set to the homeport of San Juan from October 2025. 

Princess Chief Commercial Officer Terry Thornton had the following to say: “Puerto Rico remains one of the fastest-growing destinations in the Caribbean and continues to attract new airlift from source markets across the US as well as markets in Europe and South America, which makes it a great fit for Princess. Plus, there are many outstanding options to choose from for a great pre-or post-cruise stay.”

Why are Australia’s cruise ships going to the Caribbean?

The numbers

• Around 55% of Royal Caribbean’s deployment is currently in the Caribbean
• In 2023, 63% of Carnival Corp revenue came from North America, versus 55% of revenue from North America, 56% in 2018 and 53% in 2017
• In 2023, Australian cruises represented 5% of revenue for Carnival Corp, versus 13% in 2019. Going back to 2017, the percentage of revenue coming from Australia was as high as 15%. 
• The Asia Pacific market represented around 8% of all revenue in 2019, however, in 2023, the Asia Pacific market represented just 6% of all revenue.

At Royal Caribbean’s first-quarter earnings calls, President and CEO Jason Liberty gave insights into why the Caribbean is the place to be for large cruise ships. 

Around 55% of Royal Caribbean’s deployment is currently in the Caribbean. Many of these itineraries are based around Royal Caribbean’s private island experience, Perfect Day at CoCoCay. 

Liberty says Caribbean itineraries are pulling in a new demographic of younger cruisers, which appears to be financially beneficial for the line in several ways.

“One of the incredible things that we’re seeing out of destinations like Perfect Day — and we’ll see this in the Royal Beach Club in Nassau — is how it’s drawing in new-to-cruise (passengers) and millennials.”

The younger cruiser

Liberty also mentioned that pre-bookings have experienced, with younger cruisers tending to prebook cruises and onboard activities earlier, as well as engaging more with digital methods of booking.

“Our journey to deepen the relationship with the customer continues this year.

“We are removing friction and unlocking travel planning by investing in a modern digital travel platform, making it easier than ever for guests to book their dream vacations while allowing us to expand wallet share.”

The numbers are looking similar for Carnival Cruises Corporation. While their last annual report doesn’t provide exact segmented data for the Caribbean, it does reveal that 61% of profits are coming from North America. 

Compared to 2019 Carnival Corp registered 55% of revenue from North America, 56% in 2018 and 53% in 2017. This suggests a post-COVID focus on the North American region.

Furthermore, in 2023, Australian cruises represented 5% of revenue for Carnival Corp, versus 13% in 2019, the last pre-pandemic year of cruise. Going back to 2017, the percentage of revenue coming from Australia was as high as 15%. 

The numbers show a clear decline in revenue coming from Australia, and the moves of Carnival Corp such as withdrawing Queen Elizabeth and Grand Princess from Australia seem to suggest their focus is shifting elsewhere. 

Norwegian Cruise Line Holdings’ annual reports show similar figures. The Asia Pacific market represented around 8% of all revenue in 2019, however, in 2023, the Asia Pacific market represented just 6% of all revenue. This is especially pertinent as NCL sails with just one ship in Australia, meaning a large portion of the Asia Pacific revenue is coming from Asia, rather than Australia. 

NCL has seen its biggest revenue increases in Europe, likely due to the success of luxury lines Oceania Cruises and Regent Seven Seas in the region.

Another issue is that NCL insiders have directly communicated to Cruise Passenger that cruise capacity issues in Sydney mean that the cruise line is not sending over its best and biggest ships.

Newer cruise ships represent the best profitability for cruise lines, as they can charge higher fares for the new facilities and there are more onboard activities to be offered.

However, factors like rising port taxes in Melbourne and lack of cruise capacity in Sydney, mean cruise lines aren’t sending their best and biggest ships to Australia.