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