Charting Uncertain Waters: The Future of Disney Cruises in Australia

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When Disney Cruise Line announced at the 2022 D23 Expo that the Disney Wonder would be sailing to Australia, the excitement was palpable and anticipation was widespread, with many booking on the first day that the cruises were released.

However, things have changed.

Recent developments, including ongoing discounts on Australian cruises—even for peak periods like Christmas and New Year—have raised questions about its future in the region.

As Virgin Voyages and P & O are no longer sailing in Australia, are these all signs that Disney’s days in Australia may be coming to an end?

The Current State of the Cruise Industry in Australia

The Australian cruise market has long been a vibrant segment of the global cruise industry, attracting millions of passengers each year. The market has shown significant growth since cruising resumed.

The Cruise Lines International Association reported that the industry is making a historic contribution of $8.43 billion to the Australian economy, supporting 26,000 jobs—significantly up from previous figures.

However, in recent times, several factors have led to a reevaluation of operations by various cruise lines. A combination of high operational costs, fluctuating demand, and economic factors has forced companies to reconsider their presence in the Australian market.

The departures of Virgin Voyages, Cunard and the dissolution of P&O Australia are significant indicators of the challenges faced by cruise lines in the region.

Whilst P&O Australia will no longer exist, her parent company Carnival Cruise Line will still operate ships out of Australia, and two of the three P&O ships will still homeport there. Pacific Explorer will be retired.

Another significant change is that in 2026/27 Carnival Australia will only home port in Sydney and Brisbane. These itineraries exclude many major ports such as Melbourne, Perth and Adelaide.

Virgin Voyages initially entered the Australian market with much fanfare.

“The feeling is that it’s going to do very well and hopefully it’ll become an annual event.”

However, this was not to be. Resilient Lady arrived in Sydney in December 2023 but announced just 2 months later that they would not return to Australia for the winter 2024/early 2025 season as planned.

Virgin Voyages released a statement in February 2024 saying:

“On the heels of these recent changes and based on the regional and government advice we have received, we remain very concerned about potential escalations in the Red Sea over the next 12 months. This significant and ongoing conflict puts unacceptable risks for safe passage through the region for our Sailors, crew and vessel (Resilient Lady). As a result, we have been left with no choice but to cancel our 2024-25 voyage season plans for Resilient Lady, impacting the late 2024 and early 2025 repositioning voyages between Europe and Australia  and a second sailing season in Australian waters.”

But it is likely there were some other reasons for this change.

Factors such as high operational costs, logistical challenges, and a focus on more profitable markets in North America and Europe may ultimately have led to their decision to pull out of Australia.

P&O Australia, a well-established player in the region, also announced its exit from the Australian market. Despite being a favorite among local cruisers, the company faced rising operational costs and a challenging economic environment that made it difficult to sustain profitability.

These exits have left many wondering about the future of other cruise lines, including Disney.

Disney Wonder has been sailing well below capacity – although I have heard rumors that Bluey and Bingo may be saving the day as bookings are reportedly up since they began sailing with Disney!

The Impact of Virgin Voyages and P&O Leaving Australia

The exit of Virgin Voyages and P&O from the Australian market serves as a significant indicator of the challenges faced by cruise lines in the region.

Virgin Voyages, despite its innovative approach to cruising, found that the Australian market did not yield the expected demand. This decision to withdraw highlights the volatility of the cruise industry and the need for companies to adapt to changing market conditions.

Of course, Virgin Voyages is a very different cruise line than Disney. It is an adult only cruise line and has a different target audience.

Having said that, I sailed on Resilient Lady late in 2024 and would absolutely do so again.

But, it is unlikely that Virgin Voyages withdrew solely because they had misjudged the demand for their brand of cruising.

They are not the only cruise line to leave.

P&O’s departure is equally telling. As a long-standing cruise line in Australia, P&O had developed a loyal customer base.

However, the combination of high operational costs and shifting consumer preferences led to its decision to suspend operations.

The exits of these cruise lines raise questions about the overall demand for cruises in Australia and whether Disney can sustain its presence in a potentially contracting market.

Will Disney Send a Newer Ship to Australia?

Another critical factor influencing Disney’s future in Australia is its fleet composition.

Currently, Disney operates several ships, including the Disney Wonder and Disney Magic, both of which are older vessels.

While these ships are still very popular, are a favorite of many, and are impeccably maintained, they lack some of the modern amenities and innovations found in Disney’s newer, larger ships.

There has been a lot of speculation about whether or not Disney will send one of the newer ships.

However, there is a very fundamental issue with this.

Most likely Disney was testing the waters to see what the demand and economic viability was for the newer ships.

However, all indicators are that Disney Wonder has not been the success that they hoped it was. Deals have been available for months for the Australian cruises – even the Christmas and New Years sailings were offering deals.

And there is another problem. How would the ships sail to Australia?

Disney Dream, Fantasy, Wish and Treasure cannot sail via the Panama Canal. They are too big to sail under the Bridge of the Americas.

So if Disney were to decide that a newer ship would have a better chance of success, the would need to go the route that Resilient Lady took via Europe. Bearing in mind the difficulty selling the cruises in this region it is unlikely that Disney will take that economic risk.

However, there is now hope that Australia will get one of the newer ships – although that is not likely to be for some time.

DCL announced that the 3 new cruise ships that will join the fleet between 2029 and 2031will be smaller than the Wish Class ships.

This might mean that they will be able to transit the Panama Canal.

Also we have to remember that Disney will have 13 ships in the fleet by 2031. This rapid expansion makes it more likely that a Disney ship will remain in Australia for at least a part of the year.

Economic Factors and Currency Exchange Rates

Additionally, the exchange rate between the Australian dollar and other currencies, particularly the U.S. dollar, plays a significant role in Disney’s decision-making process.

A weaker Australian dollar can impact the cost of operating cruises, making it less financially viable for Disney to offer its services in the region. This currency fluctuation adds another layer of complexity to the already challenging economic landscape.

And the exchange rate has made an already expensive cruise seem even more prohibitive for Australians. The prices to book and on board the ship are all in US dollars – and even though most things are included on a Disney Cruise, this makes extras out of the reach of many Australian cruisers.

Many Australian consumers have expressed frustration regarding Disney’s tipping policy.

Unlike the customary tipping culture in the United States, Australians are generally not accustomed to the practice of tipping, and the additional charge of $14.50 per person per day for gratuities understandably does not sit well with many.

This added cost, combined with the fact that onboard prices for drinks and other amenities are quoted in U.S. dollars, can make the overall experience feel more expensive for Australian passengers, potentially deterring bookings.

Will Disney Cancel Late 2025/Early 2026 Cruises?

Whilst only DCL knows the answer to this – it is very unlikely.

These cruises were released some time ago and whilst it is not unknown for a cruise line to cancel previously released cruises, there is one very big clue that this is unlikely to happen.

And the reason is this.

For the first time ever Disney will have 2 ships on the West Coast in spring 2026.

Disney Magic is sailing from Galveston and will arrive in San Diego on April 19 2026. Disney Wonder will also be in San Diego at that time and will finish her Mexico sailings on May 6, 2026.

So it could be that Disney Magic will take over from the Disney Wonder Alaska and Australian sailings.

There are a number of reasons why this would make sense. Disney Wonder has sailed the Alaska route for many years and a change may see more bookings there too.

And even though Disney Magic is the same basic design as Disney Wonder there are some interesting differences in restaurants, bars and shows that might make her more attractive, particularly to repeat Disney Cruisers in Australia.

As DCL is committing Disney Magic to a journey via the Panama Canal there must be a very good reason – this is a very popular cruise, but it is a very expensive one to operate as the fees to go through the Canal are extremely high.

What of the Future?

Whilst the 2026/7 season seems pretty much assured the future of Disney Cruise Line in Australia seems uncertain.

Very much will depend upon how well the cruises sell for the 2025/6 season and 2026/7.

If we are seeing the same level of discounts and deals for those seasons it will be interesting to see what happens in the future.

However, balanced against that is the rapid expansion of the Disney fleet, so let’s hope that DCL will remain in this part of the world for a long time into the future.

Only time will tell.

Related: All the Disney Cruise Ships Compared