At a time when cruise lines are reducing their Australian operations, Princess Cruises is bucking the trend, confirming plans to return to seasonal homeporting in Melbourne in 2028/29, almost five years after announcing its withdrawal from the Victorian capital.
The move is expected to deliver an estimated $40 million economic benefit for the state, offering a welcome boost to tourism businesses and Victorian cruisers who have missed sailing with Princess from their own backyard.
Princess announced in November 2023 that it would stop homeporting ships in Melbourne from the 2025/26 season, following a 15 per cent increase in port charges.
The decision also affected Cunard, with both brands planning to deploy ships elsewhere rather than maintain their Melbourne homeporting operations.
While Princess ships continued to visit Melbourne, cruise calls are not the same as homeporting.
A ship based in a city offers regular departures, giving passengers the opportunity to begin and end holidays locally and generating spending on accommodation, restaurants, transport and tourism experiences.
The withdrawal highlighted the pressure port costs can place on cruise deployment decisions, particularly when operators can move ships to other markets.
Now, Princess is preparing to rebuild its relationship with Victoria.
Matthew Rutherford, Princess Cruises’ Vice President Asia Pacific, said the return reflected the cruise line’s longstanding connection with the state and the strong enthusiasm the line continues to see from Victorian cruisers.
“We know how much our guests value being able to start their holiday closer to home and we’ve heard clearly that they have missed having a Princess ship based in Melbourne,” Mr Rutherford said.
“Victoria remains an important market for Princess, which is celebrating 50 years in Australia. The company hopes the return will strengthen its homeport markets, although it is not yet clear whether the additional departures will attract significant numbers of first-time cruisers.”
He added the economic stakes are considerable and that cruise tourism contributed $7.32 billion to the Australian economy last financial year.
“We expect our 2026/27 Australian season to generate $167 million in national economic impact.”
That season includes 62 departures across 42 itineraries, with four ships providing a range of cruise experiences.
However, Australia’s ability to attract more ships and longer seasons remains a challenge. Rising operating costs, port fees and competition from international markets continue to influence where cruise lines deploy their fleets.
The announcement provides a rare piece of positive news for an Australian cruise industry facing mounting uncertainty. Carnival Cruise Line has confirmed it will withdraw Carnival Luminosa and Carnival Adventure from Australian operations in March 2028, prompting Cruise Lines International Association (CLIA) to warn that rising costs and regulatory uncertainty are undermining Australia’s competitiveness as a cruise destination.
The full details of Princess Cruises’ 2028/29 Australian summer program will be announced on 28 October 28, with itineraries going on sale from November 11. The cruise line has yet to confirm the number of Melbourne departures or the length of the homeport season.
For Victorian cruisers, the return is welcome news. For Melbourne’s tourism industry, it represents an opportunity to recover some of the economic activity lost when regular homeporting ceased.
But one returning cruise line will not resolve the industry’s broader challenges. Competitive port costs, sustained passenger demand and a stable operating environment will be crucial if Melbourne wants to secure more ships and make this comeback last.
