The rises and falls of the cruise ship industry

Published

March 13, 2025

Illustration from a postcard of a large, white cruise ship surrounded by many smaller boats.

Cruise ships are one of the most popular travelling methods in contemporary society. Yet their appeal has risen and fallen across many moments in time. With the recent announcement that cruise operator P&O will be closing its Australian bases in 2025, what is the history of cruising in our waters?

The very first cruise – meaning a seagoing voyage that includes sightseeing as well as destinations – occurred in 1844 by Peninsula & Oriental (later known as P&O)’s mail delivery ships from London to the Mediterranean. In Australia, however, it was not until December 1932 that P&O’s steamer Strathaird undertook the first local cruise, from Sydney to Brisbane and Norfolk Island.

A black and white photograph showing a large, white cruise ship sailing towards a dock where there are crowds of people and cars waiting for it. The Sydney Harbour Bridge is at the left edge of the image.

STRATHNAVER entering dock at West Circular Quay, Sydney. Crowd awaits its arrival at wharves in foreground.

Black and white photograph of a large white cruise ship eith smoke coming from the funnels, at the dock in Sydney. The Harbour bridge is viable in the backgraound.

P&O passenger liner STRATHAIRD at No 4 Circular Quay on Saturday 31 December 1932. Image captured from 8.08am boat Mosman to Quay.

A black and white photograph taken from a high elevation down on a harbour, with a large white cruise ship at the dock closest to the camera an many other smaller boats in the water and at other docks. The background is an old city.

Image depicts STRATHNAVER berthed starboard West Circular Quay, Sydney. View possibly taken from Harbour Bridge looking down and across to Sydney Cove. Rocks area with warehouses at lower right Building with "Farmers & Graziers" on top at C. background.

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During World War II, between 1939 and 1945, many commercial vessels, including cruise ships, were modified for naval purposes by the Royal Australian Navy. Among them was MV Manoora, a cruise ship built for the Adelaide Steamship Company.

This large ship was converted first into an armed merchant cruiser, carrying formidable guns. Manoora then became a landing ship infantry, taking soldiers to invasion beaches in Australia’s fight against Japanese forces around the southwestern Pacific Ocean.

After the war ended, MV Manoora was returned to its owners in 1949 and converted back to civilian use. Unfortunately, during the 1950s, adverse weather and industrial action negatively affected its travelling schedule. Passengers looking for speedy and reliable travel started to turn to airlines, as the price of air travel rapidly came down.

Cruises nevertheless remained popular up to the 1960s. It is estimated that Manoora carried almost 12,000 passengers during the 1956–57 financial year alone. However, post-war inflation, along with wider uptake of private cars and air travel, led to the decline of the Australian cruise ship industry in the late 1950s.

Black and white photograph showing a ship with a dark hull and white upper decks, with cranes on the deck.

Photo of the Manoora during WWII

Australian National Maritime Museum Collection Gift from Patrick Grant

Cream paper (the back of a photograph) with cursive writing in pencil; Manoora

Cruising didn’t disappear, however. Instead, the industry responded with cruises that emphasised comfortable travel with entertainment. Advertising on television, which came to Australia in 1956, formed the basis for a successful marketing strategy.

By the 1960s and 1970s, travellers were drawn toward increasingly luxurious cruise options. In 1977, the American television show The Love Boat increased the popularity and demand for cruises among younger customers.

In recent years, the COVID-19 pandemic had a negative impact on the cruise ship industry. After resuming services post-pandemic, cruising has bounced back as one of the most popular travel options across the globe. While P&O may be departing our shores, cruise ships will no doubt keep visiting Australian waters for decades to come.

Irene Leung

Image made up of many small black and white photos showing different areas of a cruide ship and 1 coloured illustration. The title is "The Adelaide Steamship Company Limited luxurious twin screw motor liner MANOORA" with a lot of small text advertising the features of the ship.

The Adelaide Steamship Company Limited luxurious twin screw motor liner MANOORA