Shakeups are in store for the Cunard and Holland America Line fleets, with Cunard losing a ship to P&O Cruises and Holland America gaining a P&O ship, all in 2029.
The recently announced ship swaps come as parent company Carnival Corp. continues with a strategy of introducing just one or two newbuilds per year across its eight brands.
For Holland America, the introduction in 2029 of the Arcadia, which debuted in 2005, will help meet growing demand sooner than a newbuild order could, said president Beth Bodensteiner.
Cunard's loss is being positioned as P&O's gain, and a better fleet fit for the Queen Anne, which was built as a "bold and contemporary expression of Cunard" and has a modern design, said Paul Ludlow, president of both Cunard and P&O Cruises.
"Those qualities give her a natural affinity with the modern P&O Cruises holiday experience," Ludlow said.
And without the Queen Anne, he added, Cunard will have "a more closely unified fleet."
Ludlow said the decision to move the ship "does not change our commitment to Cunard or its future. We will continue to invest in the ships, service, itineraries and guest experiences that make Cunard unique, while building on the strong following enjoyed by each of its three Queens."
Carnival will also invest in a significant refurbishment of the Queen Mary 2 next year, including the addition of 31 staterooms and suites, a redesign of the Grill Suites and updates to public spaces like the spa and gym.
Though currently implementing a more measured newbuild strategy than competitors, Carnival Corp. remains the ocean cruise company with the largest fleet. The company has 92 ships across its eight brands.
"I think they've decided that this is just the right size for them," said Deutsche Bank analyst Chris Woronka.
"There is such a thing as too much supply," he said, adding that with its level of existing supply, an occasional transfer of ships between cruise lines optimizes the capacity Carnival already has.
"Growth isn't always about building something new," said Avoya Travel vice president of partnerships Julie Howard. “Sometimes it's about maximizing the potential of the assets you already have.”
The Arcadia, advisors said, makes sense for the Holland fleet because the ship was originally designed as a Holland America Vista-class ship. A decision was made midconstruction to direct it to another brand, with the company first leaning toward Cunard but later landing on P&O.
Bodensteiner called it "another perfectly sized ship that is a natural fit for our fleet."
Its introduction also coincides with a six-ship, $500 million renovation Holland America launched for its Vista- and Signature-class ships to add new venues and staterooms. The Arcadia will now be included in the project.
Welcome growth for HAL
While a newbuild can garner more excitement from clients, and often more publicity, growth of any kind is a boost for Holland America, said Gary Smith, CEO of TravelPerks, a Dream Vacations franchise in Eugene, Ore., asserting that it breathes life into the brand and allows for more deployment opportunities.
Investments in culinary programming and onboard service have righted issues that Smith said he and his clients experienced on Holland America after the pandemic.
"They seem to be really doing a fantastic job, and so adding capacity makes sense," he said.
The Queen Anne will go from Cunard to P&O Cruises. Credit: Cunard
Queen Anne's brief reign
Some advisors expressed surprise that Carnival is moving the Queen Anne just two years after it became Cunard's first newbuild since 2010.
But for multiple luxury agencies, where Cunard sales have stalled, it wasn't as unexpected.
The brand and its onboard culture of traditional English luxury is a niche product that doesn't suit most of Travel-Perks' luxury clientele, Smith said.
Carlos Edery, CEO of Luxury Cruise Connections in Miami, similarly said he isn't seeing a growth in interest in Cunard, and that while his sales grew this year for most brands, Cunard sales are even compared with last year.
Smith and Edery suspect the decision relates to the brand's performance in recent years. While other cruise lines are embracing a more relaxed culture of modern luxury, the much more traditional Cunard experience is only for a select luxury clientele that also happens to be aging, Edery said.
That's not the case for Kareem George, owner of luxury agency Culture Traveler, who said his clientele is drawn to the "history and romance" of a more traditional cruise experience. As that experience is growing increasingly rare, he has seen it spark greater curiosity. His sales of the brand have grown in the last several years.
"I hope to see Cunard continue to embrace what makes it exceptional rather than attempting to appeal to a broader customer base solely for the sake of growth," he said. "There is a great opportunity to become even more distinctive rather than simply larger."
Still, Kareem said he would love to see Cunard add a new class of ships, one "that combines the legacy and elegance of traditional ocean travel with contemporary expectations for spacious accommodations, exceptional cuisine, wellness and personalized service."