Shipping giant P&O has revealed that bookings at its cruise division are steaming ahead.

P&O said its Princess Cruises business, which includes nine ships operated from the U.S. and the Australian-based P&O Holidays business, had seen a 12 per cent jump in capacity and bookings for trips this year compared with a year ago.

The increase in demand for holiday cruises comes after a 20 per cent jump in occupancy levels and an

18 per cent rise in capacity during 1999.

Bookings were also going well for the P&O Cruises UK division, which includes three British-based ships and the Swan Hellenic Minerva liner, with capacity expected to rise by 37 per cent this year.

The UK operation had enjoyed a successful year in 1999 with occupancy levels ahead of 1998.

The group's recently acquired German business, Aida Cruises, was also continuing to grow strongly with bookings and yields ahead of this time last year.

P&O said it was continuing to benefit in particular from strong demand for cruises in the USA.

"Indications so far are that 2000 looks set to be another good year for Princess," a P&O spokesman said.

He added that capacity would increase by 12 per cent, excluding Australia.

"For the first half-year, well over 70 per cent of capacity is booked at yields that are consistent with this time last year."

The company also reported healthy bookings for its new Ocean Princess and Aurora cruise ships.

The Ocean Princess will be a sister ship to Sun, Dawn and Sea Princess, and sets sail on her maiden cruise next month. The Aurora, a big sister to the Oriana, will depart on her first cruise in May.

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