The company acquired three new-built ships between 1999 and 2002, but was forced to declare bankruptcy in 2004.

The company begun operations in 1994 after purchasing MS The Azur from Chandris Cruises.

[6] Festival Cruises acquired their first newbuilt ship in 1999, when MS Mistral was delivered from Chantiers de l'Atlantique in France.

The merger plan was abandoned later that year due to low value of cruise line shares at the time.

[7] Festival Cruises went bankrupt in early 2004, with all the company's ships were laid up and subsequently auctioned to other operators; European Stars and European Vision were sold to MSC Cruises,[2][4] Mistral to a French investor group who chartered her to Iberojet,[2][8] The Azur to Mano Maritime,[9] Bolero to Abou Merhi Lines and Flamenco to Cruise Elysia.