A luxury cruise ship on a years-long trip around the world has suspended operations in Cambodia after a sharp increase in fuel costs made its business model difficult to sustain, leaving around 200 passengers facing uncertainty over their living arrangements, as reported by BBC News.
The US-based operator of Villa Vie Odyssey said it was working with passengers to coordinate their disembarkation and arrange temporary accommodation.
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The company also announced plans to spend the next 60 days on restructuring and recapitalisation, while warning that no outcome was assured.
Villa Vie Residences said its monthly fuel expenses per cabin, which had historically averaged around $1,800, had risen to as much as $8,000 in parts of Asia.
The company attributed the surge to the Iran war, which has pushed up fuel costs in the regions where the vessel has been operating.
The operator said it had taken steps to reduce fuel consumption, including slowing the ship's itinerary and spending more time in port. However, these measures were not enough to offset the increase in expenses.
“Passing the full increase on to residents is not a realistic solution,” the company said.
Passengers Told To Leave Cruise Ship Within Hours
The suspension has disrupted the lives of passengers who had signed up for an extended voyage around the world, with some having committed substantial sums to living aboard the ship.
Passengers Lanette Canen and Johan Bodin told the BBC that they were informed by Villa Vie Residences' chief executive at 6 a.m. on Tuesday that they had to leave the vessel by 2 p.m. the same day.
The couple said passengers had been aware of the company's financial difficulties for some time. A potential investor had previously come aboard the ship to conduct due diligence, but the proposed investment did not materialise.
Another passenger, Holly Hennessey, said residents had earlier been asked to consider paying a fuel surcharge as global prices rose. She also said the ship's itinerary had been “severely curtailed”.
The company has not guaranteed when or whether the voyage will resume. Its immediate priority is to support residents, crew members and employees while it explores options to address its financial difficulties.
How Much Does It Cost To Live On Villa Vie Odyssey?
Villa Vie Odyssey operates on a residential cruise model, allowing customers to purchase permanent residency in a cabin or rent accommodation while travelling around the world.
According to the company's website, cited by BBC News, permanent residency options ranged from $120,000 to $440,000, while cabins were also available to rent from $3,500 a month.
The vessel offers facilities including several bars and restaurants, a pool deck and a pickleball court. Last year, Villa Vie Residences also launched a lifetime residence programme aimed at people looking to spend their retirement years at sea.
However, the sharp increase in fuel expenses has put pressure on the model. The operator said passing the entire increase on to residents was not a realistic option, leaving it unable to sustain the resulting operating losses.
Villa Vie Odyssey's World Voyage Faced Delays Before Departure
The nearly 200-metre-long vessel departed Belfast in October 2024 for what was billed as a continuous voyage around the world. The journey was expected to last three-and-a-half years and cover nearly 150 countries.
Its departure had already been delayed as the ship underwent repairs, leaving passengers waiting in Belfast for months and costing the company millions of pounds.
By the time the suspension was announced on Tuesday, the ship had been more than 750 days into its planned circumnavigation.
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The vessel can accommodate up to 650 passengers, although the number on board at the time of the suspension was not officially specified by the company. Reports put the number of passengers asked to disembark at around 200.
Villa Vie Residences said it would use the next 60 days to pursue restructuring and recapitalisation options.
However, with fuel costs remaining a major challenge and no outcome assured, passengers are left waiting for clarity on the future of the voyage and their long-term living arrangements.
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