Why a Round-the-World Cruise Ship Ended Its Voyage in Cambodia

A cruise ship that served as a full-time home for its passengers has halted its around-the-world voyage in Cambodia. Its operator says fuel costs have become too high to bear, according to Bloomberg, the Associated Press and the BBC.

The Villa Vie Odyssey is docked at the port of Sihanoukville, and roughly 200 residents were told to leave the vessel. The company says it will spend the next 60 days looking at restructuring options.

What happened to the Odyssey?

Florida-based Villa Vie Residences said in a statement issued Tuesday that it had suspended operations and was working with residents on disembarkation and temporary living arrangements. It said it could no longer absorb the operating losses.

The ship left Belfast in October 2024 on what the company called a continuous voyage around the world. Passengers rented, owned or rent-to-owned cabins on board. Two passengers told the BBC that the company's chief executive informed them at 6 a.m. Tuesday that they had to be off the ship by 2 p.m. that day.

How much did fuel costs rise?

The company said monthly fuel costs per cabin, which had historically averaged about $1,800, have reached an estimated $6,000 to $8,000 in parts of Asia. It said total fuel costs have risen more than 300 percent since the war involving Iran began, according to Bloomberg.

Company founder Mikael Petterson told Bloomberg that monthly operating costs have climbed about 50 percent to $3 million. Marine gas oil, which powers the ship, cost $1339 a metric ton in Singapore, compared with about $700 before the war, Bloomberg reported. The AP said traffic through the Strait of Hormuz has been curtailed, squeezing petroleum-based fuel supplies, especially in Southeast Asia.

Villa Vie said it tried slowing the itinerary and spending more time in port, but that did not offset the increase.

What is happening to the passengers?

Cambodian officials told the AP the ship carried 203 passengers, mostly Americans, and 156 crew members. Bloomberg and the BBC reported about 200 passengers.

Accounts of the company's help differ. Petterson told Bloomberg the company is paying for lodging and local transportation but is not funding passengers' travel out of Cambodia. Blogger Randy Cassingham, who was on the cruise, wrote that the company had done nothing to help and had not provided a list of hotels, the AP reported. Passenger Holly Hennessey told the BBC that she and several shipmates are staying in hotels and waiting.

Passengers Lanette Canen and Johan Bodin told the BBC they had known of the company's financial trouble and had hoped for an investor. "It felt like our dream had been crushed," they said. They plan to travel in Southeast Asia, while Hennessey said she intends to stay in Cambodia in case the ship sails again.

Why does it matter?

For the residents, the suspension means the loss of a home as well as a holiday. Cabin prices for permanent residency ranged widely depending on the report: Bloomberg cited a brochure with prices from just under $130,000 to $440,000, the BBC cited $120,000 to $440,000, and the AP said suites started around $230,000. Monthly fees ran from $2000 to $10,000, according to Bloomberg.

The case also shows how the fuel shock is reaching travel businesses. Bloomberg reported that higher costs for oil and fuels such as diesel and jet fuel have raised travel costs by air, road and sea, and are feeding into inflation. It noted that Royal Caribbean said higher oil costs dampened an otherwise strong quarter.

What happens next?

Villa Vie said it is evaluating restructuring and recapitalization options over the next 60 days, though "no outcome is assured." Petterson told Bloomberg the company is seeking financing to leave the area quickly and is proposing that passengers pay roughly $500 more a month, plus a fuel surcharge, while prices stay high. Passengers had earlier balked at a request to chip in for fuel to leave Cambodia, he said.

Long Dimanche, deputy governor of Preah Sihanouk province, said the ship is expected to refuel and depart on Saturday, the AP reported. The operator has not publicly confirmed a date, and it is unclear where the ship would go.

Around Prague, based on reporting by SMH.com.au, New York Post, BBC News