Villa Vie Odyssey halts continuous world cruise in Cambodia as fuel costs soar

Passengers of the Villa Vie Odyssey were forced off the ship in Cambodia on Tuesday after the operator suspended its continuous global voyage. The suspension follows a sharp rise in fuel prices driven by the conflict in Iran, which made the vessel's operating costs unmanageable. The company is now working to find temporary housing for the residents who live on the ship.

The Odyssey has been sailing continuously for more than two years. It departed Belfast, Northern Ireland, in 2024 after months of delays. The 640-foot vessel markets itself as a residential option for people who want to live on the water and visit remote locations. The company planned for the ship to visit more than 400 destinations over its lifetime.

Villa Vie Residences stated that the conflict, which began in late February, forced the company to change its operations. The ship slowed its speed and spent more time in port to save fuel. The company said these measures were not enough to cover the extra costs. It could no longer carry the financial losses associated with the high fuel prices.

The financial strain is specific to certain regions. In parts of Asia, monthly fuel costs per cabin rose from approximately $1,800 to as high as $8,000. Asia is a major importer of energy from the Middle East. The company said the disruptions in the Strait of Hormuz created unsustainable financial pressure. It noted that passing the full increase to residents was not realistic.

Residents own their cabins and pay monthly fees for services. A five-year residency starts at $59,999, while a permanent cabin costs $119,999. Monthly fees range from $3,299 to $9,500 depending on the suite. These fees cover food, drinks, Wi-Fi, medical visits, and housekeeping. Passengers can also rent cabins for $3,499 per month.

The company is seeking a solution within the next two months. It said it is working toward restructuring and recapitalization, though it warned that no outcome is assured. The operator reached out to residents in Cambodia to inform them of the suspension. Many residents were given less than one day's notice before they had to leave the ship.

Holly Hennessy, a resident who has been aboard since the ship's launch, said the situation had become difficult earlier in the year. Residents were asked to pay a fuel surcharge in May. The ship also reduced cooling to conserve energy, which made the interior uncomfortable. Hennessy described the experience as priceless despite the hardship. She said the arrangement was not sustainable as originally set up.

Sharon Lane, a retiree from California, bought a cabin on the ship last year. She poured her life savings into the purchase and planned to live on the vessel as long as it operated. The company had estimated the ship had 15 years of seafaring left. Lane described the ship as her home. She expressed love for the vessel even as its continuous operation comes to an end.

The Villa Vie Odyssey is one of the first residential ships to operate a continuous round-the-world itinerary. The model allows people to buy a cabin and live on the ship while it travels. The company has not announced when the ship will resume sailing or where it will go next. For now, the vessel is docked in Cambodia while the company sorts out its finances.