Villa Vie Odyssey suspends operations and disembarks residents in Cambodia due to rising fuel costs
The residential cruise line halted its service after fuel expenses per cabin more than tripled, ordering passengers to leave the ship in Cambodia while it seeks restructuring.
Villa Vie Odyssey announced on Tuesday that it is suspending operations after fuel costs per cabin in parts of Asia more than tripled, prompting the company to order residents to disembark in Cambodia by 2 p.m.
CEO Kathy Villaba told residents that the line was "unable to secure the fuel necessary to continue operations" and described the suspension as a "temporary layup."
The company attributed the surge in expenses to the conflict affecting oil shipments through the Strait of Hormuz, noting that the war in Iran has disrupted global fuel supplies.
Villa Vie said it had taken steps to reduce consumption, such as slowing the itinerary and extending port stays, but those measures were insufficient to offset the increased fuel prices.
Permanent cabins on the ship were sold for $120,000 to $440,000, offering a long-term cruise lifestyle. The company said it does not intend to pass the higher fuel costs to residents and is focusing on supporting passengers, crew and employees while it works on restructuring and recapitalization over the next 60 days.
Villa Vie is assisting residents with disembarkation and temporary housing arrangements, though it did not disclose how many people are affected.