Ahead of India visit, luxury cruise passengers asked to ‘abandon ship’

An ‘abandon ship’ call by a luxury cruise has forced several people out of their ‘permanent homes’ aboard the ship.

Over 200 passengers on a luxury cruise are now stranded in Cambodia — thanks to empty fuel tanks of the ship. A luxury cruise ship, Villa Vie Odyssey, on a years-long journey around the world was forced to suspend its operations in Cambodia after its operator said soaring fuel costs had made the voyage financially unsustainable. Villa Vie Residences, the US-based company behind the cruise, said it was helping passengers arrange disembarkation and temporary accommodation while it explored a financial restructuring, reported BBC.

Around 200 passengers were reportedly aboard when they were told to leave the ship in Sihanoukville. The Cambodian port city, once a quiet beach destination, has become known in recent years for Chinese casinos and scam centres. As per Deputy Governor of Preah Sihanouk Province, Cambodia, Long Dimanche there were 203 passengers and 156 ​crew members on the ship.

Some of these passengers were, in fact, sold the cabins as ‘permanent homes’ and had planned to stay on for decades.

A passenger exits the MV Odyssey on Thursday (Photo: AP)

The nearly 200-metre vessel, which can accommodate up to 650 passengers, left Belfast on October 1, 2024, on a continuous world voyage. The itinerary was intended to cover almost 150 countries over three-and-a-half years.

According to the ship’s itinerary, updated on October 20, the Villa Vie Odyssey was scheduled next to visit Vietnam, Singapore, Malaysia, Thailand, and then India. It was expected to dock in Kolkata on November 29, and then in Visakhapatnam and  Chennai on December 4 and 8, respectively, before moving on to Sri Lanka. The plan was to return to India again on December 24, docking in Mangalore, Mumbai, Goa, and Kochi.

Fuel costs climb sharply

The Odyssey’s “villa suites” can cost around $440,000 while the charge for an inside villa could cost nearly $120,000, reported news agency Reuters. But the bookings grossly fell short of the company’s full-house expectations. The cruise operator said that monthly fuel expenses per cabin in parts of Asia had jumped from $1,800 to as much as $8,000 (£6,000), which had hit its operations.

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Global fuel prices have surged since the Iran war began earlier this year.

The company had attempted to cut consumption by slowing the itinerary and extending port stays. However, it said those changes could not absorb the exceptional rise in costs, while passing the entire increase on to residents was unrealistic. “The company cannot simply pass increases of that scale on to residents, and the resulting shortfall has placed ​its current operating model under unsustainable financial pressure,” a statement by the company read.

A room aboard the luxury cruise ship MV Odyssey (Photo: Villa Vie Residences)

As per New York Times, an attempt to impose a monthly fuel surcharge of $1500 on the existing residents failed as 70% refused to pay.

Villa Vie Residences said it would spend the next 60 days pursuing restructuring and recapitalisation, cautioning that the process had no guaranteed outcome.

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The suspension was announced on Tuesday, more than 750 days into the ship’s journey. Its original departure had also been disrupted by repairs, which kept passengers in Belfast for months and cost the company millions.

New York Times quoted Villa Vie’s founder Mikael Petterson as saying that the company may be forced to sell the ship if no investor steps in to save it.

Passengers given hours to leave

Passengers Lanette Canen and Johan Bodin told the BBC that the company’s chief executive informed them at 6am on Tuesday that they needed to disembark by 2 PM (local time). The couple said residents had been aware of the operator’s financial problems. A prospective investor had visited the vessel to conduct due diligence, but the investment did not materialise.

Although they had recognised the warning signs, Canen and Bodin said they continued to hope another investor would intervene. The eventual announcement left them shocked and heartbroken, with passengers comforting one another through hugs and tears.

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They also described Sihanoukville as a difficult place to leave the ship because of its distance from a major international airport.

A cooking class in progress aboard the luxury cruise ship MV Odyssey (Photo: Villa Vie Residences)

Fellow passenger Holly Hennessey told the BBC that residents had previously been asked to consider a fuel surcharge and that the itinerary had already been substantially reduced. Some had chosen to leave and continue travelling overland.

Hennessey, who is now in Cambodia with her cat, Captain, said passengers were staying in different hotels while awaiting further information. Several shipmates were in the same hotel as her.

Another passenger Randy Cassingham blamed the situation on the management. “It ​was a cascade of problems piling up on one another, from the business model ​to mistakes by ⁠management to the mentioned crisis in fuel cost and availability, and more,” he said.

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Cabins sold as permanent homes at sea

According to the company’s website, the Odyssey offered passengers several bars and restaurants, a pool deck and a pickleball court.

Permanent cabin residencies were priced between $120,000 and $440,000, with rentals starting at $3,500 a month. Many planned to spend decades on the ship as per business insider.

Last year, the operator introduced a lifetime residence programme aimed at people seeking to retire at sea.

The company also attracted attention in 2024 when it announced a four-year “Skip Forward” package days after Donald Trump won a second term as US President. Speaking to Fox Business at the time, its chief executive pitched the offer to people who had said they would leave the country depending on the election result.

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Despite the abrupt ending, passengers Canen and Bodin said their two years aboard had been worthwhile because of the destinations, adventures and friendships they experienced.

They said many residents were already arranging to live near one another on land, preserving the community formed during the voyage. The couple intend to remain in Sihanoukville for a few days before exploring other parts of Southeast Asia as they decide what comes next.

Hennessey, meanwhile, plans to stay in Cambodia in the hope that the Odyssey resumes sailing. She said she would not give up until the company confirmed the voyage was permanently over, adding that she could not recreate the lifestyle elsewhere and had little enthusiasm for returning home.