A residential cruise ship that had been sailing around the world for two years came to an abrupt stop on Tuesday after its operators said they had run out of money for fuel, leaving passengers stranded in Cambodia. Villa Vie Residences, a Florida-based start-up, gave the 200 passengers just hours’ notice to disembark from its ship, Odyssey, while it was docked in the Cambodian port city of Sihanoukville. The company said it had suspended operations while it worked to address “extraary increases in fuel costs and evaluate restructuring and recapitalization alternatives.”
Villa Vie was one of a number of companies that marketed endless, around-the-world cruises, on which passengers could live less expensively than on land. Its priciest options, which provided ownership of a suite and permanent residency on the Odyssey for the life span of the ship, cost from $119,999 to $439,999, plus fixed monthly fees of $3,500 to $11,000; a five-year ownership plan started at $49,999 plus monthly fees. There were also flexible and short-term rental rates. But few of the companies have been able to deliver on their promises.
Global fuel prices have surged since the outbreak of the war in Iran in late February, which throttled shipping through the Strait of Hormuz. Villa Vie said its monthly fuel expense per cabin in parts of Asia had risen to $6,000 to $8,000, from $1,800. “We cannot simply pass increases of that scale on to residents,” the company said. The cruise’s budget was based on the expectation that the ship would be fully booked, said Villa Vie’s founder, Mikael Petterson, who was also involved in the canceled Miray venture.
Most residents have arranged their own accommodation in nearby hotels, but Villa Vie said on Wednesday that it would help with onward travel and that it was working to charter a flight back to the U.S.
Source: New York Times Business · Summarized by HeadlinesBriefing