Villa Vie Residences, the company behind a residential cruise around the world, suspended operations this week, citing high fuel costs.
The company is coordinating disembarkation for residents of its Villa Vie Odyssey ship in Cambodia, and is working to find temporary living arrangements while it assesses options for restructuring and recapitalization, according to a news release.
"Fuel costs have risen sharply in the regions where the company has been operating," Villa Vie said in the release. "On an equivalent per-cabin basis, monthly fuel expense that historically averaged approximately $1,800 has recently reached an estimated $6,000 to $8,000 in parts of Asia. 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."
The company added that recent measures aimed at cutting back on fuel usage, such as spending additional time in port, had not sufficiently offset the increased expenses. Villa Vie did not immediately respond to a request for comment on whether residents would receive refunds or other compensation.
The news comes after the company announced plans in July to expand its fleet with a second residential cruise ship, noting at the time that more than 85% of Odyssey’s available residences had been sold.
Villa Vie Odyssey began a planned three-and-a-half-year cruise – aiming to circumnavigate the globe every three-and-a-half years – in October 2024 following multiple delays. The voyage was originally scheduled to start in May of that year, but faced setbacks leading up to departure.
Mike Petterson, Villa Vie Residences' founder, told USA TODAY in August 2024 that the company had "been quite humbled by the scale of what it takes to reactivate a 30-year-old vessel from a four-year layup. After the lapse of all certifications of class we are now considered (a) new ship where all machinery and equipment must work as if new." Odyssey formerly sailed as MS Braemar for Fred Olsen Cruise Lines before Villa Vie bought it in 2023.
Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.
This article originally appeared on USA TODAY: Residential cruise company suspends operations, citing high fuel costs
