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Residential cruise around the world ceases operations
USA Today • • business
Key Points:
- Villa Vie Residences has suspended operations of its residential cruise ship, Villa Vie Odyssey, due to sharply rising fuel costs that have made its current business model financially unsustainable.
- The company is coordinating disembarkation for residents in Cambodia and seeking temporary housing while exploring restructuring and recapitalization options.
- Fuel expenses have increased from an average of $1,800 to between $6,000 and $8,000 per cabin monthly in parts of Asia, costs which the company cannot pass on to residents.
- Despite efforts to reduce fuel consumption by spending more time in port, the increased costs remain unmanageable, leading to the suspension of the cruise.
- Villa Vie had planned to expand its fleet after selling over 85% of Odyssey’s residences, but the initial voyage, which began in October 2024 after delays, has now been halted.
