Fuel Costs Force Residential Cruise To Halt Operations In Cambodia

The Odyssey, a 642-foot residential cruise ship, ceased operations in Cambodia on Tuesday after fuel costs rose sharply. The vessel, which departed Belfast, Northern Ireland, three years ago, is currently docked in the port city of Sihanoukville.

Villa Vie Residences, the Florida-based operator, stated in a release that it is identifying temporary housing for those currently aboard. A Cambodian official reported that 203 passengers and 156 crew members were on the ship as of Wednesday. Some passengers have already departed by air, while others remain in the port city. The ship is scheduled to refuel before leaving Cambodia on Saturday.

Mikael Petterson, an executive at Villa Vie Residences, declined to provide further details in an email to NBC News. However, in a statement earlier this year announcing the company's second residential cruise, Petterson noted that The Odyssey was 85 percent sold. The company’s Tuesday release acknowledged that while it took measures to reduce fuel consumption, those steps were insufficient to offset the cost increases. Global oil prices have surged since the war with Iran began earlier this year, disrupting global fuel flows and reaching their highest levels in months.

Resident Randy Cassingham learned his journey was over after a company official posted a note on the ship's message board shortly after 7 a.m. on Monday. The message indicated that The Odyssey would enter a temporary mooring, effectively ending its use, and required all residents to disembark before 2 p.m. Cassingham, who runs ResidentialCruising.com, described the situation as a cascade of problems.

Pamela Reckamp, 59, who rented a cabin with her husband and disembarked this month, said she was not surprised by the halt. She recalled a meeting in early September where a company official asked cabin owners to help raise $1 million to leave Ha Long Bay, Vietnam. Reckamp quoted the official as saying that without the funds, the ship had four days of operation left before the lights and air conditioning would go off. At a subsequent meeting, another resident who purchased a cabin in August expressed shock that she had not been informed of the financial difficulties, stating that she had sold her house and car to buy her home on the ship.

The company’s business model has faced legal scrutiny. A lawsuit filed last year by a company that purchased a cabin for $469,000 accused Villa Vie Residences of fraud, alleging it misrepresented its financial stability. The plaintiffs described the model as precarious and are seeking a jury trial and damages exceeding $100,000. Villa Vie Residences denied the accusations, and the case remains pending. The company advertised cabins starting at $119,000 in 2024. In July, Petterson stated the company aimed to prove residential cruising was sustainable.