Around 200 passengers who paid to live on a cruise ship while travelling the world have been abruptly left in a Cambodian port after the company ran out of money.
US-based operator Villa Vie Residences, which markets its residency programs as luxury alternatives to current retirement options, announced it had suspended operations after two and a half years of continuous travel.
In a statement on Tuesday, local time, Villa Vie blamed the "extraordinary" fuel costs following the Iran war for halting operations.
Passengers were given just seven hours to pack their bags and leave during a scheduled stop in the Cambodian port of Sihanoukville, according to Long Dimanche, deputy governor of Preah Sihanouk province.
He said in a statement 203 guests and 156 crew had arrived aboard the Bahamas-flagged ship from Thailand on October 23 and had been due to go on to Vietnam.
"The sudden order to disembark has left many retirees and remote workers homeless thousands of miles from their home countries," he said.
[...] Villa Vie said in its statement that per-cabin monthly fuel expenses had gone from an average of $1,800 to 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," it said.
I don’t buy it. Any reputable cruise line would buy their fuel stock years in advance via futures. I’m 50% sure the company ponzied the money and left everyone to dry
>In its November/December 2024 edition, Sail Away Magazine questioned Villa Vie’s preparedness and ability to deliver its ambitious long-term cruising programme. The editorial highlighted reported problems involving hot water, plumbing, air conditioning, sewage smells and itinerary changes.
>
>At the time, we described the situation as a slow-motion shipwreck and questioned how long the company could continue operating amid mounting difficulties.
>
>Those earlier technical and operational complaints have not been established as causes of the present financial crisis. However, the latest suspension brings renewed attention to concerns raised during the company’s first months of operation.
>Earlier this year, the company announced plans for another residential vessel, Villa Vie Legacy, with an anticipated entry into service in 2029. The wider residential cruising business has also promoted Avora Residences, a luxury concept involving a proposed vessel known as Project Lumina. The suspension of Odyssey now casts uncertainty over those ambitions.
>
>There is no established evidence that funds paid by Odyssey residents were improperly diverted into other projects. However, the timing of the expansion announcements, alongside reported emergency fundraising efforts, raises legitimate questions about how the proposed vessels were being financed.
Thats not true. Only a few do that and not even all their fuel. It is very expensive up front and requires liquid capitol. Carnival does not do this for example.
Passengers have known this was coming with fuel surcharges, chugging along at 6 knots, staying in port a ton, etc. Hong Kong let them leave bc they didn't want an insolvent ship stuck at their port.
The dry dock next year would have a bankrupted them regardless. The passengers will lose all their money.
No way fuel costs would tank this business unless they didn’t know WTF they were doing and operating on really slim margins. The lesson is: don’t buy if you can rent.
> Villa Vie said in its statement that per-cabin monthly fuel expenses had gone from an average of $1,800 to an estimated $6,000 to $8,000 in parts of Asia.
Of course the business now teetering on bankruptcy wouldn’t lie and blame their unraveling on things “beyond their control” which they have likely included in their contracts with those who purchased passage. /s
No way fuel costs would tank this business? So if the fuel costs per cabin went from $1000 a month to $10000 a month quickly it would not tank their business if they knew what they were doing?
They literally said on the article it went up from $1,800 per month average per cabin to $6k and $8k in some parts of Asia. Any reasonable person could see how that would blow their budgets.
It’s called a hypothetical. Diesel has about doubled in a very short time, apparently to you though the cost of fuel tanking the business is impossible, and operating on extremely thin margins, so I made the margin bigger to illustrate it’s beyond obviously not impossible that fuel costs could tank a business like this despite the “ no way fuel cost would take this business” obviously you agree they would, it’s just a question of how high until they do.
Only people who are used to everything going their way and have enjoyed endless government support their entire lives could possibly think this was a good idea.
I expect bailout demands and gofundmes any second now.
[OP] marketrent | 4 hours ago
Excerpts from article by Eden Regan with AFP:
Around 200 passengers who paid to live on a cruise ship while travelling the world have been abruptly left in a Cambodian port after the company ran out of money.
US-based operator Villa Vie Residences, which markets its residency programs as luxury alternatives to current retirement options, announced it had suspended operations after two and a half years of continuous travel.
In a statement on Tuesday, local time, Villa Vie blamed the "extraordinary" fuel costs following the Iran war for halting operations.
Passengers were given just seven hours to pack their bags and leave during a scheduled stop in the Cambodian port of Sihanoukville, according to Long Dimanche, deputy governor of Preah Sihanouk province.
He said in a statement 203 guests and 156 crew had arrived aboard the Bahamas-flagged ship from Thailand on October 23 and had been due to go on to Vietnam.
"The sudden order to disembark has left many retirees and remote workers homeless thousands of miles from their home countries," he said.
[...] Villa Vie said in its statement that per-cabin monthly fuel expenses had gone from an average of $1,800 to 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," it said.
Nishbot11 | 4 hours ago
I don’t buy it. Any reputable cruise line would buy their fuel stock years in advance via futures. I’m 50% sure the company ponzied the money and left everyone to dry
[OP] marketrent | 4 hours ago
https://sailawaymagazine.com/villa-vie-odyssey-the-cruise-dream-that-ran-out-of-money:
>In its November/December 2024 edition, Sail Away Magazine questioned Villa Vie’s preparedness and ability to deliver its ambitious long-term cruising programme. The editorial highlighted reported problems involving hot water, plumbing, air conditioning, sewage smells and itinerary changes. > >At the time, we described the situation as a slow-motion shipwreck and questioned how long the company could continue operating amid mounting difficulties. > >Those earlier technical and operational complaints have not been established as causes of the present financial crisis. However, the latest suspension brings renewed attention to concerns raised during the company’s first months of operation.
>Earlier this year, the company announced plans for another residential vessel, Villa Vie Legacy, with an anticipated entry into service in 2029. The wider residential cruising business has also promoted Avora Residences, a luxury concept involving a proposed vessel known as Project Lumina. The suspension of Odyssey now casts uncertainty over those ambitions. > >There is no established evidence that funds paid by Odyssey residents were improperly diverted into other projects. However, the timing of the expansion announcements, alongside reported emergency fundraising efforts, raises legitimate questions about how the proposed vessels were being financed.
KyOatey | 3 hours ago
It's not exactly a standard cruise line. The people own their units then pony up to cover expenses on a regular basis.
Vegetable-Client-147 | 3 hours ago
Thats not true. Only a few do that and not even all their fuel. It is very expensive up front and requires liquid capitol. Carnival does not do this for example.
Sdwingnut | 2 hours ago
Liquid capital such as.... fuel? :)
Thoughtulism | an hour ago
Ironically large amounts of oil a not very liquid (asset).
Just_Candle_315 | 3 hours ago
Sounds like boomers mismanaging financial decisions AGAIN probably what millennials to bail them out of this one too
MCB1317 | 3 hours ago
For once, I don't see how they get bailed out on the backs of younger taxpayers.
Prior-Habit-6523 | 4 hours ago
Yea that sounds like it.
realjones888 | an hour ago
Passengers have known this was coming with fuel surcharges, chugging along at 6 knots, staying in port a ton, etc. Hong Kong let them leave bc they didn't want an insolvent ship stuck at their port.
The dry dock next year would have a bankrupted them regardless. The passengers will lose all their money.
BoysenberryDry999 | 3 hours ago
No way fuel costs would tank this business unless they didn’t know WTF they were doing and operating on really slim margins. The lesson is: don’t buy if you can rent.
ThaiTum | 2 hours ago
> Villa Vie said in its statement that per-cabin monthly fuel expenses had gone from an average of $1,800 to an estimated $6,000 to $8,000 in parts of Asia.
BoysenberryDry999 | an hour ago
Of course the business now teetering on bankruptcy wouldn’t lie and blame their unraveling on things “beyond their control” which they have likely included in their contracts with those who purchased passage. /s
BestBettor | an hour ago
Let’s blame it on everything besides their main cost which is diesel
BestBettor | 2 hours ago
No way fuel costs would tank this business? So if the fuel costs per cabin went from $1000 a month to $10000 a month quickly it would not tank their business if they knew what they were doing?
ThaiTum | an hour ago
They literally said on the article it went up from $1,800 per month average per cabin to $6k and $8k in some parts of Asia. Any reasonable person could see how that would blow their budgets.
Hexagonalshits | 46 minutes ago
I feel like I really need a They Did the Math style post calculating fuel use per ship/ per room
Edit according to this 7 percent of Total revenue per passenger* was used for fuel
https://www.cruzely.com/wp-content/uploads/royal-caribbean-financials-per-passenger-1.jpg
BoysenberryDry999 | 2 hours ago
Fuel went up 10X?
BestBettor | an hour ago
It’s called a hypothetical. Diesel has about doubled in a very short time, apparently to you though the cost of fuel tanking the business is impossible, and operating on extremely thin margins, so I made the margin bigger to illustrate it’s beyond obviously not impossible that fuel costs could tank a business like this despite the “ no way fuel cost would take this business” obviously you agree they would, it’s just a question of how high until they do.
ImJustHereToCustomiz | 40 minutes ago
It’s been a mess since it started.
https://www.hyperfixedpod.com/listen/hyperfixed/sailing-into-the-unknown-with-joe-rhodes
Initial departure delayed by months. Threats for passengers to not speak ill of issues.
I’m impressed it lasted this long.
MCB1317 | 3 hours ago
Only people who are used to everything going their way and have enjoyed endless government support their entire lives could possibly think this was a good idea.
I expect bailout demands and gofundmes any second now.