MV Odyssey Luxury Cruise Leaves Hundreds Stranded in Cambodia

More than 200 passengers, mostly Americans, are stranded in a port city in Cambodia after the operator of the MV Odyssey luxury cruise ship ran out of money and halted its around-the-world voyage. Villa Vie Residences, a Florida-based company, announced Tuesday it could no longer afford to keep sailing after fuel costs tied to the war with Iran rose to several times their original level.

Many passengers had paid hundreds of thousands of dollars for permanent cabins aboard the ship. Some sold their homes before moving aboard, expecting to live at sea for years. CEO Mikael Petterson told passengers that morning they had to leave by 2 p.m. that same day, according to the BBC.

How fuel costs forced the shutdown

Before the war with Iran broke out in late February, Villa Vie Residences was paying about $700 per ton for fuel, CBS News reported. That price jumped to between $2,000 and $3,000 per ton afterward. The MV Odyssey burns between 700 and 800 tons of fuel per month.

Per-cabin monthly fuel costs rose from $1,800 to between $6,000 and $8,000 in parts of Asia, according to CBS News. The company's total monthly expenses climbed from $400,000 to $2 million. Villa Vie tried to reduce fuel use by slowing the ship down and spending more time at each port, but those savings were not enough to cover the gap.

The company said it would not pass the full cost increase on to passengers. As CEO Petterson told CBS News: "When you divide it over 300 people on board, it's just backbreaking."

What passengers paid for and what they were promised

The MV Odyssey left Belfast in October 2024 on a continuous voyage planned to last 3.5 years and visit nearly 150 countries, according to its website as cited by the BBC. The nearly 200-meter, or 656-foot, vessel can carry up to 650 passengers. Permanent cabins sold for between $120,000 and $440,000. Cabins were also available to rent from $3,500 a month.

Buyers received a 15-year minimum guarantee of residency when they signed up, CBS News reported. The ship was more than 750 days into its circumnavigation before the suspension was announced. Last year, the company launched a retirement-at-sea program for people wanting to spend their later years living aboard.

Stranded with hours to leave

Passengers were ordered off the ship in Sihanoukville, a port city on Cambodia's southern coast. Passengers Lanette Canen and Johan Bodin told the BBC they were notified by the CEO at 6 a.m. on Tuesday and given until 2 p.m. that same day to leave. The location presented logistical challenges, the couple said, because of its distance from a major international airport.

Sihanoukville was once a quiet beach town but has drawn international attention in recent years as a hub for casinos and online scam operations, the BBC reported. Passengers are now scattered across local hotels, waiting for more information about next steps.

Benjamin Schatz, a retiree who had lived on the ship since early in the voyage, told CBS News he was heartbroken at the sudden end. He said some fellow passengers now find themselves without a home and with few financial resources. Villa Vie said it was working with passengers on departure plans and temporary living arrangements.

The company said it planned to spend the next 60 days on restructuring and seeking new investment, though it acknowledged no outcome was guaranteed.

Bankruptcy filing planned

Petterson told CBS News the plan is to file for Chapter 11 bankruptcy, a legal process that lets a company reorganize its debts while continuing to operate. He said the company had borrowed money and stretched its payroll while searching for a financial partner but found none in time.

The ship had also faced financial trouble before this voyage. Repairs delayed its departure from Belfast for months and cost the company millions of pounds, the BBC reported. A potential investor had toured the ship and reviewed its finances but ultimately did not invest, passengers told the BBC.

What stranded MV Odyssey passengers should know

Passengers caught in a cruise operator collapse have several options worth acting on quickly.

Travel insurance is a key first step. Policies that include supplier default or insolvency coverage may reimburse prepaid costs and emergency expenses such as last-minute flights and hotel stays. Filing a claim as soon as possible and keeping all receipts is essential.

Credit card chargebacks are another avenue. Anyone who paid for a cabin or voyage fees by credit card may be able to dispute those charges with their card issuer. Time limits apply on disputes, so acting quickly is important.

Passengers who purchased permanent cabins should also look into the Chapter 11 bankruptcy process. In that type of case, creditors, including customers who paid for services not yet fully delivered, have the right to file claims against the company. A bankruptcy attorney who handles consumer or maritime cases can help navigate that process. Filing early in the proceeding is advisable.

American passengers who need emergency help while overseas can contact the nearest U.S. Embassy or consulate. The State Department operates a traveler assistance service for Americans abroad who need guidance or emergency support.

Some passengers plan to carry on together

Despite the abrupt end, some passengers say the experience was worthwhile. Canen and Bodin told the BBC they valued their two years aboard and noted that many former passengers planned to settle near each other to keep alive the friendships they formed at sea.

Others are not ready to give up. Passenger Holly Hennessey told the BBC she was staying in Cambodia, holding out hope that the ship might sail again. "Cambodia's not the worst place to hang out," she said.