'Must make immediate, creative decisions': What CEO of 'never-ending' cruise that stranded 200 people said in his letter
Days after more than 200 passengers were stranded in Cambodia on MV Odyssey, a residential cruise ship that has been sailing around the world for more than two years, Mikael Petterson, the founder of its operator, Villa Vie Residences, said he “feels awful,” adding that he sees himself as the “villain in the story.”
Petterson made these remarks while speaking to Business Insider on Wednesday (local time). He said he is doing his best to right the ship, adding that the vessel's evicted residents are “counting on me to make the decisions here, and there's nothing else I'm focused on.”
After two turbulent years at sea, Petterson said he had drawn up a plan last week to stabilize the ship’s finances. He was reportedly in talks with a potential investor and expected a fresh infusion of cash. However, after the deal fell through, he is now considering bankruptcy, with the company having run out of options.
While its operator marketed MV Odyssey as a never-ending cruise and a journey across the seven continents, reality was different: unexpected mechanical delays delayed the ship's launch by months, and some passengers were unhappy with their cabins. However, Petterson said the final blow was the Iran war, which sent fuel prices soaring.
He noted that the price surge marked the beginning of a “cascading effect” that led Villa Vie to shut Odyssey down on Tuesday, with the operator telling passengers living aboard to leave the ship within hours.
Petterson said, “Nobody that's tried residential cruising has succeeded, and we've gone further than anyone else,” adding, “But I think we would have been absolutely fine — and we would have seen this through — if there was no Iran war.”
Earlier in August, the operator also sent an "urgent" letter to residents of the luxury cruise ship, saying the company needed to make "immediate and creative operational decisions to preserve the voyage." It added, “When the fuel contribution was requested several months ago, participation was not universal. The contributions received helped some, but they covered only part of the extraordinary increase in fuel costs. Since then, the company has exhausted its available reserves covering the remaining shortfall and keeping Odyssey moving.”
More than 200 passengers, most of them Americans, were left stranded in Cambodia after Villa Vie Residences, operator of a luxury residential cruise ship on a round-the-world voyage, reportedly ran out of funds amid soaring fuel costs.
According to reports, the luxury cruise ship set sail two years ago on a voyage across all seven continents, marketed as a blend of long-term living at sea and global travel. With suite prices for the vessel’s lifetime starting at around $230,000, its operator had offered passengers the chance to “make Odyssey your permanent home.”
However, it is currently docked at the Cambodian port of Sihanoukville on the Gulf of Thailand, with no confirmed departure date. Citing Cambodian officials, AP reported that the luxury cruise had a 650-passenger capacity and had been carrying some 203 passengers, most of whom were Americans, along with 156 crew members.
The ship was forced to halt operations as rising fuel prices pushed its monthly fuel cost per cabin from a historical average of $1,800 to an estimated $6,000-$8,000 in parts of Asia amid the US-Iran war, its Florida-based operator said.
The company said it planned to reduce fuel consumption by slowing the itinerary and spending more time in port, but was unsuccessful in offsetting the surging costs.
In a statement issued Tuesday, it said, “We have been unable to continue carrying the resulting operating losses,” and added, “Passing the full increase on to residents is not a realistic solution. Our focus now is on supporting residents, crew, and employees.”
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
Get Latest real-time updates
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.