Who Will Win The Space Tourism Race?

For many the idea of travelling to Space may seem like a distant dream, but the reality is much closer than you can imagine. Nearly all of the major Space transportation companies have plans to put humans into Space in the next 24 to 48 months and the range of experiences and price points now varies significantly making some of these options much more accessible to wider audiences.

The growing popularity and fascination with Space has also led to many new Space themed attractions and resorts being developed on Earth over the past decade and many new attractions and experiences are currently in the pipeline. July 2019 marked the 50th anniversary of the first person on the moon, and since then we have seen a high level of new venture formation and related government-sponsored programs. But those that are currently closest to winning this race will see the culmination of two decades of development work become reality very soon.

The global Space industry is expected to generate revenue of $1.1 trillion+ by 2040. Analysts predict that Space Tourism will generate $3 billion per annum by 2029 and is expected to grow in double digits (16.6% CAGR) in the years ahead (UBS 2019).

To date, Space tourism has been the most profitable Space service in history. The first group of Space tourists spent upwards of $45 million to visit the International Space Station (ISS) in earth orbit. To date, only the Russian Space Agency has facilitated Space tourism (seven tourists and eight flights to date) at a reported cost of more than $20 million per passenger, which took place between 2001 and 2009. From 2020, two private astronauts a year will be able to stay on board the ISS for up to 30 days each, but they will need to use a commercial Spacecraft, such as SpaceX’s vessels to get there. NASA has said it hopes the ISS will be just one of many “commercial and free-flying habitable destinations in low-Earth orbit”.

Many of the new Space Tourism experiences being developed are at much more accessible price points that will cater to wider High-Net-Worth audiences and mass tourism audiences. Many of these are also environmentally friendly and leave no carbon footprint. This is critical if we are to be able to scale the volume of tourists that will be able to enjoy these unique attractions.

According to research undertaking by Cowen financial services, there is a high-level of interest among high-net-worth individuals to fly to Space at a ticket price of $250,000 or above. 35% of individuals with High-Net-Worth of $1m+ are willing to pay $250,000 or more. Therefore, 2.4m passengers at a ticket price of $250,000 would yield $500 billion. And 78% of those who are interested in flying to Space responded that they would like to travel more than once. The survey is based on consumers in the U.S. and may not reflect the full extent of global consumer demand (Cowen, Aug 2020).

So, let’s explore who the main players are in this exciting new segment.

Space Tourism Players

Commercial Space companies are investing aggressively across the Space opportunity. There are several different experiences currently in testing that will bring passengers to a different range of altitudes. the Edge of Space, Suborbital travel and Orbital trips including accommodation in orbit.

Source: Actual picture of Bloon Space Balloon Prototype in Near Space: Zero 2 Infinity

High Altitude Space Balloons

Until now, the chance to view our planet from the Edge of Space has been beyond the reach of the vast majority of the population. But unprecedented innovations in balloon technology has enabled a number of companies to create an unforgettable experience that will enable passengers to fly to Near Space for a leisurely cruise which will offer spectacular views of the curvature of the Earth and the Stars.

Three prominent players are venturing the commercial Space balloon market – Zero 2 Infinity, Zephalto and Space Perspective.

Zero 2 Infinity is ahead in terms of operationalizing commercial Space balloon flights with more milestones achieved by Bloon, which is their patented Space capsule. Zero 2 Infinity has a substantial first-mover advantage underpinned by 10+ years of experience, including Bloon prototype testing and their vertically integrated aerospace development capabilities.

Bloon plans to fly customers as early as 2022 up to 36km on a 5-hour journey to Near Space. The spacious capsule can accommodate 4 passengers and two pilots and employs environmentally friendly and safe helium to become lighter than air to enable it to reach the Edge of Space. Passengers will spend 2 hours cruising above 99% of the Earth’s atmosphere and be able to experience the curvature of the earth and the blackness of Space from within a pressurized capsule.

The main advantage of this type of Space tourism experience is that there is no carbon footprint, the view is enjoyed for hours, and it is also open to a much wider audience as the ascent is gradual and no specialist training is required.

 Source: 3D Rendering of Pressurized Capsule, Space Perspective

Bloon by Zero 2 Infinity plans to fly customers as early as 2022, with test flights already concluded. Zephalto and Space perspectives hope to fly tourists by 2024, with Space Perspectives first test flight expected to take place in 2021. Prices for both experiences are expected to be in the region of $125,000. 

Suborbital Travel

There are a number of commercial Space ventures planned to open up suborbital travel. The most well-know are Virgin Galactic and Blue Origin.

Virgin Galactic has two main missions – commercializing Space travel and revolutionizing commercial flight by offering high-speed point-to-point travel, which will significantly shorten long-haul flight times.

Source: New Shepard suborbital capsule following a test flight, Blue Origin

The Virgin Galactic Space travel experience consists of four days, which includes 3 days of pre-flight training and the Spaceflight on the fourth day. The Spaceflight will offer passengers a 90-minute journey up to an altitude of 80km, where they will get to experience the view of near Space for 5-6 minutes. Their Spaceflight operations will be based at Spaceport America in New Mexico and they already have deposits from 600 potential Space travelers from 60 countries, which amounts to $80 million in deposits (Cowen, Aug 2020).

Blue Origin, in contrast, is currently planning a shorter overall experience, but a longer duration in Near Space (up to 8 minutes), which includes one day of essentials training and an 11-minute flight without a pilot. The flight will offer customers an experience similar to that of an astronaut, which will include a vertical launch and parachute capsule landing. The reusable suborbital rocket system is designed to take astronauts and research payloads past the Kármán line – the internationally recognized boundary of Space. Costs for suborbital travel are expected to range from $200,000 for Blue Origin and $250,000 for Virgin Galactic (UBS, 2019).

Orbital Travel

Source: SpaceX Dragon Spacecraft, SpaceX

The main player in commercial orbital travel is Space X, led by Elon Musk. SpaceX also has the technical capability to offer short commercial Space flights but does not have an active program at present. Dragon will offer customers the opportunity to fully orbit the Earth every 90 minutes and will allow passengers to experience some of Earth’s wonders from Space. The vehicle is capable of carrying up to seven passengers to and from Earth orbit and beyond eventually. Previous trips to the ISS cost between $20-40 million and Trips to the Moon which are expected as early as 2023 with SpaceX are expected to cost in the region of $150 million, although there is no formal disclosure on the price.

SpaceX is also working on high-speed point-to-point travel on Earth (Starship and Super Heavy), which would see most long distance international trips completed in 30 minutes or less at a speed of 27,000km per hour, reducing flight times by over 11 hours in many cases. Boeing has the longest track record in human Spaceflight. The company’s work on the Commercial Crew Transport program for NASA, using its CST-100 Starliner capsule, will also free up seats for potential paying tourists in the future (UBS, 2019).

Space Attractions & Experiences

Spaceports also present significant opportunities, particularly if new Spaceports would act as hubs to service regions and wider transport options. This could offer the opportunity to join up a number of services, from traditional commercial flights to high-speed point-to-point flights, Space Balloons and orbital launches also. Source: Spaceport America, Foster & Partners

The first Spaceport for orbital and human launches was the Baikonur Cosmodrone in southern Kazakhstan, where Sputnik 1 and Vostok 1 were launched from. Since then, most of the world's largest investors in Space programs have developed their own Spaceports, with many new one's planned for the years' ahead.

Space attractions and resorts on Earth are similarly proving to be an attractive burgeoning sector for development and investment. The Star Wars franchise alone has earned $56 billion+, with other such as Star Trek, the Marvel universe, IMAX movies and other Space themed properties generating billions more. Many of these are incorporating experiential and immersive technologies that can provide new experiences, simulations, and training for Space travel.

Zero-G flights and MIGFlug offer passengers the opportunity to experience weightlessness, in short bursts of 20 seconds, on a flight that lasts approximately 90 minutes. Passengers can experience zero gravity, lunar gravity (one sixth your weight) and Martian gravity (one third Source: ZERO-G Experience, Gozerog.com your weight).

Tickets priced from $3,000 to $5,400 or the whole plane can be hired out at $165,000 for 34 passengers. 

Florida’s Kennedy Space Centre Visitor Complex at Cape Canaveral has opened a new Astronaut Training Experience (ATX) for the public to get a feel for what it would be like to prepare for a trip to Mars and to live on the Red Planet (Mars Base 1). Visitors will get the chance to experience a “Land and Drive on Mars” full-motion simulator, Walk-on-Mars virtual reality, Launch Mission and Spacewalk Training. 

The list of popular Space themed attractions is growing by the day. Space Mountain has long proven to be one of Disney Parks most popular attractions. The Space-themed indoor roller coaster attraction is located at five of the six Disney Parks.

Epcot, at Walt Disney World Resort in Florida is another popular Space themed park, dedicated to the celebration of human achievement, technological innovation, and culture.

Source: Avatar Flight of Passage, Disney's Animal Kingdom: 2017 Walt Disney Productions

The Avatar Flight of Passage at Disney’s Animal Kingdom is a 3D flying simulator that allows guests to take a flight on a native mountain banshee and soar across the landscape of the fabled Pandora. And the long-awaited Star Wars land at Disneyland Anaheim opened in 2019. Galaxy’s Edge is the first phase of the park’s five-hectare Star Wars themed section that has been hotly anticipated since its construction started.

There are several Space themed hotel concepts already launched and more underway, such as the Star Wars themed hotel in Orlando, the “Star Wars: Galactic Starcruiser”. Other popular concepts include Galaxy Pods in Iceland, the Space Suite in Switzerland, and Pengheng Space Capsules in China.

Source: Star Wars Land Disneyland Anaheim: 2019 Disney Enterprises Inc. Lucasfilm Ltd.

The Von Braun Space Hotel goes one step further and wants to put a hotel into Earth’s orbit as early as 2027. The concept is a rotating Space station, with varying levels of artificial gravity on board that could host up to 450 people on board. The extra-terrestrial hotel will feature entertainment venues and sports areas that could open up complete new sports genres due to weaker gravity on board. Axiom and Orion Span also have significant plans already in place to open accommodation in Space in the coming years.

Other Space tourism concepts less mature include GalaXea, which is a solar-powered sailboat that floats through Space and would have a capacity for 15,000 tourists, scientists, and artists. Mars X-Home 3D-printedconcepts developed by SEArch+ take various forms that will be suitable for a crew of four to live and work on Mars for the duration of one Earth year.

The scope for new experience and product development within this segment is unlimited. Many brands have long understood the aspirational power of Space, the stars and futurism to stimulate the imagination of consumers. Space travel and Space tourism are areas that present unique opportunities to enhance brand positioning and prestige.

Consumer interest in unique luxury experiences has been growing exponentially over the past decade. There are endless opportunities to create ancillary products and services to engage this customer base. What is clear, is that this segment can drive high-margin revenue generation, as there is a large addressable market with high engagement and awareness and a considerable backlog of demand. The question is which country will profit the most from this exciting new segment and win at creating a sustainable ecosystem to support it?

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