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Space Tourism Value Chain - When - Kang-Lin Peng
Space Tourism Value Chain - When - Kang-Lin Peng
Hong Chen
Institute for Research on Portuguese-speaking Countries (IROPC), City
University of Macau, Macau, China
This work is subject to copyright. All rights are solely and exclusively
licensed by the Publisher, whether the whole or part of the material is
concerned, specifically the rights of translation, reprinting, reuse of
illustrations, recitation, broadcasting, reproduction on microfilms or in
any other physical way, and transmission or information storage and
retrieval, electronic adaptation, computer software, or by similar or
dissimilar methodology now known or hereafter developed.
Hong Chen
Email: hongchen@cityu.edu.mo
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Footnotes
1 The term “cosmic velocity” pertains to the four distinct initial velocities that an object assumes
upon departing from the gravitational field of celestial bodies. The first cosmic velocity is
determined by the presence of a dense atmosphere on the surface of the Earth, which impedes the
spacecraft's ability to move in a circular trajectory in close proximity to the planet’s surface due to
air resistance. Consequently, the spacecraft must ascend to an altitude of approximately 150
kilometers before it can achieve a circular trajectory, where the impact of air resistance is
negligible. At this altitude, the spacecraft attains a circling velocity of 7.8 km/s.
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024
K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_2
2. Space Firms
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China
Hong Chen
Email: hongchen@cityu.edu.mo
2.1.1 SpaceX
Space Exploration Technologies Corporation, commonly referred to as
SpaceX, is an American space transportation company founded by Elon
Musk in June 2002, with its headquarters located in Hawthorne,
California, USA (Seedhouse 2013). The company’s spacecraft, “Dragon,”
was the first privately-owned spacecraft to transport humans to the
space station, capable of carrying up to seven passengers or a
significant amount of cargo to and from Earth’s orbit and beyond
(Harrison 2012). SpaceX’s Falcon 9, the world’s first orbital reusable
rocket, is designed and manufactured by the company, enabling the re-
launch of the most expensive parts of the rocket and reducing the cost
of space flight (Bjelde et al. 2008). This cost advantage has made
SpaceX the world’s leading space enterprise, with a goal to improve
service quality and quantity while reducing costs (Sawik 2023). The
company has launched tens of thousands of “Starlink” satellites, as
indicated by official statistics on its website, and its development
process is presented in Table 2.1.
Table 2.1 Development of SpaceX
Year Event
2006 In August, SpaceX acquired contracts from NASA for commercial rail transport services
(Coughlin et al. 2006)
2008 SpaceX announced that they had won a $1.6 billion contract for NASA’s commercial supply
service (Lambright 2015)
2012 In October, SpaceX commenced transporting merchandise to the International Space
Station through the Falcon 9 and “Dragon” spacecrafts, which were launched into orbit.
The duration of their visit to the space station was 18 days (Vozoff and Couluris 2008)
2013 In June, the successful deployment of Turkmenistan’s inaugural satellite was achieved. In
October, a significant milestone was reached with the successful launch and precise
landing of the “Grasshopper” rocket, representing the first instance of reusable rockets
being developed by humans. In December, SpaceX accomplished the inaugural launch of
the “SES-8 Commercial Communication Satellite” utilizing the Falcon 9 rocket (Garcia
Sánchez 2022)
2014 In May, the Falcon 9 reusable rocket successfully landed at an altitude of 1,000 m.
However, in August, the Falcon 9 rocket with three engines experienced a catastrophic
explosion while in flight. In September, the announcement of the “Space Taxi” contract
was made, outlining plans to transport astronauts to the International Space Station in the
coming years (Seedhouse and Seedhouse 2016)
2015 In November, NASA secured an order for the “Space Taxi” program. In December, the
Falcon 9 rocket was successfully launched, marking the first instance of successful
recovery of a first-stage rocket in human space exploration history (Chang and Chern
2016)
2017 In March, the “second-hand” rocket was utilized for the inaugural launch of a satellite.
Subsequently, in June, the maiden Falcon 9 rocket landed on a floating platform in the
Pacific Ocean within eight minutes of its launch, and was triumphantly retrieved at sea
(De Gusseme 2021)
2018 A total of 11 “second-hand” rockets were successfully launched
2019 Space X has announced the rocket carpool launch initiative, stating that it has the
capability to launch satellites into the sky at a starting cost of no less than $2.25 million
(de Freitas Bart and Hoffman 2021)
2020 In February, a proposal for private space tourism was unveiled, featuring spacecraft
capable of accommodating up to four passengers (Seedhouse 2022a)
2021 A historic milestone was achieved in September as the inaugural fully commercial manned
space mission launched four non-astronaut individuals into space. Notably, the rocket
booster successfully landed on the uncrewed recovery vessel of Space X
Year Event
2022 In April, the Congregational Space Company successfully executed the inaugural all-
civilian space mission, wherein four non-astronaut civilians were launched into space and
subsequently docked at the International Space Station to partake in the novel experience
of space tourism
Time Event
November The New Shepard rocket was sent up to a height of 100 km and then successfully
2015 retrieved
December The seventh launch of the New Shepard rocket was successful, as it landed
2017 without any issues and deployed the uncrewed Crew Capsule 2.0 into space
April 30th, The New Shepard suborbital craft was launched and retrieved successfully,
2018 achieving a maximum altitude of 351,000 feet (107 km)
July 20th, Blue Origin’s inaugural crewed mission lasted for 11 min and reached 100 km
2021 above the planet’s surface
2.2.2.1 LinkSpace
Beijing LinkSpace Technology Co., Ltd., founded by Hu Zhenyu in 2014,
has secured a round of financing worth tens of millions of yuan in
March 2017 (Harvey 2019). The company’s primary offerings include
the RLV-T series, SRV-1, and NewLine-1 (LinkSpace 2021). With fully
reusable rocket engineering capabilities, LinkSpace is capable of
providing commercial launch services worldwide (Niederstrasser
2022). The company operates a rocket assembly plant and test base in
Shandong and a commercial launch base in Qinghai (Hong 1995).
Currently, LinkSpace’s rockets possess the ability to enter sub-orbit,
and their test success rate surpasses the industry average (LAT Group
2021) (Table 2.7).
Table 2.7 Development of LinkSpace
Time Event
May A new and improved rocket called RLV-T5 has been created, which utilizes five liquid
2018 rocket engines and its most notable characteristic is its ability to be recycled
August The RLV-T5 recoverable rocket underwent its third test of flying at a low altitude and
2019 being retrieved successfully
End of The initial launch vehicle creation, known as NewLine-1, has a planned debut in orbit
2021
Time Event
July 25, Star Glory’s launch vehicle was launched for the first time. It achieved suborbital orbit
2019 with great accuracy, making it the first private company in the world, other than the
United States, to launch a rocket into orbit successfully
May 27, The Star Glory Focus-1 demonstrates the ability to perform a 500-s test run for the
2020 second time using its liquid oxygen methane engine. This successful test run has made
Focus-1 the first liquid oxygen methane engine in China capable of a second start
End of 2-7 launch vehicles are expected
2021
2.2.2.3 OneSpace
One Space Technology Group Co., Ltd., also known as OneSpace, was
founded in August 2015 by Shu Chang (Liu et al. 2019). The company
specializes in OneSpace Rocket, OneSpace Electronics, and OneSpace
Power, with its primary products being the OS-Xseries and OS-M series
rockets, which are small and medium-sized solid rocket launching
platforms (OneSpace 2018). OneSpace is dedicated to constructing the
“Rocket +” industrial service platform and delivering commercial
satellite launch services worldwide. The company has three research
institutes and two research centers. On May 14th, 2021, the
construction of the second phase of OneSpace Rocket Intelligent
Assembly Manufacturing Base commenced in Liangjiang New District,
Chongqing, which will provide robust support for its rocket research
and development. In September 2020, the company completed
strategic financing, although the exact amount has not been disclosed
(One Space 2019) (Table 2.9).
Table 2.9 Development of OneSpace
Time Event
May 17th, The “Chongqing Liangjiang Star” by OneSpace has been launched successfully,
2018 marking the first flight of China’s initial privately developed commercial
suborbital rocket
September The company OS-X1 rocket and “Chongqing Liangjiang Star” have successfully
7th, 2018 launched their second commercial suborbital rocket that they developed on their
own
March 27th, The Lingque-1 B was launched from the Jiuquan Satellite Launch Center using an
2019 OS-M solid-state carrier rocket. However, the rocket lost its control after the first-
stage separation, resulting in the failure of the launch mission (Niederstrasser
2022)
2.2.2.4 LandSpace
LandSpace Technology Co., Ltd. was established in June 2015 by Zhang
Changwu and is a prominent commercial enterprise in China that
specializes in the development and operation of liquid rockets (Uhalley
Jr., 2018). The company recently secured RMB 1.2 billion in financing
during its C+ round in September 2020 (Liu et al. 2019). LandSpace’s
primary offerings include rockets, such as Suzaku No.1 and Suzaku
No.2, and engines, including the Tianque TQ-12 and 80-ton liquid
oxygen methane engine system. The company’s primary focus is on
meeting the global demand for satellite constellation launches and
providing standardized launch service solutions to the global market
(Zhai et al. 2022). The LandSpace company has established several
research and development centers, including the Beijing R& D Center,
Xi’an R& D Sub-center, and the Yangtze River Delta Region Center,
which comprises the Intelligent Manufacturing Base, Huzhou Hot Test
Center, and Jiaxing LandSpace Center (Landspace 2020) (Table 2.10).
Table 2.10 Development of LandSpace
Time Event
October 2018 The launch of the blue space rocket named “Suzaku-1” was unsuccessful due to
an abnormal third stage, resulting in the failure to put the satellite into orbit
November The test of the two-stage rocket engine for the Suzaku No.2 liquid carrier
13th, 2020 rocket was entirely successful (Manzagol-Harwood 2022)
January 29th, The test for separating the fairing of the Suzaku No.2 rocket was successful
2021
Time Event
December The Ceres rocket’s three-in-one test was a resounding triumph
2019
Time Event
July 2020 The matching test between the “Ceres-1” full arrow and the ground equipment
has been successfully completed
November 7th, The “Ceres-1 (Yao-1)” rocket was launched with success and it placed the
2020 “Apocalypse Eleven” into a sun-synchronous orbit at a distance of 500 km
University Type
Beihang University World-renowned high-level universities
Nanjing University of Aeronautics and Astronautics China’s first-class universities
Civil Aviation University of China Regional first-class universities
Nanchang Hangkong University Regional first-class universities
Shenyang Aerospace University Regional first-class universities
Civil Aviation Flight University of China Regional first-class universities
Xi’an Aeronautical University Regional high-level universities
Guilin University of Aerospace Technology Famous regional universities
North China Institute of Aerospace Engineering Famous regional universities
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Footnotes
1 Source https://www.economist.com/china/2015/01/08/ready-for-launch.
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024
K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_3
3. Space Travelers
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China
Hong Chen
Email: hongchen@cityu.edu.mo
In 2017, the Russian Air Force offered a novel opportunity for the
general public to partake in a unique flight experience (Giles 2017). For
a fee of approximately $70,000, individuals were able to embark on a
supersonic flight aboard a MiG-29 fighter aircraft, which was piloted by
an active-duty Air Force pilot. The flight entailed navigating challenging
postures at an altitude of 15 km above the earth’s surface. It is worth
noting that such an endeavor typically necessitates a high level of
physical fitness from the participant.
(2) High Altitude Balloon
The age segment that may partake in space travel within this age
comprises aerospace enthusiasts due to realizing their personal worth.
These individuals are employed full-time and have the luxury of an
uninterrupted eight-month vacation period. Their net worth
experiences an annual increase of $250,000, surpassing their
contemporaries’ physical well-being.
Irrespective of occupational categories, the target market for space
tourism can be established to experience the essence of life and self-
actualization. Individuals with limited financial resources can partake
in the space culture festival’s competitive events. The Macao Special
Administrative Region, renowned for its gambling industry, can
establish a prize pool similar to the “Dream of Space” initiative,
enabling each participant to compete for a special prize for space travel
(Luke 2013). The prize pool can provide the winners with the means to
afford space travel tickets, thereby fulfilling their dream of space travel.
However, unsuccessful participants retain their eligibility to visit the
space base and participate in the next lottery round. The target market
is boundless, and the chances of winning the prize persist. The
development of this target market necessitates participation in the
competition bureau’s design.
In a word, space tourism is a commercial activity developed for
tourists with demand (Chang 2015). The supply side of this industry is
supported by a well-established launch and operation mechanism that
is primarily utilized for national defense, scientific research, and other
commercial activities, including communication satellites (Oltrogge and
Christensen 2020). The emergence of a new industry in this domain is
contingent upon attaining safety, risk management, and market
capacity in manned space technology. This industry has the potential to
generate economic value and provide opportunities for human survival
and social welfare.
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(2) The white section of the suit is constructed from a reinforced glass
fiber material that exhibits resistance to high temperatures, fire,
acid, and alkali.
(3) The glove has data sensors that enable the wearer to control the
spaceship by touching the screen while also providing protection
against fire and electricity.
(4) The spacesuit has a single contact life supply system on the legs,
and the aerospace boots are designed to prevent skidding, fire,
and electricity.
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5. Space Hotels
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China
Hong Chen
Email: hongchen@cityu.edu.mo
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6. Space Insurance
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China
Hong Chen
Email: hongchen@cityu.edu.mo
Space tourism faces potential risks during space travel, and even with a
“safety-first” design, it is impossible to ensure that nothing goes wrong.
Therefore, it is necessary to use space insurance to protect against
potential risks and reduce the possibility of economic losses. When
risks occur, the project can receive compensation from space insurance.
For the insurance industry, space travel is a new field, and it is expected
that by 2040, the revenue from this sector will exceed $ 1 trillion
(Tü rksoy 2020). Such a large market demand undoubtedly represents a
“big cake” for the insurance industry, with enormous business
opportunities and potential. However, there are also high risks behind
the huge demand, and acquiring risk data is a significant challenge. The
main reason is that space tourism has been commercially operated
since 2021. The operations and flight safety data are still limited.
Solutions are limited, but few approaches exist, such as simulating and
predicting information data from the space industry supply chain.
However, insurance companies are not fully prepared to carry out
comprehensive business, which has a significant risk cost for space
tourism.
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K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_7
Hong Chen
Email: hongchen@cityu.edu.mo
Space law is the collective term for international laws that regulate
human activities in outer space (Kostenko 2020). It is a universally
accepted and binding international law that governs the conduct of
nations and their citizens in outer space and on celestial institutions. It
encompasses regulations related to space sovereignty, space resources,
space environment, space transportation, space liability, space arms
control, space remote sensing, and space stations. The current
principles of space law uphold the principle of peaceful use of outer
space and celestial institutions by all nations, and it has become an
integral part of modern international law.
Notably, when the United States and the Soviet Union launched their
respective spacecraft into orbit for the first time, it did not provoke
protests from other countries. This demonstrates that flights in outer
space, even if they pass over the airspace of a particular country, should
be considered activities outside of national territories. However, it is
worth noting that the existing provisions of international space law
only establish partial principles regarding activities in outer space
(Stewart 1988). These rules require further refinement.
In addition, international space law has not adequately reflected
legislation on the legal responsibilities and status of private companies
engaged in commercial activities in outer space (Freeland 2005).
Therefore, major spacefaring nations need to unite and work together
to address legislative issues in the emerging field of space tourism and
resolve potential legal conflicts arising from commercial activities in
space. For instance, questions such as whether private companies have
the authority to construct space hotels on the Moon and the legal rights
enjoyed by these establishments within such a jurisdiction are still
unresolved. These questions involve space tourism property rights and
the legislative scope of space tourist jurisdiction, rescue issues, and
accident liability.
Current spacefaring nations such as the United States and Russia
have already conducted extensive research on the legislative aspects of
commercial space tourism within their respective jurisdictions,
accumulating judicial experience. However, an improved international
legal framework is necessary to address the challenges posed by the
commercialization of space tourism. This framework should
fundamentally resolve legal conflicts arising from commercial activities
in outer space and help project operators from every nation to
safeguard their legal rights, promoting fair competition in the space
tourism market. Contemporary space law generally originated from
resolutions unanimously adopted during the United Nations General
Assembly in 1961 and 1963. In summary, all nations recognize their
legitimate right to engage in peaceful activities in outer space. No
country may assert sovereignty over outer space or any celestial body
(Kopal 1988). However, responsible liability is attributed to the
launching entity conducting activities in outer space.
7.1 International Law on Space Tourism
The service models of the space economy mainly include three types:
enterprises serving other governments, enterprises serving
enterprises, and enterprises serving individuals (Spector and Higham
2019). Space tourism currently falls under the category of the third
type of service. The first type of service is for enterprises to provide
technical services to government departments under the guidance and
supervision of regulatory agencies while also receiving space
technology assistance and funding from government departments.
Government departments encourage benign technological research and
development competition in the market by providing technology and
funding to private enterprises. After the enterprises in the market have
developed, government departments can subcontract some space
infrastructure construction services to private enterprises to increase
the innovation power of space technology and promote the
commercialization of the space economy.
Meanwhile, as the market matures and technology continues to
innovate, some investment risks in the market will be shared by private
enterprises. Emerging technologies developed will return to the public,
and the cost of space technology services will correspondingly
decrease. For example, the funding that SpaceX won from NASA’s bid
injection has helped overcome its fundamental survival problems and
continues to support its development. In addition, after private
enterprises provide services to the government, regulatory agencies
should gradually guide the cooperation between relevant private
enterprises, such as space insurance companies providing space
facilities or space passenger insurance services for space tourism
projects. These commercial relationships involve the rights and
obligations of governments, enterprises, and consumers. They should
be governed by a systematic international law to establish a good guide
for developing the space economy and provide reasonable solutions to
possible risks.
To regulate international space activities, establish the rights and
obligations between contracting parties, clarify the principles of human
space activities, and establish liability for damages, among the many
international conventions, the following four conventions are related to
outer space activities.
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K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_8
8. Space Medicine
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China
Hong Chen
Email: hongchen@cityu.edu.mo
Since Yuri Alekseyevich Gagarin’s first human space flight in 1961, over
560 people have completed space flights (Stepanek et al. 2019). Most of
those eligible for space flight missions are highly trained and carefully
selected astronauts with good physical and mental health, which is one
of the crucial hurdles for space tourism.
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K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_9
9. Space Debris
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China
Hong Chen
Email: hongchen@cityu.edu.mo
(1) The fixed cost that the company allocates each year is C1, then
In the formula, m1i means the number of debris removed by the i-th
method per year. The company's annual variable cost (that is, the cost
of cleaning debris) is y1i.
(3) The possible insurance payment received by the space debris
removal company every year is P1, then
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(10.1)
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K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_11
Hong Chen
Email: hongchen@cityu.edu.mo
The user profile method can obtain space tourism consumer groups
with their characteristics. Each group will be investigated to categorize
consumer needs for offering services. The affinity diagram, also known
as the KJ diagram, can be used to collect consumers’ needs, which will
be combined with similar needs of the same kind and summarized into
a tree diagram in different groups. The KJ diagram distinguishes and
combines different types of needs for analyzing the needs of the target
market (Lin et al. 2019; Peng and Lin 2016).
(3) Needs prioritization
(a) Must be needs: Tourists take time for granted are basic needs,
such as safety needs, which are the most fundamental
requirements for space travel (Wild et al. 2015). Tourists will be
very dissatisfied if such needs are not met. However, tourists may
not show additional satisfaction even if such needs are met.
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[Crossref ]
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[Crossref ]
Sauerwein E, Bailom F, Matzler K, Hinterhuber HH (1996) The Kano model: how to delight your
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Hong Chen
Email: hongchen@cityu.edu.mo
(12.1)
Formula (12.1) shows that the economic factor should be greater
than one as long as it is a profitable enterprise; the environmental
factor can be positive or negative depending on its impact on the
environment. The sustainable factor is between 0 and 1. The literature
research shows that the economic multiplier of the space industry is
about 7 ~ 12 (George 2019). We can understand the sustainable space
tourism model from the formula (12.1), which is the integration model
concerned with economy, environment, and technology together. The
model is the practice of sustainable space tourism.
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