How Close Are We To Space Tourism?

The Rise of Space Tourism

Space tourism, once a far off dream, is now becoming a reality.

Major companies like Blue Origin, SpaceX, and Virgin Galactic are leading this charge.

Virgin Galactic's milestone in 2021, when it successfully completed its first fully crewed spaceflight with Richard Branson aboard, marked a historic moment.

Blue Origin quickly followed, with Jeff Bezos himself taking part in the company’s successful manned mission.

Meanwhile, SpaceX continues to push the boundaries with its groundbreaking all-civilian space missions.

These achievements, while remarkable, are just the beginning. Currently, space tourism offerings are limited to suborbital flights that last a few minutes, taking passengers to the edge of space and back.

The experience, though brief, is extraordinary, but it comes with a hefty price tag…

The Challenges With Space Tourism

Virgin Galactic tickets are selling for $450,000, while SpaceX’s trips can run into the millions.

But despite these high costs, demand is still strong.

Wealthy thrill seekers are eager to be among the first to leave Earth's atmosphere, and waiting lists are growing as more people look to the stars.

While the excitement around space tourism is undeniable, the road ahead is filled with challenges.

The technology needed to make space travel safe, reliable, and, eventually, affordable is still in development.

Safety is a significant concern. One catastrophic accident could derail the industry's momentum for years.

This is why companies like SpaceX are heavily investing in reusable rocket technology.

Reusable rockets reduce the cost per launch, and can bring down ticket prices, making space tourism accessible to a broader audience.

However, technological advancements alone aren't enough. The regulatory landscape is another major hurdle.

The Federal Aviation Administration (FAA) and other global regulatory bodies are still figuring out how to manage commercial space travel. These agencies must establish clear guidelines for passenger safety, environmental impact, and airspace management.

For example, the FAA is tasked with ensuring that spaceflights do not interfere with commercial air traffic, a complex challenge given the growing number of launches.

These regulations will play a critical role in determining how quickly the industry can scale. Until these frameworks are in place, space tourism will remain a niche market.

Beyond technology and regulations, there’s also the issue of public perception. Space tourism companies must build consumer trust, not only by demonstrating safety but also by proving that these experiences are worth the investment.

Early adopters are willing to pay a premium, but for the industry to grow, prices need to come down, and the public needs to be convinced that space travel is not just safe, but also a once in a lifetime experience.

Investment Opportunities In Space Tourism

For investors, space tourism represents a unique and potentially lucrative opportunity, but it comes with significant risks.

Publicly traded companies like Virgin Galactic (SPCE) and Boeing (BA) offer direct exposure to the space tourism market.

Virgin Galactic, in particular, has positioned itself as a leader in commercial space travel, with plans to scale operations and reduce costs over time.

The company’s stock has been volatile, reflecting both the high potential and the significant uncertainty surrounding the industry.

For example, after its first successful manned mission in 2021, Virgin Galactic’s stock saw a dramatic spike, only to face steep declines as the company encountered regulatory and technical challenges.

Boeing, while traditionally known for its commercial airplanes, is also a key player in the space industry, providing technology and support for NASA’s space missions.

Investing in Boeing offers a more diversified exposure to the space sector, balancing the high risk, high reward nature of space tourism with the company’s more stable aerospace and defense business.

On the private side, startups like Space Perspective are exploring innovative approaches to space tourism.

Space Perspective, for instance, is developing high altitude balloon flights that will take passengers to the edge of space.

This approach is less risky and potentially more affordable than rocket-based travel, offering an intriguing alternative for investors.

However, investing in private companies can be challenging, requiring significant capital and a long-term commitment, as these ventures are still in the early stages of development.

How Close Are We?

So, just how close are we to seeing space tourism become mainstream?

The answer depends on several factors, including technological advancements, regulatory progress, and public acceptance.

Some industry experts believe that within the next 10 years, space tourism could evolve from a luxury experience for the ultra wealthy to a more accessible adventure. The key to this transition will be reducing costs, improving safety, and scaling operations.

SpaceX’s Starship project, for example, aims to significantly lower the cost of space travel by using fully reusable spacecraft.

If successful, this could pave the way for more affordable space tourism options, bringing us closer to a future where a trip to space is within reach for more than just the super-rich.

Industry analysts predict that by 2030, the global space tourism market could be worth up to $3 billion annually.

But what would the experience even be like?

What the Space Tourism Experience Includes

The experience of space tourism is designed to be nothing short of extraordinary. And it literally includes astronaut training.

If you’re flying with Virgin Galactic, your journey begins long before launch day. You’ll undergo several days of pre-flight training, where you’ll learn about the spacecraft, the flight dynamics, and how to handle the sensation of weightlessness.

This training also includes simulations of the entire flight, ensuring you’re well-prepared for the real thing.

On the day of your flight, you’ll board a spacecraft that takes you to the edge of space, about 50 miles above Earth.

Once there, you’ll experience a few minutes of zero gravity, where you can float around the cabin and take in breathtaking views of Earth through large windows.

You’ll see the curvature of the Earth, the vastness of space, and the thin blue line of our atmosphere are sights that few have ever seen in person.

After a few minutes in space, the spacecraft will re-enter Earth’s atmosphere and glide back down to the launch site, where you’ll land safely.

The entire journey, from takeoff to landing, typically lasts about 90 minutes.

SpaceX offers an even more immersive experience for those willing to spend more.

Their missions, which can last several days, involve orbiting the Earth, and future plans include lunar flybys. These missions provide a deeper experience of space travel, including the chance to see multiple sunrises and sunsets in a single day as you orbit the planet.

What This Means for Investors

For investors, space tourism presents a high-risk, high-reward scenario.

The potential for growth is enormous, but the challenges are equally significant.

For example, the industry could steadily grow in value, but after just 1 disastrous mistake the entire thing could collapse.

But if you’re really confident in space tourism, consider mitigating risk by diversifying your investments across established companies, emerging startups, and related sectors:

1. Publicly Traded Companies: Start by considering investments in publicly traded companies that are leading the space tourism charge. For instance, Virgin Galactic (SPCE) is a pure play in space tourism. Keep an eye on their flight schedules and regulatory approvals—successful flights can lead to significant stock price movements.
   

2. Broader Aerospace and Defense: Consider adding Boeing (BA) to your portfolio for more diversified exposure. Boeing is heavily involved in space missions through its partnerships with NASA, providing a safer, more stable investment compared to companies solely focused on tourism.
   

3. ETFs for Broader Exposure: If you’re looking for a more diversified approach, consider investing in exchange-traded funds (ETFs) that focus on space and innovation, such as ARK Space Exploration & Innovation ETF (ARKX). This ETF includes a mix of companies involved in space exploration, including satellite technology, rockets, and related services.

It’s also essential to stay informed about the latest developments in technology, regulations, and market trends. Space tourism is an industry in flux, and being able to adapt your investment strategy as new information becomes available will be key to maximizing your returns.

For example, the latest technology in reusable rocket design, such as SpaceX's Starship, indicates that SpaceX is likely the forerunner in reducing costs and increasing the frequency of spaceflights. This technological advantage positions SpaceX to dominate the space tourism market as it progresses.

In the long term, those who invest wisely in space tourism could stand to benefit from the first wave of commercial space travel. However, it’s crucial to remain patient and prepared for the inevitable ups and downs that come with investing in a frontier as bold and uncharted as space tourism.

The BMM Takeaway

Our recommendation? After the whole Titan sub disaster, we recommend not signing up for anything before it’s been tested for safety many times.

There’s no worse way to spend half a million bucks then on something that ends up exploding (or imploding).

But there’s plenty to be excited about. We could actually be exploring space sooner than we thought.

And as time goes on, technology advanced, competition increases, and demand lessens, a ride to space could be the same as an Uber downtown.

Disclaimer: The information provided in this article is for educational and informational purposes only and should not be considered as financial or investment advice. Investing in space tourism involves significant risks, including the potential for financial loss. The companies mentioned are provided as examples and do not constitute endorsements or recommendations. Always conduct your own research or consult with a financial advisor before making any investment decisions. The future of space tourism is speculative and subject to technological, regulatory, and market uncertainties.