from suborbital space tourism to commercial personal spaceflight 2010 acta astronautica

Upload: pepehux

Post on 17-Feb-2018

217 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica

    1/8

    From suborbital space tourism to commercial personal spaceflight

    Walter Peeters

    International Institute of Space Commerce (IISC), Douglas, Isle of Man, International Space University (ISU), Strasbourg, France

    a r t i c l e i n f o

    Article history:

    Received 27 May 2009Received in revised form

    15 October 2009

    Accepted 19 October 2009Available online 4 December 2009

    Keywords:

    Space tourism

    Commercial spaceflight

    Point-to-point

    Product life cycle

    Customer requirements

    a b s t r a c t

    Excellent essays have been recently published on the profitability and the future of

    space tourism. This paper is intended to supplement the considerations in this field andemphasizes the further potential evolution of commercial personal spaceflights. Indeed,

    based upon work done at the International Space University (ISU) the oligopolistic

    character of suborbital space tourism has been linked to marketing and product life

    cycle (PLC) considerations and has led to the thesis that space tourism as a profitable

    sector will require a follow-on strategy. Orbital space tourism, on one hand, could

    become an extension of the PLC but, on the other hand, it is assumed that point-to-point

    (P2P) commercial space transport will become the long term sustainable market.

    Without ignoring technical challenges, this paper will mainly concentrate on marketing

    and commercial aspects of personal spaceflight.

    & 2009 Elsevier Ltd. All rights reserved.

    1. Introduction

    Let us examine the parallelism between the develop-

    ment of commercial air transport and the emerging

    development of commercial spaceflight. Although first

    flights of some 300 m with Avion III were performed by

    Clement Ader in 1897, these early attempts were less

    publicly known as they were performed under strict

    terms of military secrecy. More publicly known is The

    Flyer, the first motorized plane constructed by the Wright

    Brothers, which made its first memorable flight in Kitty

    Hawk on 17 December 1903. On 15 September 1908 the

    first passenger, E. Zens, was taken on board of the Flyermodel A, a bi-passenger plane developed for the US Signal

    Corps.1 Already in 1909 the first piloting school was

    established in Pau, France, graduating the first private

    pilots in early 1910.

    Certainly the threatening world conflict accelerated

    the development of aviation considerably and in 1914,

    only a decade after the first flights took place, a

    considerable number of planes and pilots were already

    present, as can be noted from Table 1.

    Production rates rapidly increased during the next few

    years under war conditions, reaching e.g. productions of

    more than 1000 DH-4 aircraft monthly in USA alone, with

    plans to double this production rate after 1918[1, p. 125

    a.f.]. Already France on its own, at that time the leading

    aircraft nation, is reported to have produced nearly 68,000

    aircraft during WW1, from which not less than 52,640 are

    recorded to have been lost!

    2

    Evidently, the availability of this large surplus of

    aircraft, trained pilots and airports from 1919 onwards

    led to the birth of the first commercial passenger flights.

    Many military pilots offered short duration air trips to

    passengers as a side activity to stunt flying (also known as

    flying circuses and barnstorming). An interesting paral-

    lelism to note also is that many of the first point-to-point

    (P2P) air-routes were the result of Prizes, such as the 1919

    Contents lists available atScienceDirect

    journal homepage: www.elsevier.com/locate/actaastro

    Acta Astronautica

    ARTICLE IN PRESS

    0094-5765/$- see front matter & 2009 Elsevier Ltd. All rights reserved.doi:10.1016/j.actaastro.2009.10.026

    Tel.: +33388655024; fax: +33388655447.

    E-mail address: [email protected] It is worth mentioning that this plane was developed under an

    incentive contract for a Heavier-than-Air-Flying Machine, whereby the

    target speed was stipulated at 40 mph. As the Flyer reached a speed of

    42.68 mph a premium of 5000$ (20%) was awarded in accordance with

    the incentive scheme[2]. 2 See www.century-of-flight.net

    Acta Astronautica 66 (2010) 16251632

    http://-/?-http://-/?-http://www.elsevier.com/locate/aahttp://localhost/var/www/apps/conversion/tmp/scratch_7/dx.doi.org/10.1016/j.actaastro.2009.10.026mailto:[email protected]://www.century-of-flight.net/http://www.century-of-flight.net/http://www.century-of-flight.net/http://www.century-of-flight.net/http://www.century-of-flight.net/mailto:[email protected]://localhost/var/www/apps/conversion/tmp/scratch_7/dx.doi.org/10.1016/j.actaastro.2009.10.026http://www.elsevier.com/locate/aahttp://-/?-http://-/?-
  • 7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica

    2/8

    Northcliffe Prize (to Ireland) or the 1927 Orteig Prize for

    the transatlantic ParisNew York crossing.

    The first regular service offered by the Farman

    company between Paris and London, starting as early as

    1919, proved not to be financially viable due to the high

    ticket prices. However, soon after government support

    was provided for such routes and from 1920 commercial

    passenger flights took off with, among others, the then

    reputed Franco-Romaine group with LondonParisCon-

    stantinople routes.

    So even if we can note a number of interesting

    parallelisms there are also a number of considerable

    differences between airflight and spaceflight develop-

    ments:

    Difference in timeline: If we consider the evolution in

    technological know-how it is rather remarkable that it

    took only 15 years between the first experimental

    aircrafts and a commercial passenger service. With the

    first human spaceflight in 1961, it took until 2002

    (more than 40 years) before the first paying passenger,

    Dennis Tito, could participate in a spaceflight.

    Government support: Most analysts agree that the

    birth of commercial air traffic would not have taken

    place without considerable PPP (publicprivate-part-

    nership) type governmental support. Besides some

    isolated attempts, such as the US-DOD supported DC-X

    development and minor ESA and NASA technology

    development contracts, the same impetus has not

    taken place in the space era.

    Customer orientation: The aforementioned Farman

    Company fitted the interior of its F60 Goliath planes

    in accordance with tourist requirements. As one can

    see, e.g. fromFig. 1, the (five) front seat passengers in

    particular had an excellent and undisturbed view.

    Similar customer considerations have only been

    recently introduced in commercial space tourism

    projects.

    2. Customer requirements for personal spaceflight

    Ignoring the customer requirements has very often led

    to commercial failures. Recently, the space sector has

    become increasingly aware of the necessity of this and, in

    particular under impulse from very customer oriented

    companies such as Richard Bransons Virgin Galactic, we

    note increased emphasis in the design phase of commer-cial oriented spacecraft.

    The potential size of the market for public space travel

    will depend, in part, upon the attractive features

    which designers of spaceflight experiences incorporate

    into their spacecraft and related operations. Until re-

    cently, the question had not been asked what do

    passengers require and how can we adapt our planes to

    these desiderata?.

    Several market surveys have been undertaken and

    several opinions have been presented[3,4]. In general, the

    expectations of future space passengers include:

    viewing space and the earth;

    experiencing weightlessness and being able to float

    freely in zero gravity;

    experiencing astronaut training and other sensations;

    communicating from space;

    being able to discuss the adventure in an informed

    way; and

    having astronaut-like documentation and memora-

    bilia.

    These objectives need to be combined withsometimes

    conflictingconstraints such as:

    guaranteed safe return;

    limited training time; and

    minimum medical restrictions.

    The first group of objectives requires adapted interior

    design but also some additional features. Fig. 2 shows

    some of the potential solutions as envisaged at ISU [5]

    whereby we note:

    the chairs are designed to adapt/move in accordance

    with different g-loads in the different phases of travel.

    windows are foreseen to ensure visibility at all phasesand seating positions;

    ARTICLE IN PRESS

    Fig. 1. Model of Farman F60 passenger plane (1919) (Source: Musee de

    lAir, Le Bourget).

    Table 1

    Number of aircraft and planes in 1914[1].

    Country Aircraft Trained pilots

    France 260 171

    Russia 100 28

    Germany 46 52

    Great Britain 29 88

    Italy 26 89Japan 14 8

    United States 8 14

    W. Peeters / Acta Astronautica 66 (2010) 162516321626

  • 7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica

    3/8

    a safety bar is designed to assist passengers back into

    chairs before re-entry;

    communication devices are built into the individual seats;

    cameras on board, to be operated by the co-pilot, to

    record the different phases; and

    wearing of astronaut-type suits and helmets to mini-

    mize potential injury.

    Medical considerations are particularly important.

    Whereas the traditional astronaut-selection philosophy

    was based upon select-in principles, a paradigm shift will

    be needed to concentrate on select-out approaches (since

    all selection criteria will influence the eligible market).

    This has influence on, amongst others [6]:

    the pre-medical check, to be concentrated on select-

    out criteria (whereby psychological issues will play a

    paramount role), as covered by the FAA guidelines[7];

    the medical facilities on board, such as an adapted

    medical kit; and

    telemedicine support. In view of the necessity of anastronaut like suit (mainly for marketing reasons), this

    could be combined with built-in telemedicine (and

    GPS) sensors.

    Also in the case of training for the participants, the

    technical aspects of the training are not the only

    consideration. Spaceflight participants will also wish to

    be fully informed. The educational dimensions of the

    experience will therefore be important as well.

    Last but not least a number of legal issues will need to

    be considered well in advance, such as:

    liability aspects and informed consent forms;

    regulatory issues on certification and licensing (see

    first FAA drafts);

    environmental aspects (propellant pollution and sound

    pollution); and

    export control issues.

    just to quote a fewy

    Increased use of space for commercial transportationwill even lead to more advanced regulations such as the

    ARTICLE IN PRESS

    Fig. 2. Interior design proposal (Doule, ISU).

    W. Peeters / Acta Astronautica 66 (2010) 16251632 1627

  • 7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica

    4/8

    ones proposed in Space Traffic Management (STM)

    proposals[8].

    An attempt to merge the market requirements and thedesign consequences is summarized in Table 2.

    A number of these assumptions have been studied in

    detail in ISU and evidently can be contested by other

    approaches; just to highlight a few of these items:

    astronaut suits and helmets are suggested not only as

    memorabilia but also to add safety related equipment

    as well as to reduce chances for injuries (helmets);

    also from a liability point of view substantial training is

    suggested emphasizing on safety aspects such as

    egress under different emergency conditions. More-

    over this period may be used for medical examinations

    and observation as well as the necessary familiariza-tion with the spaceflight and plane (responding to the

    requirement of candidates to be well informed parti-

    cipants, not only passengers); and

    the short flight will reduce the need for extensive

    medical aid on board, but for injuries and emergency

    situations, a limited small medical kit is proposed to be

    used by the co-pilot, trained to handle medical

    emergencies.

    3. Commercial evolution and outlook

    3.1. The product life cycle (PLC) concept

    The product life cycle (PLC) is a marketing theory

    explaining the expected phases which each product and

    service will pass, from design to obsolescence.

    The PLC indicates that products have four things in

    common: (1) they have a limited lifespan; (2) their sales

    pass through a number of distinct stages, each of which

    has different characteristics, challenges, and opportu-

    nities; (3) their profits are not static but increase and

    decrease through these stages; and (4) the financial,

    human resources, manufacturing, marketing and purchas-

    ing strategies that products require at each stage in thelife cycle varies[9].

    Whereas many sectors are used to this cycle and have

    adopted their strategy to it (think of model philosophy in

    the automobile sector), more technological oriented

    sectors have sometimes ignored this reality and failed to

    prepare for successor products.

    A typical PLC is depicted inFig. 3and consists of four

    phases

    In the introduction phase the product or service sales

    are growing slowly in view of the fact that customers are

    unfamiliar with the quality. In this phase, due to the need

    to amortise the investments made in the developmentphase, there will be basically no profit.

    In the growth phase, sales are booming if the market

    accepts and appreciates the product, and profits are rising.

    In many cases, in particular when technological products

    are concerned, the market leader will have a competitive

    advantage as any market followers will first need to

    acquire the technological and production know-how.

    Unavoidably this is followed by a maturity phase. New

    competitors will enter the market, attracted by the profit

    margins. This does not only mean that the market will

    have to be shared between more parties, but it also often

    leads to forced price reductions due to competition. As an

    overall result the net profit will start to decline. Importantto note is also the fact that competitors may have learned

    ARTICLE IN PRESS

    Table 2

    Space tourism marketing/system interrelation.

    Phase Market requirement System consequence

    Medical selection Allow maximum number of candidates Medical select-out criteria with waivers

    Training Minimum duration Remote familiarization phase, tailored 10-days training

    Informed passenger Appropriate introduction using astronaut-like material

    Insurance Solid cross-waiver of liability and commercial insurance Reliability assessment and development of consent forms

    Spaceport Safe and touristy attractions Location and infrastructureEasy access Good connection to major airports

    Minimum of cancellations Location in terms of weather conditions

    Minimum interference Distant from commercial airline routes

    Flight Experience acceleration Trajectory, propulsion, admissible g-loads

    Viewing possibilities Window design, also in relation to different positions

    Experience microgravity Free floating space, easy unstrap/strap mechanism

    Safety on board Fixation handles, medical kit, helmets, easy strapping

    Documentation Filming on board. Positioned cameras

    Communication Communication devices, possibly built in the seats

    Return Memorabilia Astronaut suit, filming material, certificate

    Fig. 3. Typical product life cycle curve (source: Perrault, William D. Jr. &

    E. Jerome McCarthy, Essentials of Marketing, 7th Edition, 1997. Chicago:

    Richard D. Irwin Company.)

    W. Peeters / Acta Astronautica 66 (2010) 162516321628

    http://-/?-http://-/?-
  • 7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica

    5/8

    from the market leader and may come up in this phase

    with improved products.

    At the end, during the decline phase, sales tend to

    reduce very rapidly. This can be due to the fact that the

    market/consumer behaviour has changed but in many

    cases it is the result of a new product with improved

    features. In this phase remaining stocks often have to be

    sold at strongly reduced or even dumping prices.We should not fail to mention here that technology is

    playing a paramount role in these cycles. Products can

    become rapidly obsolete e.g. after the introduction of a

    superior standard, as we witness presently in the case of

    video standards, photography and IT products.

    For some of these technological driven products we

    should rather use the technological life cycle (TLC)

    concept[10].

    3.2. The PLC and suborbital space tourism

    Let us apply these principles to our present Space

    Tourism scenario. As a starting assumption we can

    assume that we will follow a rather traditional PLC and

    not as much a TLC approach, as the development of new

    technologies will not happen rapidly.

    As in any product life cycle, we have to assume a

    strong reduction in profitability after a few years of space

    tourism operation. There are two particular reasons for

    this:

    Ticket price reduction: All forecasts show that only the

    first group of customers will be prepared to pay the

    relatively high ticket price of, say 200,000 USD. Futron[3]

    suggests a reduction to 175,000 USD after 3 years ofoperation, followed by a further reduction to 150,000 USD

    2 years later and a continued gradual decline in the real

    price to 50,000 USD over time as shown inFig. 4.

    Competition: Depending on the strategies for market

    development adopted by the first operators, in a mono-

    polistic or oligopolistic environment, profits may be

    rather high during the first years as shown in simulations

    based upon the Hopper and Kankoh Maru projects [11].

    Every product life cycle then comes into a phase ofsaturation when other competitors will enter the market,

    putting pressure on prices.

    This risk is rather high in our specific case. With some

    16 known projects at the time of writing this article, some

    of them funded by financially strong Business Angels, we

    can reasonably assume that more than a few will enter

    the market rapidly one after the other. It is evident that

    not all competitors will have the cash-flow capacity to

    sustain operations, but four or five likely ones will

    certainly influence the ticket price structure.

    3.2.1. Resulting PLC effectThe combination of a declining market, which will

    require ticket price reductions, and the increasing com-

    petition, may lead to a point where declining profitability

    of this suborbital tourism product results in a shake-out of

    the market, as can be observed in the early years of other

    new industries. We can therefore assume that we are

    dealing with a highly profitable but potentially volatile

    market in the mid-term.

    Estimating the points in a PLC is very difficult, unless

    historical benchmark data are available (like the average

    lifetime of a car model).

    An attempt was made in ISU using standard economic

    concepts measuring the market structure. In particularthe MES factor was used as a key indicator, whereby MES

    ARTICLE IN PRESS

    Fig. 4. Forecasted declining ticket price[3].

    W. Peeters / Acta Astronautica 66 (2010) 16251632 1629

  • 7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica

    6/8

    stands for minimum efficient scale, defined as the

    smallest output level where long run average costs

    minimized [12]. Developing a tailored simulation model

    for this specific case this exercise concluded[13]:

    maximal return is reached with a capacity of 2000

    passengers per year;

    maximum profits are assumed between 5 and 7 yearsof operation (end of growth phase in Fig. 3); and

    the market will then have evolved from a monopolistic

    to an oligopolistic structure.

    As with each product and service, the next step will

    therefore be to look for further evolution and diversifica-

    tion. Whereas in the exclusive segment orbital flights can

    be assumed to be the next market segment, point-to-

    point suborbital transport seems the next logical step

    after the initial market boom. Note that this will also be in

    line with the evolution in the aeronautical sector, where-

    by the first flights were event oriented before evolving to

    regular point-to-point travel.

    4. Point-to-point (P2P) space travel: a sustainable

    market

    4.1. The P2P space travel concept

    In order to evaluate the feasibility of the market, an

    extensive study was made in ISU on the different

    parameters. As a starting point Concorde flights were

    taken in terms of time savings and potential markets. The

    results of the study[14]can be summarized as follows:

    only distances of minimum 3500 km shall be consid-

    ered for suborbital flight patterns. Formore econom-

    icballistic flights this minimum distance starts from

    7000 km onwards;

    flight apogees shall be limited to max. 500km height to

    avoid radiation exposure;

    vehicles and trajectories shall be designed to reduce g-

    loads for passengers;

    the triangular trajectory New YorkLondon/Paris

    Tokyo is presently considered as the most promising

    one, although other links could be considered as

    evolutive, as shown inFig. 5; planes to cover this trajectory require high develop-

    ment cost (SUBORB-TRANSCOST calculation: 4.3B$,

    unit cost 680M$) with ticket pricing in the order of

    75; 000$;

    a market of 50 passengers per day is assumed (based

    upon Concorde equivalence), on the prime trajectory

    LondonNew YorkTokyo (New YorkTokyo: 90 min.

    flight time);

    a viable cargo market will be limited to specific items,

    for which the time value is high (such as transplants);

    extensive work is needed on environmental propulsion

    and noise level reduction, compliant with departures

    and arrivals at conventional airports close to urbanregions; and

    hybrid bilateral agreements are recommended, before

    full ICAO standards are in place.

    Special emphasis needs to be given to the spaceport

    operations in the case of P2P travel.

    Dedicated spaceports will certainly have the advantage

    of being more independent from commercial interfer-

    ences but risk being further from town centres for

    environmental reasons. Moreover they will require addi-

    tional airport to airport transfer in the case of an

    additional hub. Such additional time constraints willmake this solution rather non-compatible with the time

    driven business model described hereafter.

    This leaves the preferred option of using conventional

    airports. However, in order to have a competitive

    ARTICLE IN PRESS

    Fig. 5. Prospective routes for P2P travel [14].

    W. Peeters / Acta Astronautica 66 (2010) 162516321630

  • 7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica

    7/8

    approach linked to the value of time saving, a dedicated

    check-in and disembarking/custom clearance service (like

    was done with Concorde flights) will therefore have to be

    envisaged.

    4.2. Towards a P2P business model

    It is important at this stage to point out that there is a

    considerable difference between space tourism and P2P

    space travel. The first category of activities falls under the

    category of adventure tourism, defined as[15].

    A variety of self-initiated activities utilizing an interaction

    with the natural environment that contain elements of real

    or apparent danger, in which the outcome, while uncertain,

    can be influenced by the participant and circumstance.

    Hence, space tourism:

    is a once-in-a-lifetime experience;

    will attract people who are not risk averse;

    the trip may have some level of discomfort as part of

    the experience;

    will require a separate spaceport infrastructure (high

    class hotels, simulators,y);

    tourists want to be a part of the astronaut experience

    and are willing to undergo (limited) training; and

    the ticket price will be strongly supply oriented (no

    competitive offering).

    For commercial space travel, however

    time saving will be the paramount factor;

    the trip shall be comfortable and without risks;

    connections to other airports and business centre

    infrastructures are important (hence landing at com-

    mercial main airports);

    the space aspect is of interest but not the main

    motivator; and

    the ticket price will need to be competitive withalternative transport means (like private jets).

    The latter difference brings us to the business case aspect.

    If we assume in a first iteration that the passengers will

    be present first class travellers with, in most cases,

    additional VIP service facilities (check-in/out), we may

    conclude that the time savings will be merely the flight

    time difference, not the on-ground processing.

    Table 3 provides a comparison between normal

    (present) flight durations and the calculated suborbital

    flight durations[14].

    The situation becomes even more expressive if we

    consider, e.g. a LondonSydney route, which requires astop-over and therefore travel times in the order of 22 h.

    The target market group we are considering are time-

    poor, cash-rich people, who are obliged to travel, such as:

    top executives;

    board members;

    sports stars (golf, tennis, formula-1); and

    celebrities (movie stars, musicians).

    Evaluation of the first two categories result in hourly cost

    figures (in terms of opportunity cost, i.e. the alternative

    income generated by other options than travel time) in

    the order of 4500$, with the latter two categories evenreaching levels of 30,000$/h[16].

    It is clear that for the second category a trade-off,

    purely based upon the time savings, can easily be reached,

    whereby other factors such as the effect on physical

    fitness will add a distinct but less tangible advantage.

    The first category of travellers represents the more

    frequent user group, and is therefore important for a

    sustainable market, hence could be used as a prime basis

    for a business model approach.

    Let us base our assumptions on the New YorkTokyo

    trajectory.

    We can compare for this specific case:

    the present, normal flight including a first class ticket

    at 11,800$3; and

    an alternative spaceflight with a time saving over 11 h

    at 4500$/h opportunity cost.

    Resulting in a theoretical break even space ticket price of

    49,5004+11,800=61,300$.

    Hence, based upon the previously estimated ticket

    price of 75,000$ we are reaching equitable levels, but with

    the intangible asset of having at the same time y been in

    space as an extra bonus!

    Evidently, in cases where stop-overs are presently

    involved, the case for a direct P2P space trip will be even

    stronger due to the additional time savings.

    An additional comfort element can be illustrated as per

    Fig. 6. P2P flights between London (or Paris) and New York

    would allow the executive to leave around 10 am in

    London (or Paris), have a 4 h meeting in New York and be

    back the same day, around 11pm in London/Paris.

    Certainly this will be a real asset for frequent travellers.

    It seems evident that many aspects, in particular

    technical ones, will require a debugging phase before we

    can implement this business case, in particular in the

    ARTICLE IN PRESS

    Table 3

    Comparison of flight durations.

    Route Distance (km) Aircraft duration (h) Suborbital duration (av. min.) Time saving

    London-New York 5900 7 h 30 70 6 h 20

    London-Singapore 9560 11 h 30 76 10 h 14

    New York-Tokyo 10,900 12 h 50 83 11 h 27

    3

    BA ticket in January 2009, according to website.4 Conservative 11 h timesaving at 4,500$/hr.

    W. Peeters / Acta Astronautica 66 (2010) 16251632 1631

    http://-/?-http://-/?-
  • 7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica

    8/8

    fields of flight comfort and safety. In many cases a number

    of elements will be the same and it is assumed that the

    suborbital flight experience will provide us with strong

    feedback.

    It would therefore be an added advantage for the

    market evolution if the present design of suborbital

    vehicles could to some extent be coherent with the

    ultimate goal to develop a new generation of P2P space-

    craft. The present EADS design (seeFig. 7) is undoubtedly

    a first step in such a direction.

    5. Conclusion

    There is no doubt that the present plans for suborbital

    space tourism will result in a flourishing market over the

    next few years. The large number of potential competitors

    and the limited market will most probably result in

    reaching maximum profitability after some 57 years of

    operation.

    Entering, in terms of the product life cycle, in to the

    maturity phase, orbital space tourism can then extend the

    lifecycle considerably.

    The real sustainable market, in analogy with what

    happened in the aeronautical sector will be point-to-point

    (P2P) regular space travel, whereby the relatively high

    ticket prices will be compensated by the considerable

    time savings, important for a select but tangible time-

    poor, cash-rich target public.

    However, this market segment will have higher safety

    and comfort requirements compared to the previous,

    more adventure tourism targeted group. It is therefore

    important that the suborbital space tourism experience is

    mirrored towards the later phase of space travel and

    assists in debugging the early problems by appropriate

    design and operational experience.

    References

    [1] I.B. Holley, Ideas, Weapons, Yale University Press, 1998, p. 29.[2] H.J. Herten, W.A. Peeters, Incentive contracting as a project

    management tool, International Journal of Project Management 4(1) (1986) 3439.

    [3] FUTRON Corporation, Suborbital Space Tourism Demand Revisited,Futron, Bethesda, 2006.

    [4] G. Crouch, J. Laing, Space tourism attributes and implications forconsumer choice, in: Conference on Cutting Edge Research inTourismNew Directions, Challenges and Applications, Universityof Surrey, UK, June 69, 2006, ISBN 1-84469-012-1.

    [5] O. Doule, Passenger Safety on Personal SpaceflightSpacecraftInterior Concept Design, IAC, Glasgow, 2008 IAC-08-B3.2.-D2.7.5.

    [6] S. Adebola, Emergency Medicine for Human Suborbital Flight,Personal Assignment, ISU, 2008. Available from /www.iisc.imS.

    [7] FAA, Guidance for medical screening of commercial aerospacepassengers, Federal Aviation Administration, Report DOT/FAA/AM-61/1, January 2006.

    [8] K.-U. Schrogl, Space traffic management: the new comprehensiveapproach for regulating the use of outer space. Results from the2006 IAA cosmic study, Acta Astronautica 62 (2008) 272276.

    [9] P. Kotler, K.L. Keller, Marketing Management, 12th ed., PearsonEducation, Upper Saddle River, NJ, 2006.

    [10] W. Peeters, Space Marketing, Kluwer, Dordrecht, 2001.[11] R. Goehlich, A ticket pricing strategy for an oligopolistic space

    tourism market, Space Policy 21 (4) (2005) 293306.[12] G.N. Mankiw, Principles of Economics, third ed., Ohio, South

    Western, 2004.[13] J. MacLeod, Estimating suborbital market structure, Personal

    Assignment, ISU, 2008. Available from /www.iisc.imS.[14] ISU, Great expectations: an assessment of the potential for

    suborbital transportation, MS08 Team Project, ISU, Strasbourg,2008. Available from /http://www.isunet.eduS.

    [15] J. Naisbitt, Global Paradox, Avon, New York, 1994 p. 163.[16] C. Druce, Business planning considerations for successful commer-

    cial point-to-point sub-orbital space travel operations. Paperpresented at IAA Symposium, Ref. AA-1-2008-044, Arcachon,France, May 2008.

    [17] C. Iwata, Pricing of suborbital PTP using opportunity cost, PersonalAssignment, ISU, 2009. Available from /www.iisc.imS.

    ARTICLE IN PRESS

    Fig. 6. Possible travel schedule London/ParisNew York[17].

    Fig. 7. Artist impression of the EADS suborbital spacecraft (Source:

    EADS).

    W. Peeters / Acta Astronautica 66 (2010) 162516321632

    http://www.iisc.im/http://www.iisc.im/http://www.isunet.edu/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.isunet.edu/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/