The possibility of commercial space travel is expanding all the time as more and more companies explore the profit potential of sending tourists into space. However, as space travel becomes increasingly feasible as a commercial venture, certain questions inevitably begin to arise. Investors have known for some time that it is profitable to own an aerospace company that manufactures parts and equipment for spaceships. After all, the race to build more efficient rockets and spaceships have been ongoing for a long time. On top of this, government investment in space programs means that there is a high demand for private firms to collaborate on potential extra-terrestrial ventures. But what about when you take the development of a rocket company into the private sector?
Fascinating as the idea of commercial space travel is, is it truly reasonable to believe that there will soon be a competitive market in outer planetary tours? Or, in reality, will the appetite for space exploration remain exclusive and niche? We discuss the realities of rocket travel in the modern world.
Which Rocket Companies Are Invested in Commercial Space Travel?
In recent years, more and more rocket company developers have set their sites on space travel as a luxury commodity. Companies such as Space X, Virgin Galatic, and Orbital have all ambitiously set their sights on allowing ordinary people to begin exploring the stars. Rocket company founder and entrepreneur behind Blue Origin, Jeff Bezos, hopes to successfully expand into reusable rocket ships. This could see civilians enjoying unique suborbital flights and the opportunity to see the Earth from space.
Other contenders in the race for commercial space travel, such as rocket company owner of SpaceX, Elon Musk, has committed huge amounts of resources to this commercial venture. He hopes to see humans land on and explore Mars in the near future and views the Red Planet as a potentially viable commercial space site. Meanwhile, other companies, such as Boeing, have collaborated with government space programs like NASA to develop the idea of luxury space flights.
Will Rocket Company Revenue Expand in a Private Market?
However, as with any commercial market, the space travel industry will ultimately rely on one thing: consumer demand. Will rocket companies profit from offering to send people into space? Or has the demand for space travel been overhyped by tech billionaires interested in expanding their own financial empires?
There is some financial speculation that suggests that the interest in commercial space travel could be a bit of a bubble. Previously, most space exploration has relied on government funding and private investment and has not been tested on an open consumer market. Although there is initial interest from investors and, of course, public curiosity, this does not mean that the industry will necessarily grow. For profitable growth to occur, the public will have to maintain a consistent interest in paying for space travel, which increases over time alongside technological advances.
What May Hinder/Help the Financial Growth of Space Travel?
There is currently major interest in the possibility of commercial space travel. However, this does not necessarily translate to consumer spending. What factors may affect the public’s willingness to venture into space:
The current public perception is that space travel, if it were commodified for public use, would be a luxury expense. Therefore, it would have a niche and exclusive clientele and a smaller pool of customers to initially draw from. Many of the processes that go into owning a rocket company and manufacturing space equipment are also extremely expensive. Therefore, companies will have to charge prices in accordance with what they spend to generate a profit.
- Safety Concerns
Space travel is getting safer all the time and will likely continue to do so. However, space is an unknown frontier and something that consumers may initially be wary of. What’s more, accidents do occur on space missions and, when they do, these tend to be high profile and widely covered. Public trust in the rocket companies in question will also be a factor. Therefore, it is reasonable to assume that consumer trepidation and perception of risk may play a role in some rocket company earnings.
Investors in space travel must understand that their early investments may take time to pay off. If investors remove their money too quickly from the market, many projects may not reach fruition due to financial, safety, or technical setbacks. Although a small-scale rocket part producer of rocket company valuation is set quite high, larger commercial ventures may struggle due to lack of funds and the difficulty of rapid growth.
In general, it is not a bad idea to invest in space travel, rocket companies, or extra-terrestrial ventures. It is highly likely that these industries will continue to grow and will become cheaper and more accessible over time. However, when it comes to consumer demand, the greatest test is yet to come.
Final Call: How do you feel about the future of space travel? Are you desperate to see the stars up close, or does the thought scare you? Would you pay to fly into space? Put your answers in the comments!