PEER-REVIEWED RESEARCH ARTICLE 2020, 2(1): 29-35 https://toleho.anadolu.edu.tr/

FACULTY OF TOURISM

A REVIEW OF SERVICES: SUPPLY AND DEMAND CHALLENGES Daniel Georgiev Danova,* aDepartment of International Economic Relations and Business, University of National and World Economy, Sofia, Bulgaria. ORCID: 0000-0001-8865-6052 / e-mail: [email protected]

ARTICLE INFO ABSTRACT Keywords: In recent years, services have become a major factor in the development of a particular economic unit, both in national and global aspect. The intensive diversification of services leads to the emergence of new and still unfilled Services sector, niches in the sector, which are attractive markets for potential sellers and buyers. Expanding human needs Space tourism, stimulates a number of companies and research institutes to seek adequate proposals for the emerging demand. Large-scale projects, Technology developments and transport communications open new horizons in the services market. It is no Classification of services, longer enough to travel around the Earth with a ship, a plane or a balloon. A new need arises - a flight into space. In . this regard, the aim of the research is to present the challenges of supply and demand in the space tourism services.

1. Introduction for manufacturing of the new technologies and Traveling out in the space is an entirely new service, therefore there is a great interest in it. the private sector, which seeks quick returns and It is realistic to say that space tourism is a new their subsequent implementation. This fact repulses challenge in the international markets. The price makes state governments the basic supplier of the service.competition The indisputabletakes a new course.leaders Thein this Cold sphere War areera ofreview space the tourism supply services and demand is defined challenges by the marketin this the USA and the Russian Federation, whose constant mechanism, so the basic purpose of the paper is to space exploration. Even the imposition of sanctions hasand enteredtension aafter phase the of following cooperation annexation in the fieldof the of field.paper It is is to obvious review thatwhether some these circumstances circumstances prevent are Crimean Peninsula have not seriously affected their theonly mass connected usage withof the the service. price Theor depend objective on ofother the 2. Literature Review collaboration in this area. factors.governments Meanwhile, of the acountries significant which percentage have proved of the Space tourism still seems a futuristic phenomenon, financial support for such projects comes from the Since this service is a priority of the more developed tocountries, be the leadersit is also in the the outer sector space with investigations. the newest so there aren’t many scientists writing about this technology, the most qualitative materials and well issue,the 21 probablyst century, duesome to authors the limited start exploitation analyzing the of thisfuture type of ofspace service. tourism. Despite Most this, of at their the beginning predictions of are optimistic and often are connected with fast –of prepared retrieval workers. of the investedThis contributes money, towhich the successmakes development. The conclusions of these forecasts are of space tourism as a service with a big percentage technological capacity without realizing that this it one of the most promising ways for significant based on observations of the rapid development of profits.stage, only Moreover, the great it will prospects create opportunities for entrepreneurs for the realization of even more large-scale projects. At this veryThough soon thewill limitedbe the biggestvolume obstacleof literature to achieving sources, hotels, amusement parks and restaurants in outer massivesome authors supply regularlyin the field review of space the tourism topic services.of space who are already developing large-scale projects like Collins is a scientist whose constant works concern space could be discussed. tourism in their research. For example, Patrick intoAccording consideration to the –financial incomes principles and expenditures, in business, as *Corresponding Author. therewell as are supply two basicand demand. factors, whichOne of must the beessential taken Received 19.05.2020; Received in revised form 26.05.2020; Accepted 05.06.2020 This article is licensed under aCreative Commons Attribution 4.0 International License. e-ISSN: 2687 - 3737 / © 2020 The Authors. Published byAnadolu University. difficulties for the development of space tourism is that a big percentage of the investments are used Danov TOLEHO, 2020, 2(1): 29-35 the aspects of space tourism. Other authors from space tourism. The supply and demand challenges different nationalities who have publications in are considered and a conclusion about the pricing theNadezhda field are Lusitsina, Dirk Gibson, Lazovskaya, Michael Sannikov, Belfiore, Robertetc. It model is derived. The third phase is composed by Citron, Robert Goehlich, Manzoor Khan, Will Knight, logicalconclusion causal for the relations future of between space tourism the theoretical comes up. and practical data, on the base of which the main is noticeable that the main literature sources and study. scientific publications in the field are in English 4.The Space manuscript Tourism can Past be toconsidered Present as a descriptive and Russian language. This is not surprising but rather logical given the huge technological base 3.and Research capacity Process of the United States and the Russian Federation in the field of astronautics. spaceAccording for pleasure to the and Cambridge interest, dictionary,rather than spaceas a tourism1”. On is the defined one hand, as “the space activity tourism of travellingprovides foodinto whether the space tourism services have the future andThe the main factors objective that will of determine this paper its isdevelopment. to examine job Moreover, the manuscript analyzes if there are any andfrom shelter standard for tourism a certain excursion period justwith like the standardfact that prospects space travels to displace the standard tourist vacations. But going into outer space differ travel. On the other hand, space tourism creates comfortemotions and that recreation no other play service no part can in provide. orbital space This tourismCollins’ (2002) services study and “Towards when it could Space be Tourism: possible The to makes space travel a unique service that has no happen. The hypothesis of the 1 paper”, which is claims based that on equivalent. Despite this, there is one more distinctive

Challenge for British Space Policy space tourism - space tourism is limited only within spaceresearch services contains will a becomereview of extremely the history widespread of space difference between the traditional tourism and the even in the next few decades. Furthermore, the pricing of the service is made. the space flight, so the movement of the tourists is 3.1.tourism Sampling on the base of which a conclusion about the limited within the spaceship. At present, according to the limitation of scientific development and technologies,The history spaceof the tourismspace tourism can be is identified not long. withThe space flight only. The first phase is of the research is data collection andthe priceit is fundamentally of each tourist built space on travel descriptive is summarized analyses. first tourist in the outer space is the American The information about the realized space flights and billionaire28th Denis Tito, who rushes out into the cosmosservice sector, with thewhich Russian was developing shuttle “” at an extremely on April inand Table its development.1. The data in The the tablequantitative is collected information by other , 2001. This event marks the beginning of this scientificin the study papers is current within thefor thescope period of space 2001-2009, tourism users and vendors of the service. The hard physical fast pace, given the difficulties that accompany both innature which of the tourist study spaceis practical. flights were carried out. trainingspace tourist and theis Mark high Shuttleworth,prices are the who main reaches obstacles for th 3.2.Although Measures the and paper analysis has a theoretical aspect, the tothe the International growth of space Space tourism Station onbusiness. 25 The second the list of people who have travelled intoof April, the 2002.space of the method of analysis and synthesis of the There are only few more names left to be added to primaryThe second information, phase connected is constructed with onthe theprice base of – Greg Olsen, , , Guy Table 1. List of (Pelt, 2005; Ross, MillsLaliberte, & Toohey, and 2010; Anushe Shiryaevskaya, Ansary, who 2011) is the first woman Name Year Duration of the Flight Flight Type Price 2001 8 days (28.04 – 06.05) Soyuz TMA-32 US$20m Mark Shuttle Worth 2002 11 days (25.04 – 05.05) Soyuz TMA-34 US$20m Greg Olsen 2005 11 days (01.10 – 11.10) Soyuz TMA-7 US$19m 2006 12 days (18.09 – 29.09) Soyuz TMA-9 US$20m 2007 15 days (07.04– 21.04) Soyuz ТМА-10 US$25m Charles Simonyi 2009 14 days (26.03 – 08.04) Soyuz ТМА-14 US$35m Richard Garriott 2008 12 days (12.10– 23.10) Soyuz ТМА-13 US$30m Guy Laliberte 2009 11 days (30.09 – 11.10) Soyuz ТМА-16 US$35m

1https://dictionary.cambridge.org/dictionary/english/space-tourism 30 A Review of Space Tourism Services: Supply and Demand Challenges

of developed countries is in greater resource to travel into space. Anushe Ansary, the owner of a large private business, is an American citizen, but she security.training facilities, However, research smaller institutes countries and can staff also ready get is Iraqi by birth. Her journey began from the United involved in the space tourist project by setting up States to the Baikonur Cosmodrome, which is located in the Republic of Kazakhstanth and was carried out by tothe serve creation the sector. and development An example forof whichthis is thethe capacitycountry thethree Russian days. Federal Agency “”. The space of Bulgaria to provide the so-called “space foods”, in flight began on 18 September 2006 and lasted service is positioned according to the international has traditions. Only because of the achievements of An interesting issue is where the “space travel” scientists from the Institute of Cryobiology and Food cases, there is trade in services which has no national Technologythe world ranking at the for Bulgarian production Academy of special of Sciences, food for classifications of services. In the aforementioned inastronauts the past 3Bulgaria. managed to reach third place in character.travel”, while From inthe theclassification World Trade of the InternationalOrganization Monetary Fund, this service is defined as “personal Another important aspect is connected with the as a tourist trip. It is important to note that in this constructionaccomplish. That of anis why export all producingthe monopolists base whichin the classification, for example, it should be defined is not only very expensive, but also too hard to due to the exceptional novelty of this type of supply. classification there is no subgroup of space tourism, sectorspaceport are bigis so countries money-consuming with huge research initiative, institutes there is and experimental bases. Since the construction of a However,aspect. in the classifications, space travel should are looking for quick returns of the invested capital. belongOn the to other the services hand, the that space have antourism international service no interest in it from the private businesses, which setting up units that are developing large-scale However, more and more large companies are is connected with trade and is characterized by the mobility of both - the seller and the customer. projects to provide space travel services. One of Anushe Ansary is an American; still she uses the the first entrepreneurs investing in space tourism serviceorder for provided the service by to Russia, start operating, not by the the USA, seller since has was the businessman and the founder of Amazon the International Space Station is a Russian one. In -The Jeff company Bezos. In changed 2000 he several founded times the companythe departure , which aims to enable private access to space. to leave the Russian Federation area and to move Origin promises 100 complete missions soon4. toits thevery territory essence, since of the its accomplishment Republic. starts As on a schedules of its first passengers and in 2018 Blue matter of fact, the service is an international one by company. continues in International Space Station, which, However, there are still no private flights with the the territory of the Kazakhstan Republic, and then founded.Another Its large-scale main production investment is related in the with area launch was according to the international law, is a Russian madevehicles, by rocket Elon engines, Musk in spacecraft 2002, when and SpaceXother space was territory,In the world and practice is finally there completed is no example where for it such has started from – the Kazakhstan Republic. Commercial Logistics Services Program at the systems. SpaceX was selected by NASA under the dynamic mobility concerning both the seller and the company is planned for 20215. The approximate consumerand send touristsof a given into service. space. For The the execution moment ofbeing the International Space Station. The first flight of the only the Russian Federation has succeeded to prepare price of the flight will be £40 million and the name service,Ltd2 mediation. which “Roscosmos” The idea of offersspace totourism the consumer, is quite of the first tourist on the list is . ispopular accomplished in Japan. throughThe Japanese the Spacecustomers Adventures accept Meanwhile, the company is launching a number of each innovation very enthusiastically - they not only small satellites to boost 5G networks in 2020. Initially, SpaceX plans to provide high-speed Internet access also seek for worldwide adventures. to residents of the southern United States by the end value the usage of high-technology products, but of 2020. According to the company, launching into service, which provokes interest in the development the orbit of 11 thousand satellites and putting them This marks the beginning of a new era in the into operation will cost 10 billion dollars. This .can corporations prepare themselves to satisfy the be defined as one of the reasons for the delay6 and 3 ofdemand many of other goods economic and services, and social all activities.of which Bigare postponementhttps://www.economy.bg/lifestyle/view/36951/Hrana-za-kosmonavti-Ma of private tourist flights in space - de-in-Bulgaria products of a great intellectual potential. Large 4 corporations are preparing to meet the demand for https://www.cnbc.com/2018/04/18/blue-origin-ceo-bob-smith-be-4-will- be-able-to-launch-100-missions.html goods and services, in the development of which is 5 directed a huge intellectual potential. The advantage https://fortune.com/2020/02/18/spacex-space-tourism-crew-dragon-e- lon-musk/ 6 2 https://www.space.com/spacex-launches-starlink-5-satellites-misses-roc- https://spaceadventures.com/ ket-landing.html 31 Danov TOLEHO, 2020, 2(1): 29-35

the service is associated with many different types of economic, logistical and technological operations. In 2004 the entrepreneur Richard Branson added Extremely important elements are the production to the family of Virgin Group the so called .price of US$200,000.Since its launch, Private the company space tour has operators collected more than 7,000 requests for space flights at a ticket base, highly qualified personnel, compliance with a numberfollows that of accompanying in order to determine factors such the asprice weather it is alreadywhich includes exist. One tourist of the station projects in space,for the where creation each of conditions,necessary to the create health a new status complex of the approach buyer, etc. that It a space station for tourists is the “Las Vegas”3 apartment project, has no analogy in the existing economic theories traveller will be offered a two-room 60m mechanism is the lack of information on the exact with separate kitchen, toilet and bathroom. For and practices. A major difficulty in deriving a clear almostafter 2014 10 research years the shifted company to another has been type tryingof engine to In the short history of space tourism, it is create and test the perfect engine. As the tests failed7. price paid by space tourists so far. The great interest which the companies have in this technology.sector is due Branson to consumers’ expects interest. the first Itflights is accepted in 2020 to noticeabletravelled in that space most more passengers than once. have The made only only tourist one flight. Nevertheless, among them is a man who has definegoods thisand marketservices as offeredthe “seller’s on themarket”, international but that whois a co-founder made a second of trip was and Charles he travelled Simonyi. in the He ismarkets, not the spaceabsolute tourism truth. Inrequires contrast a tovery many precise other wasspace declared two times as anin aabsolute range of record 2 years holder. - in 2007 Simonyi and preparation from its consumers. Many people who 20098. many factors which determine whether a person dream for a journey into space. However, there are From Table 1 it could be concluded an approximate price35 million paid dollars by space and touristsgradually over increases the years. over time. It is isto suitabletake the fortrip a if space s/he istrip. not Even in a goodif the physical considerable and/ obvious that the price varies in the range of 20 to priceor psychological is not an obstacle, condition. the client The will specialists not be allowed from Althoughin the near providing future. spaceUp to toursdate isthe already development a reality, of it istechnology unlikely this does type not of allow service it. to become widespread therequirements, Star Town which(Звездный are: городок) in the Russian Federation have come up with four obligatory • century,Two main it seems conclusions the development can be madeof space by tourism Patrick Collins’ study from 2002. At the beginning of the 21st The height must not be more than 190 cm. It is 30 years. The analysis predicts that the estimated inadmissiblespine for the ratio between the length to the point of widespread use will happen in about • of the legs and the spine to be in favour of the • number of passengers who will use the service in • The mass of the body must not overweight 100 kg 2030 will be 5 million. From the standpoint of time, Heart problems are unacceptable it can be hypothesized that until this moment there StatisticsThere showmust bethat no the silicone group implants of people in themeeting body are no indications the space tours to become a public all these indicators is extremely small. It is an available service for the next 10 years. Even more, by 2030after whichthis target the industry does not is seem stalled to 9be. half reached. At theIn middle order to of reach 2011 such the alast mass space usage, flight it is took extremely place, interesting fact that in 2007 the BBC provided an opportunitytourism” service. for people This happens who do through not have participation significant financial resources to take advantage of the “space importantsaid that there not only are several to supply pros the and service, cons inbut targeting also the 4.1. Pricing of space tourism services issue is related to demand. In this regard, it can be in the TV competition “ Idle”. case, is more special than that of the average tourist. One of the most important features of space aThe potential target buyer.group In of practice, potential the customers user profile, is inmany this tourism is connected with the pricing model of this activities. Potential users of the space travel service timesare individuals smaller than who the are target included group ofin most the rankingsbusiness unusual type of service. It was clarified that the for the richest people in the world. When the definition of space tourism is framed within the limits restrictions and requirements for a certain health ofand space technological flight. In order improvement to carry out spaceare flightrequired. with status are taken into account, the circle of potential private individuals, a lot of investments for scientific

However,determined the due pricing to the factors fact ofthat private the realization space flights of buyers narrows significantly. In this way, the specific are multicomponent so the price cannot be precisely aspects8 of the user group can be summarized. On the https://blitz.bg/svyat/charls-simoni-rekordor-sred-turistite-po-broy-pole- 7https://www.economic.bg/bg/news/11/virgin-galactic-shte-izprati-turis- ti-v-kosmosa_news41571.html ti-v-kosmosa-dogodina.html 9https://spacetourismguide.com/history-of-space-tourism/ 32 A Review of Space Tourism Services: Supply and Demand Challenges other hand, there are certain psychological features connected with people who tend to travel in space tickets more expensive, it is clear that there is a and they are charged with positive potential. demandDespite for inflation such services, processes even though that make the supply space The propensity for risk-taking is usually more is stagnated over the last decade. No matter the serious development of the aeronautical industry is paid to the ranking lists of the richest people in the and the IT sector in recent years, no real space inherent in males. From this point of view, if attention world,of the trip,it becomes which cleargives that a completely they are composed new experience mainly tourism programs and projects have even been of- different males. An from additional everything advantage that one is can the afford exclusivity and discussed. This issue should be seriously analysed, 10. butSomething the number more, of current apart fromscientific the andprice journalistic there are 5. Findings and Discussion publications on the subject is minimal. experience within the boundaries of the planet Earth other important factors influencing the development of space tourism services, so specific attention should Many reasons for assumptions and debates are be paid on them. In the trends for development causedpotential by customers. the fact that Despite the space the list tourist of space flights tourists were ofThe this passage industry through the problemthe atmosphere of environmental creates stopped before 11 years, regardless of the presence of pollution,huge preconditions which is getting for the worse, expansion cannot of be the avoided. ozone is not long, it is noticeable that the cost of space is interesting to note that with each launch of a flights is constantly rising. If a comparison between hole. This is a huge barrier to mass spaceflight. It the last paid ticket for a space flight in 2009 and the approximate price that SpaceX plans for the first space rocket from the Baikonur Cosmodrome, the private flight in 2021 is made, it makes an impression weatherclear and conditionssunny in a matter in the of capital minutes. Almaty There change are too - that the difference in the value is 8.6 million dollars. formany example, unexplored if the effects weather of humanwas cloudy, activity it becomes in outer For a period of 12 years the price is rising, but there are still people willing to fly into space. spaceand pollution. to be able Therefore, to say with the absolute cost of certainty each space that spaceflight will not contribute to climate change environmental protection. 6.flight Conclusion needs to and include Suggestions the cost of research and

development of space tourism are at a very early stage.All The the potential aforementioned of this type conclusions of economic foractivity the

is huge - not only because it is a very attractive service, but also because outer space provides a new andraw materials. unlimited opportunity, both for scientific and researchIn the work,meantime, but also though for possible the constant new sources technical of

tests,main suggestion it is obvious arising that therefrom arethe someanalysis obstacles of the for carrying out regular tourist space flights. The

manuscript is connected with the11 ” debris term refers circling. to Figure 1 shows clear tendency of rising the number of space debris. The “space debris objectscircling the made Earth by and human this makes which them can a be real defined threat for as “space junk”. More than 500,000 pieces of debris are

damaging not only the satellites but the space crafts, too. In this case, the problem of the choice between providingspace tourism better arises. telecommunications for humanity withinIn the the next globe few or decades, providing space opportunities tourism is forunlikely mass

Figure 1. Debris circling the Earth – by years (Tulp, 2018) to become a priority at the expense of providing a 10https://www.businessinsider.com/richest-people-world-billionai- good satellite connection, because at the moment a res-list-2017-11#42-and-41-gerard-and-alain-wertheimer-9 huge11https://www.nasa.gov/mission_pages/station/news/orbital_debris.html part of business and all human activities are 33 Danov TOLEHO, 2020, 2(1): 29-35 dependent on good telecommunications. Until space Renaissance in the Making”. US DOT’s Federal Aviation Administration. Blitz.bg: ,,Чарлс Симони – рекордьор сред туристите по debristo achieve are massnot cleaned usage of up, this the service. space tourism won’t брой полети в космоса” [Charles Simonyi - a record Referencesbe a safe experience and therefore makes it difficult holder among tourists in the number of space flights], 2009: https://blitz.bg/svyat/charls-simoni-rekordor- Belfiore, M. (2007). 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The U.S. Commercial Suborbital Industry (2012): “A Space 34 A Review of Space Tourism Services: Supply and Demand Challenges

Daniel Georgiev Danov is part of the Department of International Economic Relations, University of National and World Economy, Bulgaria. His scientific interests are connected with: International Trade, Economic Psychology; Intellectual Products; Leadership; Ergodic economy. He creates entirely new discipline with no equivalent in the world: Economics of Intellectual Products and Property Rights. Moreover, he is among few people in Bulgaria who teaches a subject based on Economic Psychology: Psycological Factors in International Economic Relations.

ORCID ID : 0000-0001-8865-6052

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