Space Tourism Business Model The Virgin Galactic Approach by Pilar Alegre
[email protected] Patti Spitler David Wells
[email protected] Executive Summary Virgin Galactic, a division of Virgin Group, is a leading company in the Suborbital Reusable Launch Vehicle (SRLV) industry. The Office of Commercial Space Transportation of the FAA licenses and regulates all space activity within the U.S.A. Virgin Galactic, along with two other companies, has taken advantage of the new regulation and has filed for and received the required permits to provide suborbital space tourism. Virgin Galactic is considered to be a first mover in this field. Virgin Galactic is planning on having its first launch to take customers into space in the year 2008. These customers, according to the research done by the Futron Corporation for NASA fall in a very specific range of people in the U.S.: millionaires that are employed full-time (61%), are married (100%), are mostly men (94%) and with an average age around 54. There is an estimated 5.6 million people that fall within the first requirement of being able to pay for the flight. Of these, only 10% have an interest in space flight and it is estimated that 10% of these will actually take a flight into space. This gives us a potential 56,000 customers eager to fly into space and can afford it. Virgin Galactic is planning on sending 600 of these customers a year into space. The two other companies that have filed for and received permits are Space Adventures and Incredible Adventures.