Keywords

1 Introduction

Space tourism, once considered a distant dream, has become a reality in recent decades. Advances in space technology, particularly following the successful excursion of Yuri Gagarin, the first man in space, by Russia in 1961 and Neil Armstrong's moonwalk in 1969, have led to significant changes in the industry. Today, space has become a battleground for countries competing for supremacy in space exploration and commercial development. The potential for business opportunities in various sectors, such as telecommunications and space tourism, has made space an attractive destination for entrepreneurs and investors (Friel, 2020; Loizou, 2006). In 2001, Dennis Tito made history when he became the first “space tourist,” initiating a shift in space tourism from scientific exploration to commercialization. With the development of private space companies such as SpaceX and Blue Origin, space tourism is no longer a pipe dream but a reality becoming accessible to more and more consumers through commercialization. These private companies have been instrumental in driving the market development of space tourism, not only through innovations in space technologies but also through collective efforts to bring space tourism into the public discourse.

In tourism scholarship, discussions on space tourism (also discussed as space travel and astrotourism) began as early as 1990 in the seminal works of Ashford (1990) and Crouch (2001). These works focus on a futuristic perspective toward space tourism (Prideaux & Singer, 2005), outlining the motivations and experiences of space tourists (Cater, 2010), consumer attitudes toward space (Chang, 2017), and the sustainability of space tourism (Peeters, 2018; Toivonen, 2022). While there is growing research fervor on space tourism, the scholarship faces epistemological constraints regarding the availability of empirical data. Many of the published works focus on discursive analysis and conceptualization with limited explorations on the sociological shaping of this emerging market.

This chapter argues that studying the sociological shaping of space tourism will allow us to better understand the nature of this market, the socio-political forces, and the power dynamics that have shaped it. The market for space tourism is constantly evolving, with factors such as technological advancements, government regulations, and public opinion impacting how the market functions and develops. By integrating institutional theory and performativity theory, this paper aims to provide a sociological account of how the space tourism market is shaped.

On the one hand, institutional theory offers a perspective through which we can decipher the complex web of formal and informal rules, norms, and beliefs that shape the behavior of institutional actors in the space tourism ecosystem. Specifically, the regulative, normative, and cultural-cognitive pillars and their interplay provide an important structural foundation for the market (Scott, 1995, 2008). On the other hand, performativity theory (Callon, 1998) which focuses on realizing economic practices through discourse and action, offers valuable insights into how the market for space tourism is constituted and sustained. In space tourism, the performative act of marketing space experiences alongside the technological demonstrations of successful space missions serves to construct and reinforce the market. Taken together, the integrative view serves to contribute to our understanding of space businesses.

2 Theoretical Foundations

2.1 Space Tourism

Space tourism is an up-and-coming field in the tourism industry. As early as the 1980s, with scholarly discussions on the prospects of space tourism. While excursions into space were reserved exclusively for government projects, scientists in the field of tourism have explored the possibility of space becoming a commercial reality (Loizou, 2006). The research and industry enthusiasm for space tourism is largely due to the realization of space fantasies that were once far-fetched, as well as the immense economic gains associated with the development of space tourism. Space tourism represents a novel niche market that has the potential to revolutionize the way people perceive and experience travel. Extant research on space tourism follows three main themes: consumer-related phenomenon; environmental impacts and sustainability issues related to space tourism and legal and policy analysis.

Research on consumer behavior in space tourism focuses on understanding the motivations, attitudes, and decision-making processes of individuals interested in space tourism as a leisure activity (Chang, 2017; Crouch et al., 2009). For example, Chang (2017) examines the relationship between consumer attitudes toward space tourism and the development of technological innovations in space tourism in Taiwan and found that hedonic and social innovations were associated with consumers’ positive attitudes toward space tourism. This area of research focuses on factors such as travel motivation and the role of perceived risk and safety concerns on willingness to participate in space tourism. The main practical implications of this research are how it contributes to a better understanding of consumer behavior in space tourism for future marketing strategies.

The second area focuses on the environmental impact and sustainability issues associated with space tourism. Specifically, it deals with carbon emissions from spacecraft launches and space debris. Peeters (2018) argues that “space tourism will not be part of sustainable tourism” as it can exacerbate social and environmental impacts. Similarly, Frost and Frost (2022) discuss the paradox of space tourism. While space tourism operators market space as a natural wonder untouched by human development, this form of travel directly impacts Earth, exacerbating the ethical dilemma of space tourism. The reality of space tourism is that this form of travel, while fascinating, directly reverses the decades of sustainability efforts that the tourism industry has committed to.

Finally, the analysis of the current regulatory framework and legal challenges in space tourism is an essential area of research (Polkowska, 2021). Issues related to the ethical use of space technologies, the environmental impact, and the safety of operations emphasize the need for governance and ongoing policy discussions. Marsh (2006), for example, warns of the medical implications of space tourism. Despite decades of research on the effects of space tourism on the psychological and physiological health of travelers, there still needs to be more understanding of how space tourism can affect the human body. Spector (2020) discusses the acceptable level of risk in space tourism and points to the uncertainty surrounding the industry's development. Given the limited number of space tours undertaken to date, the current regulatory framework for ethical and safety issues is inadequate. The unpredictable nature of space tourism also means that the legal framework is only likely to be updated when disasters occur. Much more research remains to be explored on the liability of space tourism and the various risk factors associated with such an activity.

2.2 Sociological Shaping of Market

Scholarly attempts to understand how markets emerge, transform, change, and sometimes fail are crucial to understanding economies and markets. These studies have helped understand various market dynamics aspects, with two dominant approaches. Economists argue that markets are driven by economic factors such as supply and demand. Sociologists, conversely, argue that markets are deeply embedded in social processes and institutions, and various social forces shape markets (Fligstein & McAdam, 2012). Central to the thesis of the sociological making of markets is the decentralization within a market—from the rationally organized market at the top-down level to the recognition of the multilayered and multifaceted mechanisms that characterize modern markets. In other words, the traditional view of markets as purely economic entities, in which supply and demand are the key factors determining outcomes, has been challenged. Instead, scholars, particularly from economic sociology, have shown that social and cultural factors also play an important role in shaping markets.

Although different terms have been used—market shaping (Nenonen et al., 2021), market emergence (Martin & Schouten, 2014), market development (Wüstenhagen & Bilharz, 2006), and market configuration (Storbacka & Nenonen, 2015)—these works are generally concerned with understanding the sociological structuring of markets. Fundamentally, the sociological shaping of markets is a field of research that looks at how societal forces and social structures influence market dynamics. Previous research has discussed the sociological shaping of markets along five lines: (1) culture, (2) power relations, (3) institutional interplay, (4) social networks and (5) performativity.

To elaborate further, culture shapes economic behavior. The central argument of this approach is that societies have unique cultural values, beliefs, and practices that influence behaviors such as consumer preferences and market demand (Swidler, 1986). In Economic Lives, Zelizer (2013) argues that these actions are deeply embedded in socio-cultural contexts and relationships. Adopting a cultural perspective on how markets emerge allows us to capture the nuances that differentiate one market from the other and raises the level of discourse when discussing economies (Guiso et al., 2006).

Secondly, power relations influence how markets are maintained and structured. In capitalist societies, “economic capital is transformed into symbolic capital through the exercise of power” (Bourdieu, 1984). Power relations play a significant role in the sociological shaping of markets through various aspects, such as market competition, pricing strategies, and access to resources. Within capitalist economies, those in power shape how the market works—such as who is permitted to produce, the production of goods, access to resources, the organization of labor, and how goods are marketed and sold (Fligstein, 2017; Reuss, 2020). In many cases, dominant actors or organizations exert their power to control market outcomes. While this approach highlights the influential role of power relations in shaping markets, it does not consider the role of institutions (of different levels) as well as socio-cultural dispositions in shaping market dynamics, which can significantly affect the exercise of power by dominant actors. Additionally, it does not explore the potential for resistance and contestation by actors not in positions of power, which can also shape market outcomes (e.g., Hietanen & Rokka, 2015).

A related area looks at how social network’s structure market interactions. Granovetter (1973) introduced the concept of “embeddedness,” which states that “social ties act as conduits for information about employment opportunities and lend credibility to claims about products or services.” Social networks profoundly impact how markets are shaped by facilitating the flow of information, resources, and opportunities between individuals and organizations (White, 2001). He argues that “the structure of relationships between actors influences their ability to cooperate effectively in the pursuit of mutual gain” (Granovetter, 1985, p. 488). Researchers following this network approach focus on deciphering the social structures within the market and the relational aspects of market interactions, such as resource dependence (Fligstein & Dauter, 2007). The related idea of the market as a “configuration of actors” argues that the market is configured and enacted “through which the actors use their relational power” (Hietanen & Rokka, 2015, p. 1566). Baker and Nenonen (2020) propose the notion of “collective market work,” exemplified by the screwcap closure on New Zealand wine, which proceeds through three stages: coalescing, legitimizing, and using market clout. This process gradually empowers and emboldens small groups to influence larger players and market gatekeepers.

Fourth, institutional factors shape the rules and regulations of the market. DiMaggio and Powell (1983) argue that “institutions are the rules of the game in a society, or more formally, the humanly devised constraints that shape behavior.” Institutional forces such as governance and regulations, formal and informal norms, and professional standards shape market practices. Fligstein and McAdam (2012) emphasize that institutional processes play a central role in shaping markets by influencing the rules, norms, and cultural practices that govern economic interactions. Neo-institutional theorists focus on how institutional pillars (regulative, normative, and cultural-cognitive) collectively shape, maintain, and sometimes disrupt market dynamics (Lawrence & Suddaby, 2006; Scott, 2003).

The final direction looks at the performativity of economics (Callon, 1998) and views the market as the outcome of deliberate logic and rational calculations to achieve their respective economic interests. While they do not refute the importance of sociology, performativists argue that “sociology’s goal should be to understand how they are produced,” ultimately, “economics perform the economy” (MacKenzie & Millo, 2003, p. 108). Performativity theorists have criticized the extant sociological work on markets for neglecting how markets are structured by the interaction of economic activity with disruptions such as new technology.

The sociological approach to understanding how markets are formed provides a comprehensive framework beyond the economic determinism of supply and demand. It emphasizes the significance of social structures and processes, cultural norms, power dynamics, institutional frameworks, and the performative aspects of economics in shaping markets. Nevertheless, these are often divergent (though ironically overlapping) approaches, each with their own conceptualizations and beliefs, leading to incomplete narratives about how markets are shaped (Fligstein & Dauter, 2007). An integrated approach that considers both sociological and economic perspectives may offer a more holistic understanding of market dynamics, recognizing the complex interplay between social structures and economic activities in shaping markets. This integrated perspective could better address the limitations of focusing solely on either sociological or economic factors, paving the way for a more nuanced understanding of how markets emerge, transform, and operate within broader societal contexts.

To this end, I consider both institutional and performative approaches to be complementary in exploring the sociological shaping of the space tourism market. Primarily, institutional theory recognizes the temporal aspects of the market, particularly in terms of its historical evolution and technological changes. Parenthetically speaking, institutions are not static concepts; they evolve along with shifts and evolvements within the social context. Nevertheless, institutional theory recognizes that market shaping is an ongoing process influenced by both external pressures and internal organizational responses. Institutions can be both constraining and enabling forces for organizations operating within a market (Lawrence & Suddaby, 2006). External pressures such as technological advancements can disrupt existing market structures, prompting organizations to adapt their strategies and practices.

To the extent that institutions attempt to stabilize a market, the institutional arrangement is seen as temporary and susceptible to disruption and disorientation by technological change. Technological innovations are performative—they are deliberate economic calculations and strategies designed to advance the economic interests of particular, powerful actors. In the financial sector, for example, new financial products such as FinTech challenge the parameters of the traditional financial market and how market actors engage in new institutional processes to stabilize the market (Alt et al., 2018; Fligstein & Dauter, 2007). Introducing new technologies forces market players to adopt isomorphic practices to remain competitive (Du, 2018). Other findings, including work on institutional entrepreneurship, also emphasize how actors challenge the prevailing norms and rules within a market to initiate market change (Hargadon & Douglas, 2001). Thus, the combination of institutional and performative approaches provides a comprehensive understanding of the sociological shaping of the space tourism market. The following section delves into the emergence of the space tourism market by drawing on neo-institutional theory and performativity perspectives.

3 Emergence of the Space Tourism Market

This chapter argues that the shaping of the space tourism market is an outcome of institutional work and performative economics enacted through the neoliberal market system, where competition and technological advancements influence the institutionalization of the market. By integrating these two perspectives, we can explore the dynamic interplay between economic practices and institutional structures in the formation and evolution of markets. The first part of the analysis focuses on neo-institutional theory, particularly the three institutional pillars: regulative, normative, and cultural-cognitive, and outlines how they institutionalize the space tourism market. The second part introduces the performative aspect of space tourism (Fig. 1).

Fig. 1
An illustration of the space tourism market, focusing on the neoliberal performative aspects such as regulatory frameworks, market competitiveness, economic outlook, technological innovation, normative influences, and cultural cognitive factors.

The sociological shaping of space tourism market

3.1 Institutionalizing the Space Tourism Market

Neo-institutional theory is a sociological perspective that seeks to explain how institutions shape social behavior and outcomes (Yang et al., 2022). It emphasizes the importance of formal and informal rules, norms, and values in shaping individual and organizational behavior. The theory posits that those three pillars—regulative, normative, and cultural-cognitive—work together to maintain stability and conformity within social systems.

3.1.1 Regulative Pillar

The regulative pillar comprises the formal rules and regulations that govern operations and activities within a particular industry. Actors with authority and legislative powers, such as government agencies, create and enforce these regulations (Scott, 2001). The main purpose of regulations is to ensure compliance with international laws, licensing requirements, and safety standards. In space tourism, for example, regulations are crucial in creating a legal framework for developing, using, and monitoring space technologies. Regulatory frameworks encompass a range of formal rules, including international treaties and national space laws. The regulation of space, the space economy, and space tourism are a complex web of international treaties, national regulations, and industry standards that ensure that space activities are carried out in the interests of the various stakeholders (see Table 1).

Table 1 Selected list of governing bodies and space law

The regulative pillar is a decisive factor in shaping the development and growth of markets. It establishes the regulatory framework that guides companies in their activities, ensuring that they operate within ethical boundaries and that consumers are protected from potential harm. In the space industry, for example, both NASA and the CNSA have the important role of regulating space activities, including commercial ventures, in their respective countries. These agencies are important in determining how commercial space activities can be conducted. They assess the risks and costs associated with such ventures and set guidelines and regulations that industry players must adhere to. They are also empowered to enforce compliance and ensure that all stakeholders, including industry players and consumers, follow the rules. In this way, the regulatory pillar ensures a level playing field for all market participants, which promotes fair competition and protects the interests of all stakeholders.

3.1.2 Normative Pillar

The normative pillar in any given social structure is important, as it sheds light on the various social norms and expectations that guide social behaviors and establish standards (DiMaggio & Powell, 1983). While the regulative pillar relies on formal rules and authoritative power to ensure compliance, the normative pillar operates through informal rules and social norms that are not legally binding but can still significantly impact behavior. This is particularly important in the space tourism industry, where standards ensure companies act responsibly and ethically. These norms guide the setting of professional and safety standards, and although they are not legally enforceable, companies are likely to adhere to them to avoid resistance and public backlash. It is worth noting that the normative pillar alone is not always sufficient and, in certain cases, is complemented by the regulatory pillar. Nevertheless, norms can effectively encourage responsible behavior and ensure that social structures operate fairly and equitably.

Some examples of the normative pillar would be industry standards, popular culture, consumer culture, and the sustainability discourse. To illustrate, the rise of the sustainability discourse in tourism (including space) reflects the increasing importance of environmental and ethical considerations in tourism activities. Stakeholders, including customers, governments, and businesses, are increasingly concerned about the environmental impact of space launches, ethical considerations in space exploration, and the equitable distribution of space-related benefits. These normative expectations shape companies’ strategies, including their commitment to sustainability, ethical business practices, and social responsibility (Toivonen, 2022).

Similarly, the consumer culture within a society influences how the norms for the production and consumption of space tourism are shaped. In societies with a stronger emphasis on ethical consumption, space tourism can present an ethical conundrum, as space debris and pollution can lead to negative environmental consequences (Hoffman & Ventresca, 2002).

3.1.3 Cultural-Cognitive Pillar

The cultural-cognitive pillar plays a crucial role in shaping public opinion and influencing the behavior of industry stakeholders in the context of space tourism. It is important to note that cultural-cognitive factors can either facilitate or hinder the industry's success. If the cultural narrative around space tourism is predominantly negative, this could lead to a lack of public support and, ultimately, hinder the industry's growth. Conversely, if the cultural narrative emphasizes the potential benefits of space tourism, such as its potential to drive scientific discovery and exploration, it could encourage companies to invest in research and development in these areas, leading to significant advancements in the field.

The cultural-cognitive pillar would also include the cultural perception of space exploration. This perception is influenced by factors such as historical achievements in space exploration, media portrayal, national pride, and personal beliefs about technological innovation. For example, popular movie series such as Star Wars and Star Trek have contributed to the global fascination with space exploration (Ceuterick & Johnson, 2019). These various cultural-cognitive elements can shape consumer demand and influence support for investment in space tourism ventures and general enthusiasm for space-related activities.

Taken together, the three pillars are crucial for shaping the space tourism market. Regulations ensure safety and compliance in the industry, while social norms promote ethical practices and responsible behavior. In addition, understanding cultural-cognitive factors helps businesses cater to different consumer preferences. These institutional pillars work together to institutionalize a viable industry. While these three pillars of institutional theory provide a useful framework for understanding the complex interplay of factors that shape the space tourism industry, they do not consider the performative aspect of any market (Fig. 1).

3.2 Performativity of the Space Tourism Market

The concept of performativity implies that economic activities are descriptive and performative. Performativity economics suggests that markets are not naturally occurring phenomena but are actively constructed and shaped through practices and calculations which fulfill certain functions to shape and maintain the market. Technological progress is seen as a performative act planned by market participants to reshape existing markets or create new ones. According to Callon (1998), technological advances reinforce the performative nature of the economy by introducing new opportunities for competition and disrupting existing market dynamics. For example, the rise of online marketplaces such as Amazon has changed consumer behavior and, more importantly, altered the dynamics of traditional retailing and reshaped the retail market. Similarly, technological advancements in smartphones also helped create new gig economies and ways of consuming through Uber and Airbnb (Srnicek, 2017). Performative economics is closely intertwined with technological advancement. Technology shapes economic practices, creates new possibilities, and challenges existing norms.

Performative economics is particularly associated with the neoliberal market mechanism—an economic and political ideology that decentralizes market dynamics from the state to market participants. The most important aspects of neoliberalism include free market mechanisms, competition, and international trade. In order to compete, companies rely on various practices such as investment and technology development. The neoliberal performative market, which includes technological innovation, market competition, and economic prospects, co–evolving with the existing institutional structures to shape the market for space tourism. For example, market competition drives innovation, affects prices, and shapes the variety of space tourism experiences offered to consumers, while economic factors such as fuel prices and production costs influence the development of the market.

3.3 An Integrated View of the Space Tourism Market

The integration of performative economics and institutional theory sheds light on how markets are shaped by the feedback loop between economic performativity and institutional adaptation. Economic theories, when put into practice, can become institutional norms, influencing future economic actions and potentially leading to the creation of new institutional structures. This cyclical process (Fig. 1) illustrates how markets are not fixed entities but are continuously built and reconstructed through the interaction between performative actions and institutional structures.

Furthermore, the temporal and spatial aspects of space tourism require a flexible and dynamic approach to institutional adaptation. For instance, the technology and infrastructure required for space tourism are continuously evolving, and institutional structures must keep up with these changes to ensure the industry's sustainability. Additionally, space tourism is a global industry that involves multiple jurisdictions, and therefore, institutional structures must be adaptive and responsive to the different legal and regulatory environments in which it operates. The integration of performative economics and institutional theory highlights the dynamic and continuously evolving nature of markets, and how institutional adaptation is critical to supporting economic performance.

4 Conclusion

Understanding the sociological shaping of the space tourism market essentially reveals the complex interplay between institutional forces and economic performativity. As discussed in this paper, various institutional pillars such as the regulative, the normative and the cultural-cognitive pillar have intermingled with neoliberal market performativity and shaped the development of space tourism. The emergence of the space tourism market is not a natural phenomenon and does not take place in a vacuum but is continuously shaped by changing social norms and expectations. The future development of space tourism will depend not only on technological possibilities and economic models, but also on how well it can be reconciled with evolving societal benefits. Nevertheless, future space tourism research must also consider the socio-political forces and power dynamics that influence market development. This includes examining the power dynamics within the space tourism market, geopolitical interests, various space laws, and changes in public opinion on space tourism. The power dynamics, particularly between private space companies and regulators and between wealthy consumers and broader societal interests, are critical to the development of future space tourism. Furthermore, with the growing success of space tourism and the portrayal of space tourists in the media, societal reactions and perceptions toward this form of tourism will evolve and require changes to the existing institutional structure.

With the continuous development of space tourism and the commercialization of space, future research could go in two directions. First, the study of ethical consumer behavior in the context of space tourism represents a unique and emerging field where environmental sustainability, social justice, and the moral responsibility of consumers and providers intersect. Future research could, for example, investigate corporate social responsibility in space tourism, such as how companies deal with environmental, social, and ethical issues. Future research could also assess existing CSR practices, examine frameworks for responsible business behavior in unregulated environments such as space, and propose guidelines for sustainable and equitable growth of the space tourism sector. Second, understanding the commercialization of space also means understanding how branding works in the space industry. Research on branding in the space tourism industry could include a multifaceted examination of how space tourism companies cultivate their identity, differentiate themselves in the marketplace, and connect with potential customers.