The profound rise of commercial space tourism marks a paradigm shift in the economics theory, as it defies current patterns of market evolution that modelling has foretold. This chapter investigates the peculiar dynamics of space tourism, highlighting the unique combination of its capital intensity, technological complexity, and regulatory uncertainties. Drawing from case studies of industry titans, including SpaceX, Blue Origin, and Virgin Galactic, the authors detail how innovation-led strategies—vertical integration and reusable rockets, among others—challenge government-dominated space industries. The paper points out that traditional models, such as Porter’s Five Forces or Schumpeterian destructive creation, do not explain extreme market circumstances well. Instead, it advocates for a hybrid theoretical framework combining interdisciplinary insights from aerospace engineering, environmental science, and behavioural economics. Significant insights suggest a trilemma involving accelerating technology, imperatives for safety, commercialization, and the environmental hazards of rocket emissions and orbital debris. The chapter explores pathways to economic sustainability, such as cross-subsidization and luxury pricing, and future scalability via cost-reduction innovations. The socio-economic ramifications also present practical implications for policymakers and industry stakeholders, highlighting the necessity of adaptive regulations and global cooperation to navigate the evolving landscape. More profoundly, space tourism becomes a laboratory for re-conceptualizing market theory across high-barrier sectors related to sustainability and cross-field economic modelling in extreme settings.