Skip to main content

The Soaring Costs of Creating Hot Air Balloons

Rising materials and labor inflate the price of this classic ride.


  • Entertainment & Travel
  • Entrepreneurship
  • Business Law & Economics
  • Manufacturing & Packaging
  • Operations Management
  • Product Development
  • Transportation
  • Chapter 1 Taking Risks & Making Profits
  • Chapter 3 Globalization
  • Chapter 6 Entrepreneurship
  • Chapter 9 Production & Operations Management
  • Chapter 14 Product & Price
  • Chapter 15 Distribution
  • Video
  • Blog
  • Understanding Business
  • Higher Education

Large hot air balloons can cost as much as $160,000, requiring huge amounts of high quality materials and lots of time. This video focuses on the Spanish company Ultramagic Balloons, which employs large sewing teams as well as engineers to produce flawless balloon-based aircraft. 

Questions:

  1. Why does Ultramagic Balloons prioritize quality control throughout its production process? 
  2. What are some factors that contribute to the high costs of hot air balloons?
Author: NickelsMcHughMcHugh