Deal activity in the travel and tourism sector has slowed this year, with the number of mergers and acquisitions (M&A), private equity (PE) and venture financing deals announced globally in the sector falling 10.9% year-over-year from January to May, according to data analytics firm GlobalData.
But despite the decline, PE deals are improving, with European markets also experiencing growth, highlighting new opportunities for strategic investments, the survey added.
The total number of deals announced in the travel and tourism sector worldwide fell from 321 in January-May 2023 to 286 in January-May 2024, according to an analysis of GlobalData’s deal database.
The total number of deals announced in the global travel and tourism sector fell from 321 in January-May 2023 to 286 in January-May 2024.
From January to May 2024, M&A and venture finance deal volumes fell 5.7% and 28.4%, respectively, while PE deal volume increased 9.1% year-over-year.
GlobalData principal analyst Aurojyoti Bose said deal enthusiasm has declined across many sectors, including travel and tourism. The impact has been felt across most regions and several major markets. For example, deal volumes in North America, Asia Pacific, Middle East & Africa, and Latin America fell 32.3%, 8.2%, 25%, and 40% year-over-year, respectively, during the study period.
The only exception was Europe, which recorded year-on-year growth of 13.4% between January and May.
The survey found that major global markets such as the United States, China and Australia also saw declines in trading volumes (down 30.4%, 52.2% and 15.4% respectively), while markets such as the United Kingdom, India, South Korea and Germany saw slight improvements in trading activity.
“Despite an overall decline in deal activity in the travel and tourism sector, improvements in markets such as Europe, the UK, India, South Korea and Germany demonstrate the sector’s adaptability and potential for strategic investment,” Bose said. Investors should take advantage of these new opportunities to weather the situation and drive future growth, he added.
