Deal making activity in the travel and tourism sector has been slowing this year. The sector recorded a 10.9% YOY decrease in the number of merger & acquisition (M&A), private equity (PE) and venture financing deals announced globally during January-May, according to data and analytics company GlobalData.
However, despite the decline, PE deals have been improving. European markets have also been witnessing growth, highlighting new opportunities for strategic investments, the study added.
The total number of deals announced in the travel and tourism sector worldwide fell from 321 during January-May 2023 to 286 during January-May 2024, showed an analysis of GlobalData’s Deals Database.
The volume of M&A and venture financing deals fell 5.7% and 28.4% respectively in January-May 2024, while PE deal volume improved by 9.1% YOY.
Deal-making sentiments have been impacted in many sectors, including travel and tourism, said Aurojyoti Bose, lead analyst at GlobalData. The impact was felt in most regions and multiple key markets. For example, deal volume in North America, Asia Pacific, Middle East and Africa and South and Central America regions posted a YOY decline of 32.3%, 8.2%, 25% and 40%, respectively, during the review period.
The only exception was Europe, which recorded a YOY growth of 13.4% between January and May.
Key global markets — the U.S., China and Australia — also registered a drop in deal volume (declining by 30.4%, 52.2% and 15.4%, respectively), the study observed. On the other hand, some markets such as the U.K., India, South Korea and Germany witnessed some improvement in deal activity.
“Despite the overall decline in deal activity in the travel and tourism sector, the improvement in markets like Europe, the U.K., India, South Korea, and Germany demonstrate the sector’s adaptability and potential for strategic investments,” Bose said. Investors should utilize these emerging opportunities to navigate the landscape and drive future growth, he added.
