Travel and Tourism Industry Deal Activity Down 41%

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(16/06/23)
 According to GlobalData, a leading data and
analytics company, the travel and tourism industry has witnessed a 41% year-on-year (y-o-y)
decline in deal activity from the 475 deals announced during
January-May 2022 to 282 during the first five of months of 2023.

All the deal types under coverage registered
decline in volume.

For instance, merger and acquisitions (M&A)
deals volume decreased by 43%, while the number of venture
financing deals and private equity deals y-o-y declined by 34% and
44%, respectively, during January to May 2023.

“The decline in deal activity in the industry indicates
dampened sentiments and cautious approach of investors. The
ongoing uncertainties and impact of the geopolitical tensions,
inflation and recession fears have forced deal makers to adopt a
more conservative approach,” said Aurojyoti Bose, Lead Analyst at
GlobalData. “The industry also witnessed a substantial y-o-y decline in deal activity across most of the
regions worldwide during the period.”

North America experienced a decline of 48% in
deals volume during January to May 2023 compared to the same
period during the previous year while Europe, Asia-Pacific and
South and Central America regions registered decline of 49%, 27%
and 36%, respectively.

Meanwhile, deals volume for the Middle East
and Africa region remained unchanged.

The US, UK, India, France, Australia and Japan
witnessed significant y-o-y declines of 48%, 48%, 33%, 7%, 29% and
54%, respectively, in deals volume during January to May 2023.

“On the other hand, easing of
travel restrictions seems to be encouraging Chinese travelers. As
a result, China stood out as a notable exception and registered a
19% YoY growth in the number of deals announced during the
period,” added Bose.

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