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Travel and Tourism Industry Deal Activity Down by 36.2% YoY in January-August 2023

The global travel and tourism industry experienced a notable decline in deal activity during January-August 2023, marking a substantial year-on-year (YoY) decrease of 36.2% compared to the same period in 2022. This decline spanned various deal types, including mergers and acquisitions (M&A), private equity, and venture financing, with economic uncertainties and geopolitical tensions playing a significant role in shaping this trend, finds GlobalData.

An analysis of GlobalData’s Financial Deals Database reveals that a total of 482 deals* were announced in the global travel and tourism industry compared to 756 deals announced during January-August 2022. The volume of M&A deals declined by 37.8% while the number of private equity and venture financing deals declined by 38.1% and 30.8% YoY, respectively.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Economic uncertainties including interest rates hikes, rising inflation, looming recession fears coupled with geopolitical tensions seem to have made investors cautious, which led to the significant decline in T&T deal activity across many countries.”

In fact, several key markets witnessed double-digit decline in deals volume during January-August 2022 compared to the same period in 2022. For instance, the US, the UK, Australia, France, Japan, the Netherlands, and Canada witnessed deals volume decline by 47.2%, 45.3%,20.8%, 13.6%, 62.5%, 31.3% and 33.3% YoY, respectively, during January-August 2023.

India and China too registered 6.3% and 3.3% decline in deals volume during January-August 2022 compared to the same period in 2022.

Bose concludes: “Despite the challenges, its ability to adapt and recover has been a hallmark of the travel and tourism industry, and this resilience is likely to drive a resurgence in deal activity when the global landscape stabilizes.”

*Comprising mergers & acquisitions, private equity, and venture financing deals.

(Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain). 

Posted by on September 19, 2023.

Categories: Development

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