As various industries faced turbulent market conditions in the first seven months of 2023, the travel and tourism sector experienced a significant downturn in deal activity.
According to GlobalData, a renowned data and analytics company, deal activity in this sector decreased by a striking 35.7% YoY from January to July 2023.
A dive into the data from GlobalData’s Financial Deals Database discloses that 438 deals were publicized in the global travel and tourism sphere from January-July 2023, a stark contrast to the 681 deals from the same period in 2022.
Aurojyoti Bose, a Lead Analyst at GlobalData, remarked on the situation, stating, “Unstable economic situations continued to douse the spirit of deal-making in the travel and tourism domain this year. Most prominent markets underwent a severe contraction in deal numbers.”
This contraction is evident in major markets, with the US and UK, leading in deal volume, witnessing their numbers nearly halving. In the US, deals plummeted by 45%, going down from 218 to 120. The UK followed closely, experiencing a 43.8% reduction from 80 deals to 45.
Several countries, including India, Australia, France, South Korea, Japan, The Netherlands, and Italy, also faced declining deal numbers. They recorded YoY decreases of 16.7%, 21.7%, 19%, 5.9%, 60%, 31.3%, and 10%, respectively. In this bleak landscape, China stands out, having achieved a 12% YoY growth in its deal volume.
Region-wise, Europe, Asia-Pacific, North America, the Middle East, Africa, South and Central America all faced setbacks in deal volume during January-July 2023.
The various deal types also didn’t fare well. Mergers and acquisitions (M&A), private equity, and venture financing deals witnessed reductions of 37.5%, 36.8%, and 29.7% respectively in the given period.
Ending on a hopeful note, Bose added, “Despite market upheavals, China’s deal trajectory highlights the underlying strength of the industry. With pockets of potential revealing themselves even in uncertainty, prospects for a revival still shine.”
