Travel and tourism deals witnessed a 10.9% year-on-year (YoY) decline in number, encompassing mergers and acquisitions (M&A), private equity (PE), and venture financing, announced globally during January-May 2024.
Despite this downturn, PE deals showed improvement, and European markets showed growth, highlighting new opportunities for strategic investments, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database revealed that the total number of deals announced in the travel and tourism sector globally fell from 321 during January-May 2023 to 286 during January-May 2024.
Meanwhile, the number of M&A and venture financing deals declined by 5.7%, and 28.4%, respectively, during January-May 2024 compared to January-May 2023, whereas private equity deals volume showcased 9.1% YoY growth.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Deal-making sentiments have taken a hit across several sectors, including travel and tourism. The impact was felt in most of the regions and several key markets.”
For instance, deals volume for North America, Asia-Pacific, Middle East and Africa and South and Central America regions recorded YoY decline of 32.3%, 8.2%, 25% and 40%, respectively, during the review period. However, Europe emerged as an exception and showcased a YoY growth of 13.4% in deals volume during January-May 2024.
Meanwhile, several key global markets including the US, China and Australia saw respective deals volume declining by 30.4%, 52.2% and 15.4% during January-May 2024 compared to during January-May 2023. However, some markets such as the UK, India, South Korea and Germany managed to see some improvement in deal activity.
Bose concludes: “Despite the overall decline in deal activity in the travel and tourism sector, the improvement in markets like Europe, the UK, India, South Korea, and Germany demonstrate the sector’s adaptability and potential for strategic investments. Investors should seize these emerging opportunities to navigate the evolving landscape and drive future growth.”
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.
