GlobalData, an analytics and data company, has reported a decline in mergers and acquisitions, venture funding, and private equity deals in the Travel and Tourism sector during the first half of 2023.
There were 365 announced deals, a 38.8% decrease compared to the previous year’s 596 deals. In H1 2020, there was a decline in the number of deals across all deal types: M&A, private equity, and venture funding deals declined by 41.6%, 33.3%, and 30.4% respectively.
Aurojyoti BOSE, GlobalData’s Lead Analyst, stated that “Multiple global economies have experienced distressed deals in the travel sector.” The deal activity is affected by several factors, including rising interest rates and looming fears of recession.
The number of travel and tourism deals in Europe was the largest globally, followed by Asia-Pacific and North America.
While Europe saw a 46% decline YoY in the deal volume, Asia-Pacific and North America as well as Middle East, Africa, South and Central America and South America experienced a decline of 19%, 47.6% and 20% respectively during H1 2020 compared with H1 2012.
In H1 of 2023, several key markets saw a slowdown in the travel and tourism industry deal volume compared with H1 of 2022. In H1 2020, deals in the US, UK, India Australia, France South Korea Japan and Spain decreased by 47.7% and 44.8% respectively.
China, however, was a noteworthy exception and experienced an 18.2% increase in announcements of travel and tourism deals during H1 2020 compared with H1 2012.
