The travel and tourism industry has witnessed a massive 41% year-on-year (YoY) decline in deal activity from 475 deals announced during January-May 2022 to 282* during the first five of months of 2023, reveals GlobalData, a data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “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.”
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 YoY declined by 34% and 44%, respectively, during January to May 2023.
Bose continues: “The industry also witnessed a substantial YoY 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, the UK, India, France, Australia and Japan witnessed significant YoY decline of 48%, 48%, 33%, 7%, 29% and 54%, respectively, in deals volume during January to May 2023.
Bose concludes: “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.”
