GlobalData: Travel and tourism sector deal activity down by 33% YoY in Q1-Q3 2023

Thursday, October 12, 2023

A total of 558 deals were announced in the travel and tourism sector globally during the first three quarters of 2023, which was a decline of 33% compared to the announcement of 833 deals during the same period in 2022, according to GlobalData.

An analysis of GlobalData’s Financial Deals Database also revealed all the deal types under coverage, and most of the key markets recorded a considerable year-on-year decline in the announcement of deals during Q1-Q3 2023 compared to Q1-Q3 2022.

For instance, mergers and acquisitions (M&A) deals volume for the travel and tourism sector declined by 34.6% during Q1-Q3 2023 compared to Q1-Q3 2022, while the total number of private equity deals and venture financing deals were down by 29.2% and 28.4%, respectively.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Geo-political tensions, Russia-Ukraine war, inflation, recession fears, and interest rate hikes seem to have been taking a toll on deal-making sentiments in the travel and tourism sector. Resultantly, we have been seeing subdued activity being experienced across several key markets across regions.”

North America witnessed a decline in deals volume by 43.9% during Q1-Q3 2023 compared to the same period in the previous year, while Europe, Asia-Pacific, the Middle East and Africa, and South and Central America regions experienced a decline of 39.7%, 12.7%, 16.7%, and 25%, respectively.

Similarly, key markets such as the US, the UK, South Korea, France, Australia, Japan, the Netherlands, and Canada recorded year-on-year decline in deals volume by 44.4%, 40%, 12.5%, 12.5%, 25.9%, 53.5%, 23.5%, and 35.3% during Q1-Q3 2023,  respectively, compared to Q1-Q3 2022.

Meanwhile, China emerged as a notable exception and experienced growth in deals volume by 21.9% during Q1-Q3 2023 compared to Q1-Q3 2022, whereas deals volume for India remained at the same level.

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