Global travel and tourism sector deal activity fell by 12.6% YoY during January-August 2024, finds GlobalData

A total of 456 deals (mergers and acquisitions (M&A), private equity and venture financing) were announced in travel and tourism sector for the period of January to August 2024, which was a year-on-year (YoY) decline of 12.6% in deal volume, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Deals Database revealed that the travel and tourism sector saw the announcement of a total of 522 deals during January-August 2023.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The travel and tourism sector’s deal activity reflects a cautious approach by deal-makers even though the regional and country-specific data reveal a mixed picture with majority experiencing contraction.”

During January to August 2024, North America, Asia-Pacific, and South and Central America regions reported YoY decline in deals volume of 32.9%, 17.9%, and 21.4%, respectively, whereas the number of deals for the Middle East and African region mostly remained at the same levels. However, Europe saw a 12.5% improvement in deal volume during January-August 2024 compared to January-August 2023.

Similarly, the US, China, Australia, and France experienced YoY decrease in deal volume by 32.9%, 44.1%, 25%, and 47.6%, respectively, during January-August 2024. However, deal volume in the UK, South Korea and India mostly remained at the same levels, whereas Japan, Germany and Spain witnessed improvements.

Meanwhile, the number of M&A deals and venture financing deals YoY decreased by 9.2% and 25.8%, respectively during the review period. Private equity deal volume, on the other hand, remained flat.

Bose concludes: “This period of reduced deal flow could signal an impending shift, with potential for strategic realignments and targeted investments as the sector adapts to new post-COVID-19 pandemic realities and evolving consumer preferences. Deal makers should remain attentive to the emerging trends and opportunities that may drive future growth in this dynamic sector.”

The article Global travel and tourism sector deal activity fell by 12.6% YoY during January-August 2024, finds GlobalData first appeared in TravelDailyNews International.