GlobalData says its analysis shows that M&A deals dropped by 6.8 pc
Data and analytics company GlobalData, has reported a decline in deal-making activity within the travel and tourism sector for the first three quarters of 2024.
A total of 519 deals, which encompass mergers and acquisitions (M&A), private equity, and venture financing, were announced from January to September 2024.
The statement adds that this marks an 11 pc decrease from the 583 deals made in the same period in 2023, indicating a global slowdown in travel and tourism sector deals.
GlobalData says its analysis shows that M&A deals dropped by 6.8 pc, while venture financing deals saw a more dramatic decline of 25.2 pc during the same period. In contrast, private equity deals remained steady, indicating consistent investor interest in that area.
Aurojyoti Bose
“The decline in global travel and tourism deal activity was mostly driven by a significant fall in deals volume in some regions and countries, while deal activity remained relatively better for some other regions and countries. In fact, some regions and countries even showcased double-digit growth in deal volume, which seems to be an indication of improving deal-making sentiments,” says Aurojyoti Bose, Lead Analyst, GlobalData.
“North America, Asia-Pacific, and South and Central American regions experienced decline in deal volume by 36 pc, 7.7 pc and 20 pc during Q1-Q3 2024 compared to Q1-Q3 2023. In contrast, Europe registered 10.3 pc YoY improvement in deal activity. Meanwhile, deal volume for the Middle East and African region mostly remained at the same level,” Bose says.
He highlights that the disparity in deal activity between regions and countries indicates a mixed sentiment across the global travel and tourism sector.
“Similarly, the trend across different countries also remained a mixed bag. The United States, China and France witnessed YoY decline in deal volume by 36.3 pc, 38.5 pc and 42.9 pc, respectively, during Q1-Q3 2024, whereas India and Japan experienced respective deal volume improve by 24.3 pc and 38.1 pc YoY. Meanwhile, deal volume for the UK, South Korea, and Australia mostly remained at the same level,” he says.
The report’s data is sourced from GlobalData’s proprietary Deals Database, which tracks financial transactions across industries. The data underscores the uneven recovery in global travel and tourism in 2024, driven by fluctuating market conditions across different regions and sectors.