A report by GlobalData says that mergers and acquisitions in travel and tourism industry worldwide has collapsed by over 60 pc in February, continuing trend from last year. Key markets like the United States and United Kingdom report big declines.

GlobalData, a leading data and analytics company says that deal volume of mergers and acquisitions deal in the travel and tourism industry fell by 60.4 pc year-on-year in February. 

A report by GlobalData says transaction volume in the industry has more than halved, from 111 agreements disclosed in February 2022 to merely 44 deals announced in February 2023, according to an analysis of GlobalData’s Financial Deals Database. The report warns that the industry faces another setback with a significant fall in deal activity, in addition to already grappling to recover from the pandemic-induced slowdown.

In February, deal activity decreased dramatically across the majority of the nations, with some of them reporting double-digit decreases. Some of the important markets saw no announcements of any deals all throughout the month.

GlobalData says that in February 2023, the United States which is one of the markets with the highest transaction volume, saw a fall in deal volume of 71.9 pc. Similarly, the UK saw a 46.2 pc decrease in deal volume from year to year. Meanwhile, not a single agreement was announced in Spain, Germany, or Japan during the month, adds the report.

“The decline underscores the ongoing uncertainty and challenges, including changing consumer behavior, and economic volatility, faced by the travel and tourism industry. As the market scenario is rapidly changing, with fears of recession investors seem to have become cautious,” says Aurojyoti Bose, Lead Analyst at GlobalData.

The survey also reported that all deal types under the coverage, merger and acquisition, venture financing and private equity deals, witnessed decline too. The number of venture financing and private equity deals declined by 59.4 pc and 60 pc, respectively, while merger and acquisition deal volume declined by 60.9 pc in February 2023, added the statement.

“The decline in deal activity in the travel and tourism industry is a stark reminder of the ongoing challenges and uncertainties as it seeks to recover from the pandemic. However, it also presents an opportunity to explore new models and partnerships that can drive innovation and growth in the post-pandemic era. As the industry continues to navigate these obstacles, investors should remain vigilant and adaptive to the emerging trends and opportunities,” Bose adds.