Data aggregator and analyst firm GlobalData says that the total deal activity in the travel and tourism sector across the world declined by 38.8 pc in first half of the current year.

A total of 365 deals of all kinds, including mergers and acquisitions, private equity and venture financing deals, were announced in the travel and tourism sector globally during the first half (H1) of 2023. This number represented a hefty decline of 38.8 pc compared to 596 deals announced during the same period in the previous year, says a report by global business data aggregator and analyst firm, GlobalData.

According to a press statement, an analysis of GlobalData’s financial deals database shows that all the deal types under coverage witnessed decline in deal activity. The numbers of mergers and acquisitions (M&A), private equity and venture financing deals declined by 41.6 pc, 33.3 pc and 30.4 pc, respectively, year-on-year (YoY) during H1 2023 compared to H1 2022.

“Several global economies are experiencing distressed deal activity in the travel and tourism sector. There are several factors affecting the deal activity and notable among them include rising interest rates, looming fear of recession and the ongoing geopolitical tensions,” says Aurojyoti Bose, Lead Analyst at GlobalData.

As a region, Europe accounted for the highest share of the number of deals announced in the travel and tourism sector globally followed by Asia-Pacific, North America, Middle East and Africa, and South and Central America.

While Europe witnessed 46 pc YoY decline in deal volume, Asia-Pacific, North America, Middle East and Africa and South and Central America regions witnessed decline in deals volume by 19 pc, 47.6 pc, 20 pc and 23.1 pc, respectively, during H1 2023 compared to H1 2022.

Several key markets recorded slowdown in travel and tourism sector related deal activity during H1 2023 compared to H1 2022. For instance, the US, the UK, India, Australia, France, South Korea, Japan, and Spain witnessed decline in deals volume by 47.7 pc, 44.8 pc, 21.4 pc, 21.1 pc, 33.3 pc, 20 pc, 62.1 pc and 69.2 pc, respectively, during H1 2023 compared to H1 2022.

Meanwhile, China emerged as a notable exception to the declining trend and saw 18.2 pc growth in the announcement of deals for the travel and tourism sector during H1 2023 compared to H1 2022, says GlobalData.