The travel and tourism industry in US, the UK, India, France, Australia and Japan witnessed significant YoY decline
As per analysis by GlobalData, a leading data and analytics firm, the travel and tourism industry has seen a dramatic 41 pc year-over-year (YoY) decline in deal activity, from 475 deals announced during January-May 2022 to 282 during the first five months of 2023.
GlobalData says that there was a decline in volume across the board for all deal types covered. For instance, from January to May 2023, the volume of M&A transactions fell by 43 pc, while the number of venture finance and private equity operations dropped by 34 pc and 44 pc, respectively.
“The decline in deal activity in the industry indicates dampened sentiments and cautious approach of investors. The ongoing uncertainties and impact of the geopolitical tensions, inflation and recession fears have forced deal makers to adopt a more conservative approach,” says Aurojyoti Bose, Lead Analyst at GlobalData.
“The industry also witnessed a substantial YoY decline in deal activity across most of the regions worldwide during the period,” adds Bose.
When compared to the same period in the previous year, North America saw a 48 pc decline in the volume of agreements, while Europe, Asia-Pacific, and South and Central America saw declines of 49 pc, 27 pc, and 36 pc, respectively. For the Middle East and Africa region, deal volume remained constant, adds GlobalData.
The US, the UK, India, France, Australia and Japan witnessed significant YoY decline of 48 pc, 48 pc, 33 pc, 7 pc, 29 pc and 54pc, respectively, in deals volume during January to May.
“On the other hand, easing of travel restrictions seems to be encouraging Chinese travelers. As a result, China stood out as a notable exception and registered a 19 pc YoY growth in the number of deals announced during the period,” Bose adds.
