GlobalData's analysis attributes the trends to investor selectivity and varying regional resilience in response to ongoing economic shifts and evolving business strategies
The travel and tourism sector saw steady Mergers and Acquisitions (M&A) activity in the first quarter of 2025, despite a 5 pc year-on-year drop in overall deal volume, reveals a recent report by GlobalData, a data analytics and consulting firm. The report highlights growing investor selectivity and regional resilience amid shifting global economic and market conditions.
In a press, a statement GlobalData says that while overall investment activity declined slightly, M&A deals in the sector rose by 9 pc globally.
Also Read: Global travel & tourism deals decline 10.4 pc in 2024 amid economic uncertainty: GlobalData
It adds that in contrast, venture financing dropped by approximately 44 pc and private equity deals fell by about 25 pc compared to Q1 2024, indicating a cautious approach among investors.
Aurojyoti Bose
The statement adds that the United States, the largest market for deal-making, saw a 25 pc drop in deal announcements. The UK recorded a minor decline, while Japan posted a notable rise. Deal volumes in India and Australia remained stable.
GlobalData’s analysis attributes the trends to investor selectivity and varying regional resilience in response to ongoing economic shifts and evolving business strategies.
“While the overall decline may reflect a more cautious investment climate as dealmakers reassess their strategies in light of prevailing market conditions, several countries maintained steady deal volumes and some also managed to register notable improvement, indicating resilience in these markets,” says Aurojyoti Bose, Lead Analyst, GlobalData.
Also Read: Global travel M&A deals fall by 12.6 pc in January to August 2024: GlobalData
“As travel demand stabilises and digital innovation reshapes the sector, investors are likely to focus on scalable opportunities and resilient markets. The near-term outlook points to a selective but steady recovery in deal-making momentum,” Bose adds.
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