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In the first half of 2023 (H1 2023), the global travel and tourism industry observed a significant 38.8% drop in deal activity compared to the same period in 2022, according to a recent study by GlobalData, an industry-leading data and analytics firm. The analysis involved 365 deals across mergers & acquisitions (M&A), private equity, and venture financing in travel and tourism.

Based on an in-depth examination of GlobalData’s comprehensive Financial Deals Database, every deal category recorded a year-on-year (YoY) slump in the first half of 2023. More specifically, M&A, private equity, and venture financing deals decreased by 41.6%, 33.3%, and 30.4%, respectively.

Aurojyoti Bose, Lead Analyst at GlobalData, sheds light on this decline stating, “Many international economies are grappling with distressed deal activity within the travel and tourism industry. Notable factors contributing to this decline encompass rising interest rates, the impending fear of recession, and persisting geopolitical tensions.”

Regionally, Europe led the pack, accounting for the most deals announced in the global travel and tourism sector, followed by Asia-Pacific, North America, the Middle East and Africa, and South and Central America. Yet, all these regions recorded a considerable drop in deal volume. Europe experienced a 46% YoY decline, while Asia-Pacific, North America, Middle East and Africa, and South and Central America observed a fall of 19%, 47.6%, 20%, and 23.1%, respectively.

Regarding key markets, the US, the UK, India, Australia, France, South Korea, Japan, and Spain all observed a drop in deal volumes for H1 2023 compared to H1 2022. The drop was as high as 69.2% for Spain and 47.7% for the US.

However, China presented a refreshing change to this downward trend, with an 18.2% growth in the announcement of deals in the travel and tourism sector during H1 2023 compared to H1 2022.

It’s essential to note that the historical data is subject to change if any deals are added retrospectively due to delayed public information disclosure.

With the downturn in the global travel and tourism deal activity, this research underscores the sector’s prevailing instability amid rising economic uncertainties. As industry stakeholders brace for further turbulence, there remains a hope that recovery and resilience might ultimately prevail.