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The global travel and tourism sector has experienced a significant downturn in deal activity during the first half (H1) of 2024, with a year-on-year (YoY) decline of 12.6%, according to the latest data from GlobalData, a leading provider of data and analytics. This period saw the announcement of 347 deals, comprising mergers and acquisitions (M&A), private equity, and venture financing, compared to 397 deals in the same period last year.

Aurojyoti Bose, Lead Analyst at GlobalData, provided insights into this trend: “Even though there was a decline globally due to a dent in deal-making sentiments, the trend was a mixed bag across different markets and regions, with some countries contributing to the decline while some experienced improved activity. And the same was the case for the deal types under coverage.”

A detailed analysis of GlobalData’s Deals Database revealed a varied landscape. The volume of M&A deals fell 7.4% YoY during H1 2024, while venture financing deals saw a sharp decline of 29.6%. In contrast, private equity deal volumes remained steady compared to the previous year.

Geographically, North America, Asia-Pacific, the Middle East and Africa, and South and Central America all reported substantial declines in deal volumes, with figures dropping by 31.7%, 14.5%, 11.1%, and 41.7%, respectively. Europe, however, bucked the trend with an 11.7% increase in deal volume YoY.

Country-specific data mirrored these regional trends. The United States saw a 31.5% drop in deal volume, while China, Australia, and France experienced declines of 46.4%, 18.8%, and 40%, respectively. On the other hand, the UK, India, and Japan reported positive growth in deal volumes, with increases of 7.9%, 12%, and 18.2% respectively.

Bose elaborated on the mixed trends: “The travel and tourism sector is facing a complex scenario. While traditional markets like the US and China are seeing a downturn, emerging markets such as India and Japan show resilience and growth. This divergence highlights the need for a nuanced approach to investment and strategy in the sector.”

It is important to note that historical data might be subject to changes as new deals get disclosed and added to previous months due to delays in public information release.

This decline in deal activity raises critical questions about the future trajectory of the travel and tourism sector. To navigate this challenging landscape effectively, stakeholders and investors will need to analyze these trends carefully and adapt their strategies.