A total of 1,006 deals* were announced in the global travel and tourism sector during the 2022, which is a decline of 3.4% over the 1,041 deals announced during the previous year, according to GlobalData, a data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Geopolitical tensions and economic challenges seem to have impacted deal-making sentiments for the sector. Resultantly, deal activity slowed down in several key markets.”
For instance, the US, which also happens to be the top market by deals volume, experienced a 2.8% decline in deal activity in 2022 compared to 2021. Several other key global markets also experienced a negative shift in deals volume, which contributed to the overall decline.
China, India, Australia and Spain witnessed a decline in deals volume by 5.7%, 25%, 17.9% and 2.9% in 2022, respectively, compared to the previous year. Meanwhile, the UK, Germany, France, and Japan managed to register growth in deals volume by 15.8%, 33.3%, 3.7% and 10.9% during 2022 compared to 2021, respectively.
Deals under coverage including venture financing and private equity deals witnessed declines of 23.7% and 21.8% during 2022 compared to 2021, respectively, while merger and acquisition deals volume increased by 10.7%.
*Comprising mergers & acquisitions, private equity and venture financing deals.