A total of 179 deals* were announced in the global Travel and Tourism sector during the first quarter (Q1) of 2023, which is a 40.7% decline compared to the announcement of 302 deals during the same period in 2022, according to GlobalData.
All the deal types under coverage witnessed a considerable year-on-year (YoY) decline in deal volume in Q1 2023. The numbers of merger & acquisitions (M&A), venture financing, and private equity deals fell by 42.9%, 29.4% and 50% during Q1 2023 compared to Q1 2022, respectively.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Deal activity in the travel and tourism sector witnessed a significant drop across all the regions in the first quarter of 2023 as economic uncertainties and geo-political tensions caused a rise in fuel costs and prices for several utilities.”
Deals volume fell sharply by 43.3% for the travel and tourism sector in the North America region, while Europe, Asia-Pacific, Middle East and Africa, and South and Central America experienced decline in deals volume by 45.6%, 34.7%, 10% and 60% in Q1 2023 compared to Q1 2022, respectively.
Bose adds: “The decline could be attributed to deal activity suffering setbacks in most of the key markets across all regions.”
Deal activity in major countries such as the US, the UK, Japan, India, Spain, and Australia decreased by 45%, 41.9%, 50%, 56.3%, 50%, and 66.7%, respectively during Q1 2023 compared to Q1 2022. Meanwhile, China and France managed to showcase some improvement, but it was not enough to offset the impact of the decline experienced in other countries.
*Comprising mergers & acquisitions, private equity, and venture financing deals