Faced with difficult market conditions, many global industries have grappled with subdued deal activity during January-July
2023.
The travel and tourism industry is no different and saw deal activity decline by a massive year-on-year (YoY) 35.7%.
The latest industry analysis reveals that 438 deals were announced in the travel and tourism sector globally during January-July 2023 compared to 681 during January-July 2022.
Volatile economic conditions continued to impact the deal-making sentiments in the travel and tourism industry in 2023 with most of the top markets experiencing a double-digit decline in deal volume.
In fact, the top two markets by deals volume, the US and the UK, saw respective deal volumes reduced to almost half.
The number of deals announced in the USA fell by 45% from 218 to 120. Meanwhile, the deal volume for the UK declined by 43.8% from 80 to 45.
India, Australia, France, South Korea, Japan, The Netherlands, and Italy witnessed a YoY decline in deal volume by 16.7%, 21.7%, 19%, 5.9%, 60%, 31.3%, and 10%, respectively.
However, China emerged as a notable exception and registered 12% YoY growth in deal volume.
In terms of regions, Europe, Asia-Pacific, North America, Middle East and Africa, and South and Central America witnessed YoY decline in deal volume by 44.8%, 14.4%, 44.6%, 13%, and 20%, respectively, during January-July 2023.
All the deal types under coverage witnessed a YoY decline in deal activity. The number of mergers and acquisitions (M&A), private equity, and venture financing deals declined by 37.5%, 36.8%, and 29.7%, respectively, during January-July 2023.
While markets grappled with volatility, the contrasting trajectory of China’s deal volume demonstrates the industry’s inherent resilience. As the industry charts its course through uncertainty, it continues to unveil pockets of potential and prospects for revival.
