GlobalData, a leading data and analytics company, has revealed a decline in mergers and acquisitions (M&A) in the travel and tourism space.
According to its Financial Deals Database, 365 deals (which include M&A, private equity, and venture financing deals) were announced in the global travel and tourism sector during the first half of 2023.
This is a decline of 38.8 per cent compared to the 596 deals announced during the same period last year and has been attributed to rising interest rates, global downturn and geopolitical uncertainty.
According to GlobalData all deal types witnessed decline in deal activity. The numbers of M&As, private equity and venture financing deals declined by 41.6 per cent, 33.3 per cent and 30.4 per cent, respectively, year-on-year during H1 2023 compared to H1 2022.
Aurojyoti Bose, lead analyst at GlobalData, said: “Several global economies are experiencing distressed deal activity in the travel and tourism sector. There are several factors affecting the deal activity and notable among them include rising interest rates, looming fear of recession and the ongoing geopolitical tensions.”
Europe accounted for the highest share of the number of deals announced in the travel and tourism sector globally followed by Asia-Pacific, North America, Middle East and Africa, and South and Central America.
However, despite having the highest share of deals, Europe witnessed a 46 per cent decline in deal volume. European countries which saw a year-on-year decline in volume of deals
in the sector included the UK (44.8 per cent), France (33.3 per cent),
and Spain (69.2 per cent).
Business travel M&As in the UK this year include Wayte Travel Management acquiring Quintessentially Corporate Travel Management in June, and in April Gray Dawes Group cemented its reach across the US with its 13th acquisition when it took on the Florida travel management business Express Travel.