Challenging global economic conditions and their implications reflected their impact on the travel and tourism sector’s deal activity in the first month of 2023. A total of 38 deals (comprising merger and acquisition, venture financing and private equity deals) were announced in the sector globally in January, which is a decline of 42.4% in terms of deals volume compared to the previous month, reveals GlobalData.
Aurojyoti Bose, lead analyst, GlobalData, said, “Deal-making sentiment in the global travel and tourism sector appears to have been heavily impacted by current geopolitical tensions and recession fears. Deal volume in several leading economies experienced considerable slowdown, which contributed to the overall decline.”
An analysis of GlobalData’s Financial Deals Database revealed that key markets such as the U.S., the U.K., China, Australia and Japan experienced a decline in deals volume in January 2023 compared to the previous month.
Bose added, “As deal-making sentiment took a hit in most of the key markets, all the deal types under coverage also experienced a decline.”
There was a decline of 36.8%, 50% and 50% in the number of merger and acquisition deals, venture financing deals and private equity deals announced during January 2023 compared to the previous month, respectively.