Travel and Tourism Sector Sees 12.6% Drop in Deal Activity in H1 2024

In the first half (H1) of 2024, the global travel and tourism sector experienced a 12.6% year-on-year (YoY) decline in deal activity, with a total of 347 deals announced.

This is a significant drop from the 397 deals recorded during the same period in 2023, according to data and analytics company GlobalData.

Despite the overall decline in deal-making sentiment globally, the trend varied across different markets and regions. "While some countries contributed to the decline, others experienced improved activity," noted Aurojyoti Bose, lead analyst at GlobalData.

The analysis of GlobalData’s Deals Database revealed that mergers and acquisitions (M&A) deals decreased by 7.4% YoY, and venture financing deals saw a sharper fall of 29.6%. In contrast, private equity deal volume remained stable compared to the previous year.

Regionally, North America, Asia-Pacific, the Middle East and Africa, and South and Central America witnessed YoY declines in deal volumes by 31.7%, 14.5%, 11.1%, and 41.7%, respectively. Conversely, Europe showed positive growth with an 11.7% increase in deal volume.

Specific countries also showed varying trends. The U.S., China, Australia, and France experienced notable declines in deal volume, with drops of 31.5%, 46.4%, 18.8%, and 40%, respectively. On the other hand, the U.K., India, and Japan reported YoY growth in deal volumes by 7.9%, 12%, and 18.2%, respectively.

These figures highlight a mixed landscape for the travel and tourism sector, with some regions and countries showing resilience and growth, while others face significant declines.