Deal-making activity in the global travel and tourism sector saw a slight decline between January to November, found data and analytics company GlobalData. A total of 912 deals were announced in this period, a 3% dip over the 940 deals announced in the same period last year, according to GlobalData.
A decrease in deal volume in markets including China, India and Australia fueled the overall decline in global deal activity for the sector. China, India and Australia saw deal volumes declining by 20.8%, 23.5% and 31.6% from January to November, compared to the same period in 2021, respectively.
Although deal activity in the U.S., the U.K. and Japan surged by 2.5%, 10.8% and 9.8%, respectively; the improvement wasn’t enough to negate the impact of the decline in the other markets.
Deals under coverage including venture financing deals and private equity deals also declined in volume by 26% and 17.8% from January to November, compared to the same period last year, respectively, while the number of mergers and acquisitions deals increased by 12.9%.
“A decline in deal activity for the travel and tourism sector indicates the impact rising oil prices, inflation, geopolitical tensions and an uncertain business environment are having on deal-making sentiments,” said Aurojyoti Bose, lead analyst at GlobalData.