Deal-making activity in the global travel and tourism sector dipped in 2022, with a total of 1,006 deals being announced, according to data from analytics consultancy GlobalData.
Overall, deal-making activity fell 3.4% compared to the more than 1,040 deals announced in 2021.
Deal activity in the U.S., which is the leading market in terms of deals volume, fell 2.8% in 2022 compared to 2021. Several other key global markets also witnessed a negative shift in deals volume, contributing to the overall decline.
Deal volume in China, India, Australia and Spain declined by 5.7%, 25%, 17.9% and 2.9% in 2022, respectively, compared to the previous year. Meanwhile, the UK, Germany, France, and Japan saw growth in deals volume by 15.8%, 33.3%, 3.7% and 10.9% during 2022 compared to 2021, respectively.
“Geopolitical tensions and economic challenges seem to have impacted deal-making sentiments for the sector. Resultantly, deal activity slowed down in several key markets,” said Aurojyoti Bose, lead analyst at GlobalData.
Deals under coverage, including venture financing and private-equity deals, declined by 23.7% and 21.8% during 2022 compared to 2021, respectively, while merger and acquisition deals volume surged 10.7%.