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 2023, which is a decline of 42.4% in terms of deals volume compared to the previous month, reveals GlobalData, a leading data and analytics company.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “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 US, the UK, China, Australia, and Japan experienced a decline in deals volume in January 2023 compared to the previous month.

Bose adds: “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.

(Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain)