The global travel and tourism industry experienced a slowdown in deal activity during the first half of 2024, marking a departure from the robust activity observed in the previous year. Data reveals a 10.4% year-on-year decrease in deals, encompassing mergers and acquisitions (M&A), private equity, and venture financing transactions, totaling 415 deals announced from January to July 2024.
The decline in deal activity wasn’t uniform across all regions. North America experienced the most substantial decrease, with a 30.9% drop in deal volume compared to the same period in 2023. The Asia-Pacific region and South and Central America also saw significant declines, registering year-on-year reductions of 16.3% and 42.9%, respectively.
Europe bucked the trend, witnessing a 16.8% increase in deal volume, driven by a rise in transactions across several key markets within the region. Meanwhile, the Middle East and Africa regions maintained a steady level of deal activity.
Looking at individual markets, the United States saw a notable 30.4% decline in deal volume. South Korea, China, Australia, and France also experienced significant drops, with reductions of 5.6%, 50%, 27.8%, and 45%, respectively. However, countries like the United Kingdom, India, Japan, Spain, and Germany recorded increases in deal activity during the same period.
A closer examination of the deal types reveals a 6.6% decrease in M&A transactions from January to July 2024 compared to the same period in 2023. Venture financing deals saw a more pronounced decline of 25.4% year-on-year. In contrast, private equity transactions experienced a 21.4% increase in volume.
This dynamic landscape of deal activity reflects the complex and evolving nature of the global travel and tourism sector in 2024. While some regions and segments demonstrate resilience, others face challenges, highlighting the sector’s need to adapt and navigate the changing economic and geopolitical landscape.
