Figures published by data and analytics firm GlobalData show that 482 deals were announced worldwide between January and August, 36.2% down compared to the 756 announced during the same period last year.
The volume of mergers and acquisitions (M&A) went down by 37.8% while private equity and venture financing deals were down by 38.1% and 30.8% respectively.
“Economic uncertainties including interest rate hikes, rising inflation, looming recession fears coupled with geopolitical tensions seem to have made investors cautious, which led to the significant decline in travel and tourism deal activity across many countries,” said GlobalData lead analyst Aurojyoti Bose.
The data showed that Japan, the US and the UK were the hardest hit, as deal volumes went down by 62.5%, 47.2% and 45.3% respectively. They were followed by the likes of Australia and France, which both saw a double-digit slip.
“Despite the challenges, its ability to adapt and recover has been a hallmark of the travel and tourism industry, and this resilience is likely to drive a resurgence in deal activity when the global landscape stabilises,” Bose added.
The data seems to contradict previous reports, which showed that the sector’s rebound post-pandemic was driving a surge in both private equity and M&A deals in the UK market.
According to Debbie Potts, founding director of travel M&A specialist Summit Advisory, the mergers and acquisitions landscape was “defrosting” post-Omicron, with buyers sharpening their focus on the industry.
Whereas, Kelly Cookes, chief commercial officer at the Advantage Travel Partnership, told TTG in May private equity investment was coming back in a variety of ways, including direct and indirect backing.
