The global travel and tourism sector saw the announcement of 793 deals (comprising mergers & acquisitions [M&A], private equity, and venture financing deals) in Q1-Q3 2022, recording a 4.6% growth compared to 758 deals in Q1-Q3 2021. However, when considering the month-on-month trend, the sector witnessed a consistent decline in deal activity in recent months, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database revealed that September 2022 marks the third consecutive month of decline in deals activity for the travel and tourism sector globally. A total of 56 deals were announced in the sector in September 2022, down 21.1% compared to the previous month.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The decline could be attributed to the ongoing Russia-Ukraine conflict, oil price fluctuations and rising inflation, which have weighed heavily on deal-making sentiments. In fact, most of the deal types under coverage and several key markets witnessed a decline deal activity in September.”

The announcement of M&A and private equity deals declined by 29.2% and 25% in September 2022 compared to the previous month, respectively, while the number of venture financing deals increased by 6.7%.

Key global markets such as the US and China witnessed a decline in deal activity in September 2022 compared to the previous month, while the UK and India registered improvement.