Deal activity declined due to rising oil prices, inflation, geopolitical tensions and an uncertain business environment.
A total of 912 deals were announced in the global travel and tourism sector from January to November 2022.
This is a 3% decline compared to the 940 deals announced during the same period last year, according to the latest data from industry analysts.
Decline in deal activity for the travel and tourism sector indicates the impact of rising oil prices, inflation, geopolitical tensions and an uncertain business environment on deal-making sentiments.
A decline in the volume of deals for the sector in markets such as China, India and Australia led to an overall decline in global deal activity for the sector.
China, India and Australia decreased by 20.8%, 23.5% and 31.6% respectively from January to November 2022 compared to the same period in 2021.
At the same time, the USA, UK and Japan saw increases in deal activity of 2.5%, 10.8% and 9.8% respectively.
However, this improvement was not enough to negate the impact of the decline experienced in other markets.
Deals in coverage, including venture financing deals and private equity deals, recorded a 26% and 17.8% decline from January to November 2021, respectively, while the number of mergers and acquisitions deals increased by 12.9%. .
*Includes mergers & acquisitions, private equity and venture financing deals