The level of deal activity in the global travel and tourism sector slumped by almost half in January compared to the previous month.
The drop-off came in the face of challenging global economic conditions.
A total of 38 deals – comprising merger and acquisition, venture financing and private equity deals – were announced in the sector globally in the month, down 42.4% on December.
Analysis by analytics firm GlobalData of its financial deals database revealed that key markets such as the US, UK, China, Australia and Japan all saw a decline in deals volume in January 2023 compared to the previous month.
There was a fall of 36.8%, 50% and 50% respectively in the number of merger and acquisition, venture financing and private equity deals announced during January compared to the previous month,.
Lead analyst Aurojyoti Bose said: “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.
“As deal-making sentiment took a hit in most of the key markets, all the deal types under coverage also experienced a decline.”