Deal-making in the travel and tourism sector showed signs of cautious optimism in the first quarter (Q1) of 2025, with overall activity experiencing only around 5% year-on-year (YoY) dip. While venture financing and private equity deals declined, mergers and acquisitions saw modest growth, highlighting investor selectivity and regional resilience as key themes amid the evolving macroeconomic conditions and shifting strategies across global markets, reveals GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “While the overall decline may reflect a more cautious investment climate as dealmakers reassess their strategies in light of prevailing market conditions, several countries maintained steady deal volumes and some also managed to register notable improvement, indicating resilience in these markets.”
The US, which is the top market globally in terms of deal activity, experienced approximately 25% YoY drop in the number of deals announced during Q1 2025. The UK also witnessed slight decline in deal volume. Meanwhile, Japan showcased notable improvement and the deal volume for India and Australia remained mostly at the same level.
An analysis of GlobalData’s Deals Database revealed that the composition of deals showcased a mixed picture with M&A deal volume registering growth while the number of private equity deals and venture financing deals decreased.
Venture financing deals volume fell by around 44% during Q1 2025 compared to Q1 2024 and private equity deal volume was down by around 25%. Meanwhile, the number of M&A deals announced in the sector globally were up by around 9%.
Bose concludes: “As travel demand stabilizes and digital innovation reshapes the sector, investors are likely to focus on scalable opportunities and resilient markets. The near-term outlook points to a selective but steady recovery in deal-making momentum.”
