Travel & tourism deal activity drops by more than 8% in a single week
Mergers & acquisition deals saw a marginal increase, according to GlobalData
The number of deals announced in the global travel and tourism sector decreased by 8.3% during the week ended May 3 compared to the previous week.
Data collected by GlobalData shows the knock-on effects of COVID-19 on the industry, with fewer hoteliers willing to hash out deals with other struggling hoteliers.
GlobalData analyst Aurojyoti Bose explained that deal activity has remained inconsistent since the World Health Organisation declared a pandemic. “The decline this week was mainly due to lower volume of debt offering deals, which declined by 61.5%. The number of private equity deals also declined.”
Deals across key markets such as the US, Japan and South Korea all dropped, though India and China witnessed growth.
During the week ended May 3, merger and acquisition deals (M&A) and venture financing deals grew – this figure reinforces predictions from GlobalData that M&A activity will soar post-COVID.
According to its analysts, as smaller hoteliers are backed into a corner, they will have no choice but to be engulfed by larger figures in hospitality.