Global Travel and Tourism Sector Deal Activity Down 5% in 2025

The travel and tourism sector experienced subdued deal activity in 2025, with the total number of deals (comprising mergers & acquisitions (M&A), private equity, and venture financing) announced globally in the sector decreasing by 5% year-on-year in 2025, according to GlobalData.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The downturn is indicative of broader economic uncertainties weighing on deal-making sentiments. While the overall deal volume in the travel and tourism sector faced headwinds, certain regions and markets showcased resilience.”

An analysis of GlobalData’s Deals Database revealed that the travel and tourism sector witnessed varied regional trends. The Asia-Pacific region saw a 4% decline in deal volume in 2025 compared to 2024. Europe experienced a more pronounced downturn, with a 17% decrease, reflecting ongoing economic pressures and geopolitical uncertainties.

North America bucked the trend with an 8% increase, driven by improvement in deal activity in the key markets. Meanwhile, deal volume for the Middle East and Africa, and South and Central America mostly remained unchanged in 2025 compared to the previous year.

A closer examination of select key markets reveals that the US and Canada registered growth in deal volume during 2025 compared to the previous year while India, China, Spain and Germany experienced decline, and deal volume for some markets such as the UK, Japan and Australia mostly remained at the same level as in 2024.

Bose adds: “The wide disparity across different regions and markets suggest that localized opportunities still continue to exist despite broader market challenges.”

The trend across deal types in the travel and tourism sector also remained a mixed bag. M&A activity was stable, with deal volume mostly remaining at the same level in 2025 as in the previous year. This suggests that while the appetite for inorganic growth persists, companies are exercising caution in their strategic pursuits.

In contrast, venture financing and private equity experienced declines of 21% and 28% in deal volume, respectively, reflecting tighter capital availability and a more risk-averse investment climate.