Deal-making in the travel and tourism sector exhibited cautious optimism in the first quarter (Q1) of 2025, with overall M&A activity showing only a 5% year-on-year (YoY) decrease. Although there was a decline in venture financing and private equity deals, mergers and acquisitions demonstrated modest growth, pointing to selectivity among investors and resilience in various regions amidst changing macroeconomic conditions.

Aurojyoti Bose, Lead Analyst at GlobalData, noted:

“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 managed to show improvement, indicating resilience in these markets.”

The United States, as the leading market globally, experienced approximately a 25% YoY decline in announced deals during Q1 2025, while the UK also saw a slight drop. In contrast, Japan showed notable growth, and the deal volumes for India and Australia largely remained unchanged.

An analysis of GlobalData’s Deals Database revealed that the mix of deals presented a varied picture with M&A deal volume growing while the numbers of private equity and venture financing deals fell. Specifically, venture financing dipped by about 44% compared to Q1 2024, and private equity deals were down by roughly 25%. Nevertheless, the overall M&A deals in the sector rose by around 9%.

Bose concluded:

“As travel demand stabilizes and digital innovation continues to reshape the sector, investors are likely to focus on scalable opportunities and resilient markets. The near-term outlook suggests a selective yet steady recovery in the deal-making momentum.”