International data and analytics firm GlobalData reports that the travel and tourism sector experienced a notable decline in deal activity in the first half of 2025, reflecting a shift in market dynamics and investor sentiment.
The total number of deals ranging from mergers and acquisitions to private equity and venture financing dropped by around eight percent within the first six months of this year.
An analysis of GlobalData’s Deals Database revealed that all the deal types under coverage registered decline.
The number of venture financing and private equity deals registered YoY decline of around 25 percent and 20 percent, respectively, during H1-2025 while M&A activity exhibited relative resilience with a slight contraction of 3.5 percent in deal volume.
GlobalData lead analyst Aurojyoti Bose opined: “The overall decline underscores a broader trend where macroeconomic factors and investor sentiments are reshaping deal-making strategies within the industry. The subdued activity suggests that dealmakers are becoming increasingly cautious likely due to the macroeconomic challenges and volatile market conditions. The decline in venture financing and private equity deals, suggests a dent in investor sentiment, emphasizing a trend of reduced risk appetite.”
Performance per region
The Asia-Pacific market emerged as a bright spot, witnessing an increase of around 11 percent in deal volume in H1-2025.
This growth can be attributed to countries like Japan and India showing improvement in deal activity.
Conversely, other regions witnessed significant decline in deal activity.
Europe, North America, the Middle East and Africa, as well as South and Central America registered a decline of around 19 percent, 10 percent, 39 percent, and 12 percent in their respective deal volumes during H1-2025 compared to H1-2024.
The US, China, and Germany saw YoY decline in the number of deal announcements in H1-2025 while the UK managed to maintain the deal volume mostly at the same level.
