The tourism and travel industry is showing signs of resilience in the field of investments, as according to GlobalData data, the first quarter of 2025 recorded a 5% decrease in the total number of deals on an annual basis, however, mergers and acquisitions (M&A) showed an increase of 9%.
This picture highlights the selective attitude of investors, with the emphasis shifting to mature and resilient markets amid changing economic conditions and readjustment of strategies at the international level.
“The overall decline reflects a more cautious investment planning, as investors reassess their moves in light of today’s challenges. However, several markets maintained their momentum, while some even recorded notable progress,” says Aurojyoti Bose, chief analyst at GlobalData.
Mixed picture by country
The US – traditionally the strongest market in terms of deal activity – saw a 25% drop in deal announcements in the first quarter. A mild decline was also observed in the UK. In contrast, Japan saw an increase in activity, while India and Australia remained stable.
Private equity and venture capital decline – M&A rise
Analyzing the deal mix, GlobalData sees a clear shift towards strategic acquisitions, as venture capital deals fell by 44% and private equity investments by 25%. At the same time, M&A deals increased by 9%, reflecting a more targeted investment approach.
Outlook: Targeted recovery with an emphasis on resilience
The stabilization of tourism demand and the integration of digital innovation appear to be catalysts for the recovery of investment in the sector, with investors turning to scalable opportunities and markets with stability.
“The immediate future is predicted to be selectively optimistic, with a gradual but steady restart of investment activity,” concludes Bose.
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