Travel Industry Sees 40 Percent YoY Decline in Deal Activity
Skift Take
- Stock market: DJIA down 245 points, Nasdaq down 22, S&P 500 down 21 points
- Decline in travel and tourism deal activity: 41% YoY decline, all deal types registered a decline in volume
- Hotel transactions: Several hotels sold, renovated, or under development in different locations
The DJIA ended the day down 245 points while Nasdaq was down 22, the S&P 500 fell 21 points and the 10-year treasury yield was down .04 to 3.73%. Lodging stocks were lower. SOND was down -10%, AHT was down -8% but SLNA rose 7% on the day.
The travel and tourism industry witnessed a massive 41% YoY decline in deal activity from 475 deals during January-May 2022 to 282 during the same time 2023, according to GlobalData. All deal types registered decline in volume. For instance, merger and acquisitions deals volume decreased by 43% while the number of venture financing deals and private equity deals YoY declined by 34% and 44% respectively, during January to May 2023. North America experienced a decline of 48% in deals volume during January to May 2023 compared to the same period during the previous year while Europe, Asia Pacific, and South and Central America regions registered decline of 49%, 27% and 36%, respectively. Deals volume for the middle East
