As with many industries, high interest rates, inflationary pressures and market volatility made for a turbulent year in hospitality, travel and tourism. According to the latest figures on mergers and acquisitions (M&A) from GlobalData, dealmakers responded with caution: in 2024, the global travel and tourism M&A market recorded a total deal value of $44 billion, reflecting a 10% decline compared to the previous year.
Yet large areas of M&A remained, if not buoyant, then certainly busy. The overall number of deals was virtually unchanged year-on-year at just under 560. This included 12 mega-deals (transactions valued at $1 billion or more) – again the same number as in 2023.
Beneath the headlines, many dealmakers see opportunity amid instability. Consolidation, strategic investments and a range of rising trends across the industry’s subsectors have continued to spur activity. This sanguine outlook will continue to assert itself over the course of 2025.
Travel and tourism M&A: the key trends driving growth
What fueled travel and tourism M&A in 2024? Drilling into the major news stories offers some insights. Standard General acquired Bally’s for $4.6 billion in the single largest move of the year. Bally’s is one of North America’s biggest casino and online gambling operators; it shows how leading firms are throwing their weight behind a fusion of entertainment and travel in the growing niche tourism segment. Stonepeak Partners’ acquisition of Air Transport Services Group for $3.1 billion highlighted ongoing industry consolidation, as firms sought to strengthen their foothold in key aviation markets. Right at the end of the year, Prosus’ $2 billion purchase of Despegar.com, a leading Latin American online travel agency, reflected the increasing importance of online travel and digital platforms. Meanwhile, KKR and Skip Essential Infrastructure Fund acquired a 74.3 per cent stake in Queensland Airports for $2.1 billion, another example of consolidation across infrastructure and transport.
2024’s other major deals augment this picture. In April, Vinci acquired a 50 percent stake in Edinburgh Airport for $1.58 billion, reinforcing the premium operators are placing on transport infrastructure in a recovering travel market. One month before, American Express Global Business Travel acquired CWT for $570 million – again signaling consolidation within the corporate travel segment. Meanwhile, in May, Ares Management and EQ Group acquired a hotel portfolio from Landsec for $501 million, and Henderson Park acquired the Arizona Biltmore in a massive $705 million purchase. These two huge deals underline that the Standard General-Bally megadeal was no one-off – operators are investing in the rise of luxury and experience-driven tourism across the board.
Taking a broader look at what this all means across travel & tourism and its subsectors, the lodging sector saw the highest level of M&A activity within the travel and tourism industry, recording 208 deals at a total value of $17 billion. The airline sector was the next most active, though to a lesser extent: the number of deals declined, although aggregate deal value remained steady, pointing to larger average deal sizes as consolidation strategies dominated. Intermediaries, including travel agencies and booking platforms, saw steady M&A activity, with online travel remaining a key theme influencing transactions. Car rental firms and online travel sales companies also experienced notable increases in deal activity, reflecting broader shifts in mobility trends and consumer preferences towards digital platforms.
The geographical distribution of deal activity in 2024 also presents a lively picture that points towards a changing center of gravity over the next 12 months. North America ended up leading the travel and tourism M&A market in terms of deal value, recording 128 transactions worth just over $20 billion – a 41% increase year on year. Europe followed with 236 deals worth $12.4 billion – a 33% increase in volume despite a 40% drop in total deal value. The Asia-Pacific region, excluding China, recorded 143 deals worth $11.5 billion, maintaining relatively stable levels of activity. A small number of high value deals in South America, meanwhile, drove a 667% increase in deal value to reach $2.4 billion across ten transactions. The Middle East & Africa region saw a 25% increase in deal value to $539 million on a 27% lower number of deals. Big-ticket M&A deals were a clear theme across the Americas in 2024; with the Prosus deal coming right at the end of December, it sets a cracking pace for the early months of 2025.
Looking ahead
The overall trajectory of travel and tourism M&A in 2024 suggests the sector remains resilient amid economic uncertainty. With a renewed emphasis on both luxury and affordability, corporate and commercial travel, alongside growing attention for sustainability and digital transformation, the sector’s M&A landscape continues to evolve.
Investment in digital travel services and platforms will remain a priority, particularly as artificial intelligence and personalization reshape consumer expectations. Geopolitical and economic headwinds show no signs of abating, but the appetite for strategic acquisitions, particularly in high-growth markets and evolving travel segments, looks set to remain strong.
Taken together, these deals point to several overarching trends in the wider hospitality and tourism sector. Focus on airport and travel infrastructure signals confidence in long-term passenger growth, despite economic uncertainty. Continued investment in high-end hotels and premium experiences suggests that demand for luxury travel remains resilient. The consolidation of corporate travel services reflects a shift towards more integrated offerings as business travel evolves post-pandemic. Meanwhile, niche tourism and specialized hospitality solutions look more vibrant than ever, indicating that travelers are increasingly seeking out tailored, unique experiences. These themes are likely to shape M&A activity in the sector over the course of 2025 and beyond.
Discover further insights
To learn more, download our new report, “Emerging Trends in North American Hospitality: 2025 and Beyond,” published in association with Sterling Technology – the provider of premium virtual data room solutions for secure sharing of content and collaboration for the M&A, corporate development, real estate, capital markets, private capital, banking and legal communities engaged in travel, tourism and hospitality dealmaking.
