Merger and acquisition activity in the travel agency sector has been on the uptick in recent months. The motivation to buy or sell varies, but industry observers see a pattern: Most activity occurs among agencies with pre-pandemic annual sales below $20 million.
According to GlobalData, deal activity in the global travel and tourism sector increased 39.6% in June compared to the month prior, which lead analyst Aurojyoti Bose said “could be a positive sign for the upcoming months.”
In addition to M&A activity, there was an increase in the number of private equity and venture financing deals, GlobalData said.
While GlobalData’s analysis includes not only travel agencies and travel management companies — it extends to travel technology startups, service providers and hotels and casinos — all indications point to a busy market for travel agencies on both the buy and sell sides.
Industry lawyer Mark Pestronk, also Travel Weekly’s Legal Briefs columnist, said the market started to heat…