Mergers and Acquisitions in Travel and Tourism Industry, Top Themes in H1 2021 – Thematic Research
All the vital news, analysis, and commentary curated by our industry experts.
In the first six months of 2021, M&A deal value in the T&T sector totaled $84bn, up 82.6% from the same period of the previous year. Q1 2021 saw 189 deals with $26bn total deal value, which is a 16.1% drop when compared to Q1 2020. However, global M&A deal value recorded a 123% increase in Q2 2021, which was the highest quarter-on-quarter growth percentage over the last five years.
The key themes of premiumization and indulgence, the sharing economy and low-cost evolution have driven M&A activity in H1 2021 due to the pandemic impacting travelers’ financial positions. According to GlobalData’s Q2 2021 Consumer Survey, when global respondents were asked if they were concerned about their personal financial situation, 15% stated that they were ‘not concerned’. Although this is still significantly less than the 31% that stated they are ‘extremely concerned’, it means that potentially three in twenty of the global travel market could be financially unaffected by the pandemic and may have even become wealthier during this period. This has driven high value deals such as the Star Entertainment Group merger with Crown Resorts. As already stated, 31% of global consumers said that they are still ‘extremely concerned’ about their personal financial situation, this has driven deals that involve the themes of the sharing economy and low-cost evolution. The Blackstone and Starwood Capital Group acquisition of Extended Stay America (ESA) is an example of this.
The first section of this report provides a specific deep dive into M&A activity in H1 2021. Deal frequency, value, location, and individual tourism sub-sectors will be assessed, also factoring in how the pandemic has impacted activity in this period. In the second section, the key themes behind recent T&T M&A activity market are displayed. In this section, we highlight the most interesting T&T M&A announcements across the first two quarters of 2021. For each announcement we provide the key themes – or theme – that is driving the deal to provide an overview of companies’ differing strategic directions.
“With the impact of the pandemic now seeming to substantially subside in particular destinations in Q2 2021 due to successful vaccine rollouts, acquiring companies now feel that investing in countries that are emerging from the pandemic at a swift rate is a safer bet than before.” – Ralph Hollister – Travel & Tourism Analyst, GlobalData
This report provides a comprehensive overview of the T&T M&A market.
This report assesses the impact of COVID-19 on M&A activity.
This report identifies the main themes contributing to M&A activity in H1 2021.
We highlight companies involved in recent M&A activity in T&T, such as HomeToGo, The Star Entertainment Group, Sonder, Marriott, Canadian National Railway.
According to GlobalData’s Q2 2021 Consumer Survey, when global respondents were asked if they were concerned about their personal financial situation, 15% stated that they were ‘not concerned’. Although this is still significantly less than the 31% that stated they are ‘extremely concerned’, it means that potentially three in twenty of the global travel market could be financially unaffected by the pandemic and may have even become wealthier during this period.
A key deal in Q2 2021 that was driven by this trend was the Star Entertainment Group merger with Crown Resorts, worth $7bn. The Star Entertainment Group is a gambling and entertainment company, which means it very much focuses on the indulgence aspect of this theme. The Star’s Chairman, Mr John O’Neill, said that bringing together The Star and Crown would create an estimated AUD12bn ($8.9bn) ASX-listed national tourism and entertainment leader. In the letter detailing the merger proposal, Star stated that it estimates that a merger with Crown would result in indicative cost synergies of between AUD150m ($111m) and AUD200m ($148m) per annum.
Several T&T transactions in Q2 2021 involved special purpose acquisition companies (SPACs). Two notable deals involving US SPACs occurred in this quarter. Lodging company Sonder going public via a merger with SPC Gores Metropoulos was the first and the second was Grab Holdings, the largest ride-hailing and food delivery firm in Southeast Asia, announcing a merger with SPAC – Altimeter Growth Corp. SPACs are companies that are created solely to merge or acquire another business and take it public. Once a SPAC has been funded, it has two years to find an acquisition target or risk being liquidated and see the funds returned to the original investors. For the target company, one benefit is that SPAC deals include a less intrusive IPO process with fewer disclosure requirements.
Reasons to Buy
Understand the T&T M&A market.
Assess the themes that are driving M&A activity in T&T.
Discover how SPAC deals are becoming increasingly common in T&T M&A activity.
GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
Who should buy?
– CEOs and Senior Executives within the travel & tourism industry should utilize this report to assess how the T&T M&A market is evolving.
– Marketing Directors and CMOs within travel & tourism companies can gather an insightful understanding on trends occurring within the T&T M&A market and deal themes that are shaping specific sub-sectors.
The Star Entertainment Group
Canadian National Railway
Extended Stay America
Table of Contents
Review of the T&T M&A market, H1 2021
Themes driving the T&T M&A market, H1 2021
Deal selection methodology
| Our thematic research methodology
| About GlobalData
| Contact Us
Frequently asked questions
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.
Business Intelligence & Marketing Manager, SAL Heavy Lift
“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.
GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”
Market Analyst & Management, Liebherr-Werk
“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”
Head of Key Accounts, Saab AB
Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.
Marketing Intelligence Manager, Portugal Foods
Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.
Head of Customer Insight and Research, Standard Chartered
Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.
I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.
I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.
Head of Consumer Sensory Insights, Givaudan
“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.
Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”
Senior Account Manager, TSYS
GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise. The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.
I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.
One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.