Travel mergers and acquisitions on the rise again, says advisory firm

Business and financial advisory firm Grant Thornton UK recorded 11 deals in the sector in the third quarter of 2023, a 10% increase on the previous quarter and a 38% increase year on year.  

Grant Thornton said deals were prompted by the post-pandemic demand for travel, adding confidence in the sector was “slowly” starting to rebuild. 

It added: “Private equity (PE) interest in the sector has increased this quarter, accounting for 27% of deals in Q3, compared to 10% in Q2. PE deals in the third quarter of the year were characterised by minority investments and fundraisings, demonstrating interest from growth-orientated investors.”

Among notable deals in the period was TravelLocal’s £8.3 million fundraising from investors in September. TravelLocal specialises in tailor-made travel using local experts.

Another was Portman Travel Group’s acquisitions through its Clarity and Destination Sport subsidiaries. In August, Clarity acquired corporate travel management company Agiito from Capita for £36.5 million. In September, Destination Sport announced the acquisition of Sportsworld. 

The period also saw the property sector invest in hotels. Sweden’s Pandox AB acquired the Hilton Belfast from Starwood Capital for around £40 million and Henderson Park bought Edinburgh’s Waldorf Astoria for £85 million from UAE-based Lulu Group International. 

Nicola Sartori, Grant Thornton’s partner and head of consumer and travel, said: “Following the rebound in overseas travel in 2022, it looks as if appetite for travel companies is here to stay. 

“Passenger confidence is starting to feed through to M&A activity as financial investors and trade buyers become more bullish about the sector’s recovery. Private equity interest is also starting to re-build in the sector, with a notable increase in activity this quarter compared to last.”