M&A in travel has continued a resurgent course in 2025, with tour operators and luxury travel seeing several buy-and-build deals backed by private equity. Deal volumes increased by 8% on the previous quarter and saw a 35% increase YoY when compared to Q3 2024. 

Investments into the UK from abroad have also increased, alongside a considerable rise in UK investment abroad. Domestic investments are significantly down for the first time in several quarters.

This is the highest deal volume we’ve seen since we began tracking travel deals data in Q1 2018. Despite this, we believe market sentiment doesn’t yet correspond to this heightened level of M&A activity. While there are a lot of reasons to be positive, businesses are still facing the challenges.

Announced M&A activity in travel and accommodation quarterly (UK targets or acquirors)

Deal volume

Deal value

Tour operators, luxury travel and travel tech lead activity in Q3

M&A activity across the tour operator and luxury travel subsectors remained robust, underpinned by sustained demand for high-quality, experience-led propositions. Tour operators continued to attract strategic and financial investors seeking resilient, niche platforms with strong customer loyalty and differentiated product portfolios – as seen in Wexas’ acquisition of 2by2 Holidays. Within luxury travel, buyers remained particularly active, targeting brands with curated itineraries – such as Abercrombie & Kent acquiring Borealis DMC. Transactions in both areas increasingly reflected a buy-and-build approach, as investors focused on scalable models, premium margins and opportunities to consolidate specialist offerings under well-capitalised ownership.

Travel tech saw increased deals activity last year, which has continued into this year – particularly large generalist travel businesses consolidating and acquiring travel tech to add new divisions and capabilities to their own offerings. For example, Travel Curious’ acquisition of Redeam Inc. We saw more travel tech deals complete in October 2025, but we’ll discuss this in more detail as part of our Q4 report early next year.

Private equity checks in

Investments rose by 11% compared with the previous quarter and were up 43% on the same period last year, signalling continued confidence in the sector. Activity was notably driven by private-equity-backed buy-and-build strategies, with several sponsors accelerating expansion across specialist and premium segments. 

However, PE activity tracked was mostly “bolt-ons” to reassure existing investments. 

Active Travel Group, backed by Mobeus, completed its acquisition of MV Travel — its third transaction to date — further enhancing its inbound, high-end travel offering. MV Travel specialises in luxury UK and Ireland itineraries for US-based clients, reinforcing the group’s focus on curated, experience-led travel.

TravCorp, supported by BGF, acquired Specialist Holidays Group in a move designed to strengthen its position across the specialist, premium and tailor-made travel markets. Barons Eden also completed its first acquisition since receiving investment from Alchemy Partners, adding the Ardencote Hotel to its portfolio. And, in the sports travel segment, Forward Travel completed its inaugural acquisition following investment from Arete Capital, supported by HSBC debt funding, through its investment in findagolfbreak.com.

The quarter reflects a clear uptick in investor confidence, with private-equity-backed platforms driving targeted expansion across premium, specialist and experiential travel segments.

Deal volume

Deal value

Key deals in travel for Q3 2025:

Wexas acquires 2by2 Holidays.

Specialist tour operator Wexas acquired independent wildlife tour operator 2by2 Holidays. More activity in the niche/specialist tour operator market

Travel Curious acquires Redeam Inc.

Travel Curious Ltd (a B2B traveltech platform) acquired Redeam Inc., a Boulder, Colorado-based online third-party tickets distribution automated platform operator. The acquisition aims to create the industry's most comprehensive end-to-end platform for travel experiences, simplifying the fragmented market by connecting suppliers (like theme parks and tour operators) with distributors (like hotels and loyalty programs). As part of its growth strategy, Travel Curious is relocating its global headquarters from London to Wilmington, Delaware, making it a U.S.-based company. It will maintain operational offices in London and Madrid.

Hays Travel acquires Victoria Travel Group

Hays Travel Ltd has acquired Victoria Travel Group Ltd, and online cruise travel operator (including its recognised brands cruise.co.uk, Seascanner, and the German division Kreuzfahrtberater.de.). Victoria Travel Group has built a commanding reputation for its digital-first approach, expert cruise content, and customer-centric service

Active Travel acquires MV Travel.

Active Travel Group’s acquisition of MV Travel marks its third strategic bolt-on, strengthening its high-end inbound offering through the addition of a specialist in luxury UK and Ireland itineraries for US travellers.

Abercrombie & Kent acquires Borealis DMC

Abercrombie & Kent Ltd, the United Kingdom based provider of luxury travel experiences has acquired Borealis DMC Ltd to expand its position as the world's largest network of luxury Destination Management Companies (DMCs) – with presence in Denmark.

Trip.com Group acquires Key Travel

Trip.com Group (which is based in Shanghai and Singapore, also owns major travel brands such as Ctrip, Skyscanner and Qunar) acquired Key Travel (nfp sector travel specialist). While Trip.Biz is acquiring Key Travel’s EMEA business, Los Angeles-based Globespan Travel Management has purchased Key Travel Inc, the US division of the TMC, in a separate deal.

Direct Travel Inc. acquires ATPI

Direct Travel Inc, the United States based travel management company has acquired ATPI Ltd, the United Kingdom based travel management company.

A promising forecast ahead, with a few clouds remaining

Q3 2025 marked a significant acceleration in travel-sector M&A, with deal volumes reaching their highest level since tracking began in 2018, driven by strong activity across tour operators, luxury travel and travel tech, alongside a notable rise in cross-border investment. Despite this momentum, broader market sentiment remains cautious, as many businesses continue to face operational and economic pressures even as investors pursue selective, strategically aligned opportunities.

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