According to Catalyst, the average deal size reduced in 2017 to £140 million (for disclosed deals) compared with £166 million in 2016.

However, Bobby Fletcher, director at Catalyst, believes 2018 will see a different trend: “Buy-and-build strategies should drive healthy M&A volume [this] year at the lower end of the value spectrum,”he said.

“Additionally, several high-profile assets are currently in the market and due to transact in the new year.

“Therefore, the market promises to deliver an increase in the number of deals and overall value.”

Fletcher said macroeconomic conditions would “continue to threaten to dampen consumer confidence and bring political uncertainty”.

“We expect M&A activity to continue to focus on the more resilient pockets of the UK consumer, as well as travel infrastructure and technology,” he said.

Catalyst believes luxury travel “remains an attractive and resilient sub-segment” – noting Travel Leaders Group’s acquisition of Colletts Travel in February 2017 – and believes consumer demand is generally evolving towards specialist travel at the luxury end of the market.

“There is an increasing shift of demand towards specialist travel as experience transcends ostentation for the new luxury customer,” said Catalyst, adding that KKR’s £325 million acquisition of Travelopia, Tui’s specialist travel division, “signalled a move towards a global platform for further growth and consolidation of a portfolio of specialist travel brands offering niche travel experiences to high-end consumers”.

Educational travel was also highlighted as a growth market. Catalyst said parents’ willingness to spend on education for their children was seen as less likely to be affected by any potential consumer downturn.