The likes of Iglu.com, Big Bus Tours and Fleetway Travel have all changed hands over the past 12 months and the level of deal-making is expected to continue in 2016.
Although there was one fewer deal in 2015 than 2014, the estimated total value was higher this year, according to research by advisory firm Catalyst Corporate Finance.
There were 38 deals in 2015 made up of 10 private equity buyers, 27 trade buyers and one float. The total number was one less than 2014.
The total estimated spend was £1.3bn, versus £1.2bn in 2014.
On The Beach was the only travel company to float in 2015.
“I think M&A in travel has been strong and we’ve seen some good companies [sold] for some really good strong prices,” said Mark Farlow a partner at Catalyst.
He added however: “It’s strange that the M&A market has strengthened despite the fact that the geopolitical environment is getting worse.”
Private equity accounted for just over a quarter of all deals, including US giant KKR’s acquisition of thetrainline.com from Exponent.
“It is still led by private equity, with Cox & Kings having a dabble [with the purchase of Laterooms.com], like Saga did last year. The interest, activity and pricing is led by private equity,” Farlow added.
Other deals completed in 2015 included: Hotelplan UK’s recent purchase of Explore for £25.8m, Jac-Travel’s acquisition of TotalStay Group and ITC’s deal for Western & Oriental.
Farlow said he expected next year to be another bumper year for travel but added there could be trouble on the horizon: “2016 will be a strong year for M&A activity. I’m more concerned about a slowdown in the US in 2017 though,” he said.
