A model for predator-prey interactions with herd behaviour is proposed. Novelty includes a smooth transition from individual behaviour (low number of prey) to herd behaviour (large number of prey). The model is analysed using standard stability and bifurcations techniques. We prove that the system undergoes a Hopf bifurcation as we vary the parameter that represents the efficiency of predators (dependent on the predation rate, for instance), giving rise to sustained oscillations in the system. The proposed model appears to possess more realistic features than the previous approaches while being also relatively easier to analyse and understand.