HIG Capital has completed its acquisition of Shore Excursions Group, the world's largest independent provider of cruise shore excursions, marking the private equity firm's latest investment in consumer-facing travel services. The deal positions HIG Capital to capitalize on growing demand for personalized travel experiences as cruise passenger volumes continue recovering from pandemic lows.
Shore Excursions Group, based near Fort Lauderdale, Florida, has delivered more than five million tours across hundreds of ports worldwide since its founding in 2008. The company offers over 4,000 curated experiences spanning major cruise destinations, from Mediterranean cultural tours to Caribbean snorkeling expeditions.
Founded in 1993 by Sami Mnaymneh and Tony Tamer, HIG Capital manages approximately $71 billion across various investment strategies. The firm has increasingly focused on businesses that combine technology platforms with essential services, particularly those serving fragmented markets where consolidation can drive growth.
"Shore Excursions Group provides cruise guests with more authentic, higher-quality experiences in the ports they visit around the world," said Paul Kiritsy, chief executive of the company. "With HIG's support and expertise in scaling consumer and technology-enabled services businesses, we are well-positioned to enhance and expand our offerings."
Disrupting Traditional Cruise Excursions
Shore Excursions Group operates as an alternative to tours sold directly by cruise lines, typically offering lower prices and smaller group sizes. The company vets local tour operators in each port and packages their offerings into bookable experiences accessible through travel agencies and direct consumer channels.
Cruise lines generate substantial revenue from onboard excursion sales, often taking significant commissions from tour operators while limiting passenger choices to approved vendors. Shore Excursions Group's model bypasses this system by contracting directly with local operators and marketing tours to passengers before they board ships.
The company's proprietary booking platform handles reservations, payments, and customer service across multiple languages and currencies. This technology infrastructure represents a key asset that differentiates Shore Excursions Group from smaller competitors lacking similar capabilities.
Travel advisors account for a substantial portion of Shore Excursions Group's distribution network. These intermediaries recommend tours to clients during the cruise planning process, often bundling shore excursions with cruise bookings and other travel arrangements. The company has cultivated relationships with thousands of agencies worldwide.
Tyler Levin, managing director at HIG Capital, emphasized the company's market position. "Shore Excursions Group is a clear market leader with a compelling value proposition for travelers, travel advisors, and operator partners," he said. "We look forward to partnering with Paul and the entire Shore Excursions Group team to accelerate growth."
Cruise Industry Recovery Drives Demand
Global cruise passenger numbers reached approximately 31 million in 2024, approaching pre-pandemic levels as major cruise lines deployed new ships and expanded itineraries. Industry forecasts project continued growth driven by demographic trends, with older travelers representing a core customer segment for cruise vacations.
Shore excursion spending represents a significant component of total cruise vacation costs. Passengers often allocate several hundred dollars per person for tours during multi-port itineraries, particularly on longer voyages to regions like Alaska, the Mediterranean, or Northern Europe.
Shore Excursions Group's guarantees-including satisfaction, low price, and return-to-ship commitments-address primary customer concerns about booking independent tours. The return-to-ship guarantee is particularly important, as passengers who miss departure face substantial costs to rejoin their vessels at subsequent ports.
The company has received recognition from major travel publications for service quality and customer satisfaction. These accolades provide credibility that helps Shore Excursions Group compete against the convenience of booking tours directly through cruise lines.
HIG Capital's Consumer Services Portfolio
The Shore Excursions Group acquisition fits within HIG Capital's broader investment thesis around consumer services businesses that demonstrate recurring revenue characteristics and opportunities for operational enhancement. The firm has backed numerous companies serving leisure and hospitality markets.
In November, HIG Capital announced an investment in Rely Home, a nationwide home warranty provider operating across all 50 states. That transaction reflected similar themes: a technology-enabled platform serving fragmented markets with opportunities to improve customer experience through operational improvements.
HIG Capital has also been active in the broader travel and hospitality sector through various portfolio companies. The firm's investment professionals bring experience across consumer businesses, often working with management teams to implement growth initiatives and strategic acquisitions.
Shore Excursions Group's relationships with local tour operators worldwide create potential partnership opportunities that could enhance offerings or expand into adjacent markets. The company's booking platform could potentially support additional travel services beyond shore excursions.
Kiritsy noted the company's network as a competitive advantage. "We have built a trusted network of local partners, a broad portfolio of curated excursions, and a technology platform that enables us to deliver exceptional value to travelers and travel advisors alike," he said.
HIG Capital did not disclose financial terms of the acquisition or indicate whether Shore Excursions Group's founding shareholders retained any ownership stake. The firm also did not specify which of its funds completed the transaction or provide details about potential add-on acquisition targets.
Technology and Service Enhancement Plans
The booking platform underlying Shore Excursions Group's operations will likely receive continued investment under HIG Capital's ownership. Technology improvements could enhance user experience, streamline operations, or enable new service offerings that leverage existing customer relationships.
Shore Excursions Group competes not only with cruise line excursion programs but also with other independent tour operators and online travel agencies that have expanded into shore excursion bookings. Maintaining competitive advantage requires ongoing platform development and service quality improvements.
The company's small-group focus appeals to travelers seeking more intimate experiences than the large bus tours often associated with cruise line excursions. This positioning aligns with broader consumer trends favoring authentic, locally-focused travel experiences over standardized tourist activities.
Levin highlighted growth opportunities ahead. "We look forward to partnering with Paul and the entire Shore Excursions Group team to accelerate growth, invest in technology and product innovation, and continue delivering exceptional service to the company's global customer base," he said.
HIG Capital's involvement may also facilitate partnerships or commercial relationships with other portfolio companies operating in adjacent sectors. Such synergies represent a common value creation strategy for private equity firms managing diversified portfolios.