The Language Travel Industry

Transcription

1 Taking a Domestic and Global Focus on the English Language Industry: Trends and Opportunities AIEC 16 October 2009 Sue Blundell & David Matthews 1 The Language Travel Industry global industry estimated value of over US$10.5 billion in 2007 Ireland 9% Australia 14% Malta 2% NZ 4% S. Africa 1% UK 30% 1,519,376 students travelled to an English speaking country to learn English UK has greatest market share (30% of weeks) Canada 17% USA 23% 2 SOURCE: LANGUAGE TRAVEL MAGAZINE NOVEMBER

2 Language Travel - players major English language speaking destinations English language colleges country Associations eg. English Australia, English UK international Associations eg. IALC cooperative forum = GAELA (Global Alliance of Education & Language Associations) major source countries agents country Associations eg. JAOS (Japan), ASEPROCE (Spain) cooperative forum = FELCA (Federation of Education & Language Consultant Associations) annual meeting of GAELA & FELCA 3 Current environment Current issues: Global Financial Crisis (GFC) currency fluctuations Swine flu changes to visa regimes etc. GAELA & FELCA agreed critical to monitor trends & the mood of the industry survey sent to associations to circulate to their members - July 2009 looking back at 1 st 6 months of 2009 & looking forward to 2nd 6 months 4 2

3 Question 1 Colleges Over the first 6 months of 2009, has the number of international students commencing a language course with your institution grown or declined? Agents Over the first 6 months of 2009, has the number of international students you have sent overseas for a language course grown or declined? 5 Question 1 - colleges declined a lot 11% declined 28% remained stable 24% grown 28% grown a lot 9% 0% 5% 10% 15% 20% 25% 30% 6 3

4 Question 1 - agents declined a lot declined remained stable grown grown a lot 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 7 Question 1 - colleges Australia New Zealand UK Canada USA South Africa International Malta Ireland TOTAL 0% 20% 40% 60% 80% 100% grown remained stable declined 8 4

5 Question 1 - agents Italy - IALCA France - UNOSEL Turkey - TEAG Spain - ASEPROCE Thailand - TIECA Vietnam - VIECA Russia - RAIE Korea - KOSA Brazil - BELTA Japan - JAOS Mauritius - ALICE TOTAL 0% 20% 40% 60% 80% 100% grown remained stable declined 9 Question 2 Do you feel positive or negative regarding the prospects for the language travel industry over the next 6 months?

6 Question 2 - colleges very negative negative neutral positive very positive 0% 5% 10% 15% 20% 25% 30% 35% 11 Question 2 - agents very negative negative neutral positive very positive 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

7 Question 2 - colleges South Africa Australia New Zealand UK USA Canada International Malta Ireland TOTAL 0% 20% 40% 60% 80% 100% positive neutral negative 13 Question 2 - agents Brazil - BELTA Vietnam - VIECA Russia - RAIE Italy - IALCA France - UNOSEL Thailand - TIECA Spain - ASEPROCE Turkey - TEAG Mauritius - ALICE Korea - KOSA Japan - JAOS TOTAL 0% 20% 40% 60% 80% 100% positive neutral negative

8 Question 2 Some of the reasons: positive GFC driving increased demand, currency exchange rates good, forward enrolments strong, specific institution strategies negative GFC, currency exchange rates bad, swine flu, increased competition, negative media, visa issues, fewer employment opportunities for students 15 Question 3 to agents: What were your top 3 destination countries over the first 6 months of 2009? most references in top 3 1 UK 73 2 USA 66 3 Canada 39 4 Australia 34 5 Ireland 31 Question 3 to colleges: What were your top 3 source countries over the first 6 months of 2009? most references in top 3 1 Korea Saudi Arabia 95 3 China 80 4 Japan 66 5 Brazil

9 Question 3 What were your top 3 source countries over the first 6 months of 2009? Australia = Korea China Saudi Arabia New Zealand = Korea Saudi Arabia Japan Canada = Korea Saudi Arabia China USA = Saudi Arabia Korea China UK = Spain Saudi Arabia Germany Ireland = Spain Brazil Italy Malta = Germany France Italy South Africa = Brazil Angola Korea 17 Question 3 What were your top 3 destination countries over the first 6 months of 2009? Spain = UK Ireland USA Thailand = Australia UK USA Brazil = Canada USA UK Japan = USA Canada Australia

10 4) Colleges: Which three source countries grew the most over the first 6 months of 2009? most references in top 3 1 Saudi Arabia 86 2 China 67 3 Brazil Question 4 Which three source countries grew the most over the first 6 months of 2009? Australia = China Vietnam Saudi Arabia New Zealand = Saudi Arabia Thailand China Canada = Saudi Arabia Brazil Korea USA = China Saudi Arabia Taiwan UK = Saudi Arabia Italy France Ireland = Spain Italy France Malta = Italy France Spain South Africa = Brazil Saudi Arabia Angola

11 Question 4 Which countries are seeing increasing demand from students over the first 6 months of 2009? Spain = UK USA Canada Thailand = UK Australia USA Brazil = Canada UK Australia Japan = USA UK Canada 21 5) Colleges: Which three source countries declined the most over the first 6 months of 2009? most references in top 3 1 Japan South Korea Taiwan

12 Question 5 - colleges Which three source countries declined the most over the first 6 months of 2009? Australia = Japan Korea Taiwan New Zealand = Japan Korea Taiwan Canada = Japan Korea Mexico USA = Korea Japan Taiwan UK = Korea Germany Japan Ireland = Korea Italy Spain Malta = Germany Italy Korea South Africa = Germany Korea Switzerland 23 6) Colleges: What are the top 2 challenges currently confronting your institution? great diversity in the responses countries/colleges experiencing declining numbers focused on the causes for the decline as the challenges they need to overcome countries/colleges experiencing increasing numbers focused on the implications of the growth for their operations as their challenges many comments also related to the challenge of reducing vulnerability by diversifying their markets in response to specific declines in traditional markets like Japan & Korea

13 6) Colleges: What are the top 2 challenges currently confronting your institution? countries/colleges experiencing declining numbers focused on the causes for the decline as the challenges they need to overcome: GFC visa regime creating barriers swine flu lack of diversity / dependence on certain markets that are now in decline currency fluctuations negativity / lack of confidence in the market lack of / incompetent government marketing support 25 6) Colleges: What are the top 2 challenges currently confronting your institution? countries/colleges experiencing declining numbers also listed some of the implications of declining numbers as the challenges they need to overcome coping with decreasing budgets maintaining quality cashflow issues maintaining staff confidence / morale

14 6) Colleges: What are the top 2 challenges currently confronting your institution? countries/colleges experiencing increasing numbers focused on the implications of the growth for their operations lack of space /need to expand physical premises sourcing good teachers and other staff sourcing quality homestay families and other accommodation options maintaining quality overdependence on certain markets 27 6) Colleges: What are the top 2 challenges currently confronting your institution? other challenges increased costs government levies, wages, compliance etc. discounting by competitors / requests for discounts from agents visa factories - unregulated, cheap competition identifying creative marketing strategies (including the internet) increased activity from competitor countries and competitor colleges responding to negative image/reputation promoted by the media increased demands relating to regulation/compliance coping with new client groups

15 6) Agents: What are the top 2 challenges currently confronting your organisation? Business Levels maintaining business levels / flow of students [issues associated with GFC, swine flu, increased competition, currency exchange rates, visas] Financial financial issues / cashflow / running efficient operations/controlling costs (as a result of above) Operational coping with changes to visa requirements finding good staff 29 6) Agents: What are the top 2 challenges currently confronting your organisation? Strategic Planning / Marketing diversifying services to provide other sources of revenue / offering more destinations; adjusting marketing strategy & services to match changes in demand; finding new partner colleges; differentiating from other, low quality agencies; establishing a strong internet presence; marketing on a reduced budget/high promotional costs; sourcing good quality accommodation for students / providing quality services

16 7) Colleges: What can your Association do to support you in the current environment? Marketing Advocacy Information / communication Quality PR 31 7) Colleges: What can your Association do to support you in the current environment? Marketing marketing support and information re student numbers, trends & opportunities; raising and maintaining the profile of member colleges as the quality option ; encouraging agents and students to choose association member colleges; developing & maintaining a quality brand for the association & its members; facilitate the development of business relationships with agents

17 7) Colleges: What can your Association do to support you in the current environment? Advocacy lobbying to achieve a supportive/effective visa regime; lobbying on other issues related to our competitiveness eg. work rights for students; lobbying for consistent standards across all colleges - compulsory accreditation; lobbying to minimise compliance costs; working with government to create a strong country brand. 33 7) Colleges: What can your Association do to support you in the current environment? Information / communication keep us informed of developments that could impact on our business; facilitate networking with colleagues to share solutions to issues; collect and share data to allow us to benchmark our performance; ensure you keep in touch with what your members want/need

18 7) Colleges: What can your Association do to support you in the current environment? Quality maintain and promote quality standards; facilitate the sharing of best practice; provide professional development. PR promote the importance and quality of the language travel industry domestically; present a positive image of the language travel industry. 35 7) Agents: What can your Association do to support you in the current environment? Promotion Information / communication Professionalism Advocacy

19 7) Agents: What can your Association do to support you in the current environment? Promotion indirect - promoting study abroad more generally amongst the general public / general PR & key messages in the media; direct promoting my agency to potential students/ coordinated marketing strategies / advertising; promote the use of agents that are members of the association/promote the professionalism of agents; support with holding student fairs/coordination of such events to minimise costs; organising workshops/facilitating links with colleges facilitating fam trips. 37 7) Agents: What can your Association do to support you in the current environment? Information / communication keep us updated on global developments that have an impact on our business; work closely with embassies, consulates and visa offices so that we can get the most updated information; communicate news / information about our country to colleges / stakeholders

20 7) Agents: What can your Association do to support you in the current environment? Professionalism professional development / training; establish standards for members and monitor and promote them; networking opportunities with colleagues; have a strong relationship with other associations to learn from each other and share experiences. 39 7) Agents: What can your Association do to support you in the current environment? Advocacy improve the empowerment of the industry / raise the professional profile of the industry with government; cooperate with college associations to influence policies eg. visa policy; work to influence the policy of airlines; cooperate with college associations to promote the use of agents; lobby government to provide funding support for study abroad

21 Looking forward - focus raising standards & levels of professionalism within the industry; proactive management of the reputation of the industry a focus on the quality of the student experience; increased acknowledgement of the importance of the industry to both source & destination countries: by the general public; in the media; by governments; a strategic long-term approach to developing and sustaining key markets; supporting and developing a strong framework for business relationships between colleges and agents. 41 thank you Sue Blundell sueblundell@englishaustralia.com.au

22 What is your view of your English Language Centre? A) the English language pathway to your university / college? B) an English language pathway to your university / college? C) a strategic part of your university / college? D) a marketing advantage? E) an afterthought when selling your university / college? 43 More than just pathways? 1. Size of the ELT market in Australia - pathways and What are these other students doing? 3. Why consider these other students? 4. Suggested actions

23 1. Size of the ELT market in Australia - pathways and... Some facts and correcting some misconceptions 45 Australia sector trends 100,000 80,000 60,000 Student visa holders only 40,000 20,000 0 Higher Ed. VET ELICOS Schools Other

24 Australia sector trends 160, , , ,000 80,000 ELICOS figures with all visa types included. 60,000 40,000 20,000 0 Higher Ed. VET ELICOS Schools Other ELICOS commencements (EA data - all visa types) 160, , , ,000 80,000 60,000 wh & other visitor student 40,000 20,

25 What do the numbers mean? Over 162,000 students commenced ELICOS courses last year 40% - 50% of these students were on pathway courses (preparing for further study) Which means that 80,000+ students were studying on ELICOS courses other than pathway courses These students were on a variety of visas and studied for various course lengths (2 to 50 weeks) What are these other students doing? General English Cambridge Examinations Preparation programs IELTS/TOEFL/TOEIC Preparation programs TESOL teacher training programs Study Tours And yes, even EAP

26 2. Why are they studying English? These are the 80,000+ students for fun to meet people for their job for their future job to travel to see Australia to know more about the world... infinite other reasons for their future study at home or abroad Some of these will also study in the future somewhere... All of these have friends, families, contacts who also might study in the future somewhere... Undecided where a. Why consider these other students? - Business Diversification (financial now) Diversification (financial future) China? Saudi Arabia? A large group has bought Brand Australia already marketing is expensive taster aspect Use your English language centre strategically penetrate new markets or role of English courses into your existing markets (see Ansoff Matrix) - ROI

27 Ansoff Matrix E n g l i s h? English products? 53 3b. Why consider these other students? Social Inclusion recent concerns re monolingual & monocultural ghettoes affecting language development affecting socialisation skills affecting quality of overall experience students with an academic pathway profile can be limited to certain markets recruiting students with other language learning goals opens up new source countries

28 ELICOS ISB 2009 LIVING: Please say how satisfied you are with the following: (n=8860) The surroundings outside the language school/centre Making friends from other countries during my stay Making friends from my home country during my stay Welcome I received when I arrived at my language school Feeling welcome in this country Opportunities to experience the culture of this country Welcome/pick up at airport/railway/coach station The weather The quality of accommodation Facilities for religious worship Feeling safe and secure Transport links to other places Social activities (events organised by my language school) Making friends from this country during my stay Availability of internet access The cost of accommodation The cost of living (food, drink, transport and social) Opportunities to earn money while studying 52% 52% 52% 71% 69% 67% 90% 89% 88% 86% 84% 84% 82% 82% 80% 80% 80% 76% 55 4a. Suggested actions Universities / colleges Ask if the ELC is a key part of your strategic plan (and not just added on later) Consider the value of your ELC for diversification ($ and social inclusion) and as a key to market penetration / brand building Consider the following Open courses other than EAP Train your marketing staff about the ELC Ensure the ELC has its own marketing plan agility Send your marketing staff to your ELC to market it is closer and cheaper than flying overseas Build the ELC into your strategic plan to extend business and open markets Note: include your ELC in broader university activities, not just marketing

29 4b. Suggested actions? Industry AEI / DIAC / Austrade what about Tourism Australia? why do students choose Australia to study? what is one of Australia s key selling points? LOBBY... and consider what other countries are doing

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32 63 What is your view of your English Language Centre? A) the English language pathway to your university / college? B) an English language pathway to your university / college? C) a strategic part of your university / college? D) a marketing advantage? E) an afterthought when selling your university / college?

33 thank you A/Prof. David Matthews Deputy Chair - English Australia Director - Curtin English Language Centre d.matthews@curtin.edu.au