Research and development:
Knowing trends helps you identify opportunities,
design thorough strategy and compete successfully.
Good marketing decisions guided by market research
lead to 25% - 50% increase in revenues within 3 years.
Sources: D.Smith , J.H. Fletcher: The Art & Science of Interpreting Market Research Evidence
Outline
 K-12 global student mobility
 Eastern Europe
 Agent market
 How to best approach this market
Is a designation for the sum of primary and secondary education. Internationally, it is often
understood as educational travel. The expression K-12 is a shortening of Kindergarten
through 12th grade (16-19 years old). It is often used in USA, Canada and Australia.
Statistically, K-12 global international student mobility is measured on secondary level only
or data for primary level are not measured separately.
Source: Macmillan Dictionary, CAPS-I, Australian Human Rights Commission, Whatis.com
Percentage of change in the youth travel sectors
10 YTD Increase
in % of change
180
170
K12
23%
150
Language Travel
58%
140
Study Abroad
71%
Work Experience
22%
Adventure Travel
32%
Other - Group
29%
Other - FIT
31%
160
130
120
110
100
90
80
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
K-12 sector has not been affected by ecomonic downturn as much as some other sectors.
Sources: UNESCO, LTM, OECD, CAPS-I, CSIET, Citizenship and immigration Canada, Ministry of Education NZ,
British Boarding Schools, Australian Education International
Numbers of international K-12 students in last 10 years
120000
115000
114408
112298
110615
110000
105000
103885
103629
100373
100000
97928
97518
95000
90000
88407
85000
83096
80000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
K-12 sector is globally increasing its numbers with 35% 10YTD growth.
Sources: UNESCO, LTM, OECD, CAPS-I, CSIET, Citizenship and immigration Canada, Ministry of Education NZ,
British Boarding Schools, Australian Education International
Numbers of international K-12 students by receiving destinations
16636
New Zealand
2008
USA 25%
Australia 24%
UK 18%
Canada 17%
New Zealand 14,5%
2008
17016
2009
19910
Canada
18319
20545
United Kingdom
21533
28313
Australia
27506
29004
USA
27924
0
5000
10000
15000
20000
25000
2009
USA 25%
Australia 24,5%
UK 19%
Canada 16%
New Zealand 15%
30000
Total number of international K-12 students is estimated to be above 120,000.
Sources: UNESCO, LTM, OECD, CAPS-I, CSIET, Citizenship and immigration Canada, Ministry of Education NZ,
British Boarding Schools, Australian Education International & extrapolated data
Market shares in K-12*
24.8%
24.5%
25.0%
19.2%
20.0%
16.3%
15.2%
15.0%
10.0%
5.0%
0.0%
USA
Australia
United Kingdom
Canada
New Zealand
Canada is one of the strongest K-12 destinations, but its market share is decreasing (1.9% in 3 years).
* Calculated from total number of major international K-12 destinations where data available (2009).
Sources: UNESCO, LTM, OECD, CAPS-I, CSIET, Citizenship and immigration Canada, Ministry of Education NZ,
British Boarding Schools, Australian Education International & extrapolated data
Numbers and market shares of USA
30000
27.5%
29004
26.5%
26.4%
28000
27.0%
27.0%
29000
28268
27924
26.1%
28142
26.0%
27972
25.6%
27000
25.5%
25.3%
26000
Total USA
Global share
25.0%
26201
24.8%
25815
24.5%
25000
24.0%
24000
23.5%
2004
2005
2006
2007
2008
2009
2010
Number of total students in 2010 was 9,0% higher than in 2005, 12,6% higher than in 2003.
Source: Statistics on Semester and Year Programs, The Council on Standards for International Educational Travel
Numbers and market shares of Australia
29000
28.0%
28313
28000
26947
27000
27.2%
27312
26782
26000
26.0%
26.0%
25.6%
25000
24000
23000
27506 27.0%
25095
25.0%
24471
24.7%
23224
23.8%
Global share
24.5%
24.2%
Total students
24.0%
23.6%
22000
23.0%
21000
20000
22.0%
2002
2003
2004
2005
2006
2007
2008
2009
Number of total students in 2009 was 9,6% higher than in 2005.
Sources: Australian Education International
Numbers and market shares of UK
24000
22000
19.5%
18.6%
19.0% 19.0%
18.8%
18.6%
21533
20852
20000
18139
17.4%
18000
18.0%
17.9%
17.7%
18378
17.5%
18226
18030
17.0%
16460
16000
18.5%
20545
16.5%
16.4%
Total students
Global share
16.0%
14000
15.5%
12000
15.0%
10000
14.5%
2002
2003
2004
2005
2006
2007
2008
2009
Number of total students in 2010 was 18,1% higher than in 2005, and 37,4% higher than in 2000.
Sources: Independent Schools Council, British Boarding Schools Workshop
Numbers and market shares of New Zealand
19000
18.0%
18228
18000
16.8%
17448
17000
16000
15000
16636
15.6%
17016
16.0%
15.2%
15259
15207
14.4%
14477
13933
13.4%
14000
17.0%
15.0%
14.5%
14.0%
13.7%
13.0%
13000
12.2%
Total students NZ
Global share
12.0%
12000
11984
11.0%
11000
10000
10.0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
Number of total students in 2010 was 52,1% higher than in 2005, and 19,5% higher than in 2002.
Sources: Ministry of Education of New Zealand
Numbers and market shares of Canada
22000
18.5%
18.2%
20000
17.8%
18875
19506
17.6%
17.4%
18000
17366
15923
18.0%
19910
18319
17.2%
16808
17.5%
17.0%
Total students
16000
15941
16.5%
Global share
16.3%
14000
16.0%
15.8%
12000
15.5%
15.4%
10000
15.0%
2002
2003
2004
2005
2006
2007
2008
2009
Number of total sutdents in 2009 was 8,9% higher than in 2005, and 5,5% higher than in 2000.
Source: Citizenship and Immigration Canada, CAPS-I & extrapolated data
K-12 mobility and market shares in last 10 years
Overall revenues
generated
internationally in K-12
sector are estimated
to be cca 1.5 bn.
140000
120000
100000
80000
New Zealand
60000
Canada
40000
UK
Australia
20000
USA
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
K-12 sector is globally increasing its numbers, whereas Canada‘s market share is decreasing.
Sources: UNESCO, LTM, OECD, CAPS-I, CSIET, Citizenship and immigration Canada, Ministry of Education NZ,
British Boarding Schools, Australian Education International
International K-12 students by sending regions
South and Central Asia
1%
2% 2%
1%
South East Asia
7%
6%
33%
Western Europe
Eastern Europe
22%
Central and South America
TOP Sending
countries:
China, South
Korea, Taiwan,
Hong Kong,
Germany
26%
Sub-Saharan Africa
North America
North Africa and the Middle East
Australia and Oceania
Eastern Europe is already sending more K-12 students than Latin America.
Sources: UNESCO, LTM, OECD, CAPS-I, CSIET, Citizenship and immigration Canada, Ministry of
Education NZ, British Boarding Schools, Australian Education International & extrapolated data
Conclusions
•
K-12 represents cca 120.000 students & 1.5 bn (18.319 & 300m in Canada)
•
K-12 sector is growing more steadily than other sectors
•
Canada is not gaining as much as some other destination
•
Canada’s market share is actually descreasing (1.9% in 3 years)
•
Eastern Europe is already sending more K-12 students than Latin America
Market features
• Multinational diversified region
• Economically growing market
• Interest in English learning
• Increasing demand for education abroad
• Sending more K-12 students than Latin America
• Price sensitive
• Demand for USA/North America
• Agents are predominant booking channel
450m population
29 countries
18 languages
6% K-12 market share
770.000 int students
2.600 stu agencies
228 K-12 agencies
Poland, Czech Republic, Hungary, Slovakia, Belarus, Russia, Ukraine, Estonia, Latvia, Lithuania,
Croatia, Slovenia, Albania, Serbia, Bosnia a Herzegovina, Montenegro, Macedonia, Romania,
Bulgaria, Romania, Georgia, Armenia, Azerbaijan, Kazakhstan , Kyrgyzstan, Turkey, Tajikistan,
Armenia, Moldova, Turkmenistan, Uzbekistan
Purchasing power (K-12 Index) – sending countries
Eastern Europe
Western Europe
Slovenia
Croatia
Czech Republic
Poland
Slovakia
Turkey
Hungary
Latvia
Romania
Russia
Kazakhstan
Bulgaria
Ukraine
Uzbekistan
Turkmenistan
Swizerland
Norway
Germany
Austria
Finland
Belgium
Netherlands
France
Spain
Sweden
Italy
Greece
Portugal
0
500
1000
1500
2000
0
500
1000
1500
2000
Similar to BigMac Index: number of working days one has to work for average wage to
buy High School in Canada. The lower the column is, the stronger the buying power is.
Sources: Laborstats – ILO, 2010
Purchasing power (K-12 Index)
800
700
683
618
600
610
604
549
502
500
479
436
400
417
EE TOTAL
366
340
330
67
65
300
WE TOTAL
200
100
99
96
92
88
85
82
79
76
73
70
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Purchasing power doubles in Eastern Europe, Eastern European can afford twice more than in 2000.
Sources: Labostats - ILO
TOP 100 Most expensive cities in the world (Economist Intelligence Unit)
4. London (UK)
39. Los Angeles (USA)
.....
40. Perth (Australia)
18. Sydney (Australia)
41. Brisbane (Australia)
24. Melbourne (Australia)
41. San Francisco (USA)
28. New York (USA)
43. Toronto
29. Manchester (UK)
44. Washington (USA)
34. Vancouver
36. Chicago (USA)
36. Montreal
Canadian destinations are more affordable than competitive destinations.
Source: Economist
Market demand for education abroad
Language Travel
Higher Education
350000
146000
160000
340000
140000
120000
350000
330000
91000
100000
320000
80000
310000
60000
300000
40000
290000
20000
280000
0
298000
270000
2000
2008
2004
2008
K-12
7000
6000
5000
4000
3000
2000
1000
0
6418
Market demand for education abroad is
increasing in Eastern Europe, the region is
becoming extremely important in the global
student market and offers unique
opportunity in upcoming years.
3104
2003
2009
Demand for English in Europe (incl. Eastern Europe)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Eastern European countries increase their English knowledge faster then some in Western Europe.
The increase is within young generation, their need and learn English more than their parents.
International K-12 students by sending regions
South and Central Asia
2% 2% 1% 1%
7%
South East Asia
6%
33%
Western Europe
Eastern Europe
22%
Central and South America
26%
Sub-Saharan Africa
North America
North Africa and the Middle East
Australia and Oceania
Eastern Europe is already sending more K-12 students than Latin America.
Sources: UNESCO, LTM, OECD, CAPS-I, CSIET, Citizenship and immigration Canada, Ministry of
Education NZ, British Boarding Schools, Australian Education International & extrapolated data
Average prices in Eastern Europe (K-12 receiving destinations)
21051
7667
3736
5000
7152
8285
7641
8243
7521
6592
Year Abroad
11875
13690
Semester
10833
13565
15594
16116
11098
8364
10000
13007
15000
14305
20000
16859
19431
(in CAD; ECB April 20th 2011)
8614
25000
0
Price is an important factor for parents when making purchasing decisions.
Source: StudentMarketing 2011
Average prices in Eastern Europe (K-12 receiving destinations)
Australia Canada France
USA
UK
SA
Semester (tuition, room, board)
14305
8614
8364
5829
10833
7641
Year (tuition, room, board)
21051
16859
15594
13690
13565
8243
Flight tickets (roundtrip)
1850
1122
227
924
269
1110
Visa fee
555
125
0-138
0 - 134
0 - 120
61
TOTAL
23456
18106
15821
14614
13834
9414
(in CAD)
Source: StudentMarketing 2011. On the basis of the offer of Eastern European agents. The prices are in
average. They may vary due accommodation type (homestay/residence) and the school type (private/public).
Average prices in Europe (High School in Canada)
Semester
Western Europe
Eastern Europe
Public
13889
8042
Public
21423
16552
Private
29255
23523
Year
(in CAD)
Eastern Europe is still more price sensitive region than Western Europe (across sectors).
Source: StudentMarketing 2011
TOP K-12 destinations in Eastern Europe
USA
43%
Canada
8%
Australia
5%
UK
44%
Eastern Europeans are traditionally interested in USA,
USA as K-12 however sometimes does not meet the demand from Eastern Europe.
Source: StudentMarketing 2011
Importance of agents
"Parents of prospective students often require the services of an agent to ensure they get exactly
what they are looking for. “In some of these countries,” asserts Declan Millar at High Schools
International, which places students in high schools in Ireland, the UK, Australia, the USA and
Canada, “clients do not have the expertise or experience to make good informed choices and
depend on agencies for this and for visa guidance. They also depend on local agents for
progression guidance to universities.”
Importance of agents
•
Eastern Europe has similar booking habits to other markets
•
Almost all K-12 bookings come from agents (industry experience, no data available)
•
Trend similar to other junior levels in educational sectors (language, jugendreisen, etc.)
•
Parents need agents due trust, orientation, paperwork, problemsolving, etc.
•
Online shopping is not increasing in educational travel ama in other sectors
•
Online presence however is important (cca 60-80% check before visiting stone office)
Conclusions
•
Eastern Europe represents 29 countries (nationality mix)
•
Eastern Europeans have now 2 times stronger purchasing power than in 2000
•
Eastern Europe is growing and already sending more K-12 students than Latin America
•
Canadian schools could gain from limited supply in USA
•
Canadian schools could benefit from sensitive price strategy
•
Canadian schools should approach agents as the most important channel
There are 29 countries and 2600 youth and student travel agents.
Agent market is maturing, but there are still mostly small agencies.
Average sending numbers per agent is 258.
Schools need to be prepared to work with several agencies in region.
To maintain effort and overheads, educators need to be selective what agents to work with.
Features of agents or how to qualify agencies:
- Age / Experience
- Portfolio
- Offices / Counsellors
- Sending numbers
- Price levels
- Workshop attendance
- Credentials / Association membership
Source: StudentMarketing 2011
Profile of agents by experience/age
30.0%
24.5%
25.7%
24.5%
25.0%
20.0%
15.0%
12.0%
9.6%
10.0%
5.0%
0.9%
0.6%
30 to 40
40 to 50
1.8%
0.0%
1 to 5
5 to 10
10 to 15
15 to 20
20 to 30
50+
Agent market is maturing, not so many new agencies, market is taken by old agencies who have
made to buid their market position. These agencies are the best targets to make representatives.
Source: StudentMarketing 2011
Profile of agents by portfolio (number of sectors they promote)
45.0%
41.4%
40.0%
35.0%
30.0%
27.2%
25.0%
19.0%
20.0%
15.0%
10.0%
6.3%
3.3%
5.0%
2.6%
0.3%
0.0%
1
2
3
4
5
6
7
EE agents are more diversified, their promote more programs/sectors than agents in
Western Europe or Asia. It is an attribute Canadian schools could use for their benefit.
Source: StudentMarketing 2011
Profile of agents by number of inter/national offices
80.0%
74.2%
70.0%
60.0%
57.2%
50.0%
National offices
40.0%
International Offices
30.0%
20.0%
10.0%
12.8%
10.5%
7.7%
2.2%
4.2%
0.7%
3.7%
1.9%
1.2%0.3%
0.7%0.4%
11-15
15-20
1.1%0.8%
0.0%
1
2-3
4-5
1-5
6-10
20 +
EE agencies are usually small operations and have no more then 1 office. Canadian schools need to be
prepared to work with several representatives in order to cover the region or countries like Russia.
Source: StudentMarketing 2011
Profile of agents by number of students administered by one employee
39%
40
35
31%
30
25
20
13%
9%
15
9%
10
5
0
1-10
10-50
50-100
100-200
200 and more
Most EE agents have qualified and sufficient personel to provide high level of
consultancy and customer service the parents and youngsters require.
Source: StudentMarketing 2011
Profile of agents by number of students administered by one office
39%
40%
35%
28%
30%
25%
15%
20%
12%
15%
10%
6%
5%
0%
1-10
10-50
50-100
100-200
200 and more
Most EE agents still offer in person customer service in their offices, it is also one of
the reasons why the market is broken down to many small agencies.
Source: StudentMarketing 2011
Profile of agents by sending numbers
50
46.8
45
41
40
36.8
34.8
35
Western Europe
30
25
21.7 22.1
21.9
20
Eastern Europe
16.2
13.5
15
10
6.9
6.6
4.4
5
Germany
20.6
4.8
1.9
0
1-10
10-100
100-500
500-1000
1000 and more
Even though Eastern Europe as a region represents a significant sending region, most agents in
Eastern Europe do not send high number of international students.
Source: StudentMarketing 2011
Profile of agents by price levels
38.2%
36.4%
40.0%
There are various financial
methods in between
educational institution and
educational agency:
35.0%
30.0%
25.5%
25.0%
20.0%
- Gross prices/Commission
- Gross prices/Agency Fee
- Net Prices
- other
15.0%
10.0%
5.0%
0.0%
below
average
over
Eastern Europe is still very price sensitive and most agents need to adjust the price (only 25% of
agencies promote they products for an average price).
Source: StudentMarketing 2011
Profile of agents by workshop attendance
K-12 agents who have attended educational
b2b workshops in the past 3 years.
There are dozens of b2b
workshop opportunities
in Educational Travel:
Did not
attend
56%
Attended
workshop
44%
ALPHE UK
StudyWorld
WYSTC
ALPHE Russia
ICEF Berlin
BBSW
ICEF Moscow
ALPHE Istanbul
....
Regarding agent attendance, workshops are one of the best occasions where CAPS-i
or individual Canadian schools could build their profile and get new agent partners.
Source: StudentMarketing 2011
Profile of agents by association membership
K-12 agents who are members of association.
There are 110 agent associations
worldwide, and dozens in Eastern
Europe, that track quality of agencies:
79%
•
•
•
21%
Member
AREA
TEAG
UED
etc.
Not a member
For CAPS-i or individual Canadian schools, agent associations represent a unique
opportunity to increase their profile and open leads to new agent partners.
Source: StudentMarketing 2011
BEST agents in Eastern Europe
Using previous understanding and profiling agents, identification of the most suitable quality
agencies can be done as mentioned herein (sample picture only).
Source: StudentMarketing 2011
Conclusions
•
Agent market is maturing, but still many small agencies in region
•
2.600 agencies in 29 countries
•
Educators need to be selective what agents to work with
•
There are up to 20 criteria educators can consider
•
228 K-12 agents and 800 edu agents (LT & HiEd) in Eastern Europe
•
Selective approach enables educators to establish agent relationships effectively
Approach
•
Educational value – emphasize academic value in comparison to other destinations
•
Translations – to ease understanding for ultimate decision makers/parents
•
Competitive price – individually by market
•
Focus on agents – agents are predominant channel
•
Be selective what agents to work with (out of 2.600)
•
Individual educator: attend workshops; followed by sales trips
•
Association: Branding at associations, workshops, trade mission; followed by FAM trip
Educational value
Pros
Cons
Canada
bilingual
USA
price
unexplored country
attractive for young people
fresh environment and wild nature
growing economy
high standard in education (TOP
universities)
price
overcrowded
quite unknown
"everybody goes there"
Canadian schools could benefit from emphasizing academic value and how it can lead students
to first rate colleges and universities (as othet schools and study destination do actively).
For Eastern European market, it is important to present it in major local languages as ultimate
decision makers do not speak English. It represents a significant competitive advantage.
Source: StudentMarketing 2011
Competitive price
Canada
USA
Difference
USA
Semester (tuition, room, board incl.)
8614
6592
- 2022
↓23,5%
Year (tuition, room, board incl.)
16859
13690
- 3169
↓18,8%
Tuition only
8219
8530
311
↑3,8%
Homestay only (year)
8640
5160
3480
↓40,3%
Flight tickets (roundtrip)
1122
924
- 198
↓17,6%
Visa fee
125
0 / 134
- 125
(in CAD)
Should it be within possibility, competitve pricing and interactive pricing approach are relevant.
Source: StudentMarketing 2011, Caps-I
Potential agent partners
140
130
K-12 agents by destinations
127
120
97
100
79
80
67
66
61
60
48
37
40
15
20
0
UK
USA
Canada
Germany
France
Australia
Ireland
New
Zealand
Malta
South
Africa
57,4% of High School agents do not promote Canada and represent an opportunity for
Canadian schools to have fast approach to experienced agencies with existing outreach.
Source: StudentMarketing 2011
Potential agent partners
87
90
K-12 Agents by sectors
80
70
58
53
60
50
40
30
20
15
9
6
5
10
0
K12
Language
Study abroad
Work
Experience
Adventure
Travel
Other - Group
Other - FIT
91% out of 2600 agents in Eastern Europe do not promote High School programs. Agents
promoting Language and Higher Education represent an opportunity for Canadian schools.
Source: StudentMarketing 2011
Potential agent partners - approach channels
EVENTS
ACTIVITIES
•
Workshops
•
Educational Fairs
•
Trade missions
•
Webinar / Online Training
•
Recruitment trips
•
Online direct presentation
•
FAM Trip
Best selection and succession of these agents-to-reach depend on subject (association,
individual school), current status, objectives and budgets of particular institution.
CASE STUDY





educational provider
located in Canada
language, work and study,
internship, career college
10 years in industry
total 6.000+ students
2005


2006
2007
2008
2009
Goal: indentification of agents and market opportunities in EE (done in 2007)
Result: 35% increase in 2008, 48% increase in 2009
2010
General Conclusions
•
K-12 represents cca 120.000 students & $1.5 bn (18.319 & $300m in Canada)
•
K-12 sector is growing, but Canada is not gaining as other destinations
•
Eastern Europe is a growing region
•
Multinational population with increasing demand for education abroad
•
Academic value is not well known and needs to be promoted more
•
Agents represent predominant recruitment channel in this segment and region
•
Regarding number of agencies, selective approach but in person b2b meetings are needed