ALTO's Global Directions in Language Travel 2009

Global Directions in Language Travel

2008

Author Greg Richards

Year 2008

Title ALTO’s Global Directions in Language Travel, 2008

Publisher WYSE Travel Confederation

Production ALTO’s Global Directions in Language Travel was produced with fully sustainable materials, using FSC paper and soy-based inks.

ReseaRch PRogRamme

WYSE Travel Confederation and ALTO are committed to under-standing the ever changing characteristics, motivations, and needs of young travellers. The Confederation and ALTO gather, analyse and share important research data and market intelligence with their members, academics, corporate and government decision-makers, and the general travelling public. Our investment in research and market intelligence informs the policies, services and products which make international travel and educational experiences exciting, safe, accessible and affordable for young people.

For more information about WYSE Travel Confederation’s research programme, please visit: www.wysetc.org. Go to the “What we do” section, and click on “Research & Publications.”

For a full listing of ALTO’s Global Directions in Language Travel surveys, visit: www.altonet.org.

ALTO thanks the following national associationsfor their collaboration on the 2008 Global Directions

in Language Travel:

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Global Directions in Language Travel 2008

EXECUTIVE SUMMARY

The main findings of this report are:

The global language travel market is growing rapidly in many countries around the •world. There are now more than 1.3 million students studying English abroad, and many more studying other languages.

Language travel is a high-value market which injects money directly into the local •economy. The total value of the language travel market can be conservatively esti-mated to be US$8 billion a year (or almost 7% of the global youth travel market).

The market is growing rapidly in most countries, with growth rates in excess of 7% •per annum in many markets. This growth looks likely to continue in the future, as survey respondents expect their markets to grow by more than 10% a year to 2010. This is far more than tourism industry growth rates as a whole, which were around 3.6% for the period 2000 to 2006, according to the UNWTO.

The 2008 • Global Directions in Language Travel survey attracted 146 respondents, a considerable increase from previous years. In total, the number of language schools covered by the 2008 survey is 239. This is a significant increase from the 2007 survey, which covered 116 schools. The schools participating in the 2008 survey had a total of 330,000 students enrolled in 2007, a vast increase on the previous survey (40,000).

The bulk of the respondents came from Europe (60%) and North America (24%), •which reflects their position as major language travel destinations and source regions. Of these respondents, 68% were language schools and 25% agents.

The average school had 1,400 students in 2007 and the average agent sent over •2,600 students. There is a clear trend over time toward decreasing average school size and increasingly large agents. Both schools and agents tend to be relatively small, with the majority having less than 25 staff. Schools obtain about three quar-ters of their turnover from language travel products, while agents only generate 61% from language travel.

Language students tend to be young, with the 21-24 age group being the largest •single category. However, there is some evidence of an emerging mature student market. The average length of study is around five weeks, but the indications are that course length is falling compared with previous years. The most common courses offered are non-degree courses and college/university preparatory courses.

The main source countries for language schools in 2008 were Germany, Spain, and •South Korea. The United Kingdom and the United States maintained first and second place respectively in terms of destination countries. In the future, respondents most likely see the US and China increasingly growing as important language travel desti-nations in general.

Schools recruited most of their students via agents in 2007, followed by Internet •bookings. Agents got most of their business from referrals and Internet bookings. However, repeat customers are also very important (18%).

Products that respondents see as becoming more popular with students in the next •three years include online courses and business languages. For the language travel industry as a whole, however, growth was most likely predicted in work experience programmes, career development, and adventure activities.


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INTRODUCTION

About ALTO

ALTO is an association operating under the umbrella of the World Youth Student & Educa-tional (WYSE) Travel Confederation. Established in 1998, ALTO acts as the only global forum for high-quality language travel agents and schools. The ALTO network of trusted members is comprised of 170 agencies, schools, and national language travel associations. ALTO consid-ers trusted agent/school relationships as the key to success in the language travel business. With this mind, ALTO facilitates its members’ ability to enter into business relations with each other on the basis of mutual trust, and with a view to long-term partnerships.

Global Directions in Language Travel

The Global Directions in Language Travel reports are based on the collective knowledge and experience of the language travel industry and are designed to identify and analyse key market trends and developments.

In the past, the Global Directions research has been undertaken amongst ALTO members only. In 2008, a decision was taken to increase the coverage of the survey to expand its global scope and representative sample, as well as allowing more detailed regional analysis.

The data were collected online through the annual ALTO Global Directions survey. The first ALTO Member Survey was conducted in early 2004 and the continuation of the project has allowed ALTO to build sets of data that can be compared with previous years. In 2008, the expanded base of the survey makes such comparisons more difficult, although year-on-year data have been presented where appropriate. The idea behind this survey project is to provide businesses in the language and educational travel industry with a benchmarking opportunity to measure their own performance, expectations, and aims against those of other industry professionals.

Background to the Language Travel Market

Many recent studies underline the fact that language travel has become a major travel niche market in recent years. In particular, the major world languages such as English, Spanish, and French currently dominate the market, but in the future other languages are expected to become more important, particularly Chinese.

A British Council report in 2006 (Vision 2020: forecasting international student mobility) indicated that demand for international student places in the ‘Main English Speaking Desti-nations’ is expected to grow from 1 million in 2003 to 2.6 million by 2020. The same report also indicated that 20 million people worldwide were learning Mandarin, and this figure was expected to rise to 100 million in the next few years.

Estimating the current size of the global language travel market is challenging due to the lack of consistent statistics. Although data are collected on international student arrivals to the Organisation for Economic Co-operation and Development (OECD) countries, there is no separate information available on language students. What little information there is therefore tends to come from industry associations.

Language Travel Magazine compiles figures from a number of different countries to provide an overview of the main English language travel destinations. The latest study indicates that in 2006, student numbers in (destinations) reached 1,345,589, a 5.8% increase on 2005. Simi-lar figures were also compiled for Fáilte Ireland by Indecon International Economic Consult-ants (2007) in their review of the international English language market. They concluded that ‘the general trend in English as a Foreign Language (EFL) over the past few years has been one of expansion’ (p. 2). The figures compiled for this report indicate a slower rate of growth, with a 2.5% increase between 2004 and 2005. However, there was an 11% increase in stu-dent weeks in 2005, which seems to suggest that average length of stay was increasing. Over the longer term, most major English language destinations have shown considerable growth.

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Cross-country comparison of growth in EFL enrolment figures: 1998-2005

Country 1998 1999 2000 2001 2002 2003 2004 2005

UK 566,000 563,000 549,000 487,000 - - 617,038 586,186

Canada - - - - - - 141,762 178,261

USA 44,000 73,000 75,000 78,000 - - 156,375 162,055

Ireland 139,000 116,000 99,000 99,000 - - 95,160 113,940

Australia 49,000 63,000 66,000 81,000 79,418 78,338 91,129 101,087

Malta 31,105 35,506 41,515 45,000 53,975 53,241 55,578 61,607

New Zealand 15,000 18,054 26,203 41,725 71,053 50,689 51,456 35,749

Total 1,221,438 1,252,720

Source: National Associations, Language Travel Magazine, October 2006

A comparison of the top five nationalities for different destination countries also shows that Japan and Korea are very important markets for most countries.

Top five nationalities of EFL students by host country in 2006

Australia Canada Ireland Malta New Zealand UK US

China S. Korea Italy Germany Japan Japan S. Korea

S. Korea Japan Spain / Switzerland Italy S. Korea Switzerland Japan

Japan Mexico France France China Brazil Taiwan

Switzerland Switzerland Germany Austria S. Korea S. Korea Brazil

Thailand Brazil Austria RussiaTaiwan /

Switzerland /Germany

France Saudi Arabia /China

Source: Indecon Research

In terms of costs, the average one-month English language course costed around €765 in 2006, a rise of around 41% compared with 2001. The UK was the most expensive destina-tion on average, with a one-month course costing over €1200.

Cross-country comparison of average cost of a one-month English language course in 2006

Country € UK 1212Ireland 804USA 802Canada 681New Zealand 672Australia 647Malta 540Source: Language Travel Magazine Global Comparison

Market growth is also evident from the studies made by individual language travel destina-tions in recent years. In the UK, it was estimated that over 600,000 EFL students arrived in the UK in 2004, although this fell to just below 590,000 in 2005. In relation to the number of EFL schools/providers in the UK, we have estimated that there are up to 800 providers in op-eration throughout the country. Of these, 397 private language schools, in addition to colleges and universities, are accredited by the British Council.

In Ireland, research among Advisory Council for English Language Schools (ACELS)-approved schools indicates that there are around 130,000 students annually who come to Ireland to undertake English language courses. The economic contribution of these students was esti-ated to be over €500 million in 2006. The number of recognised EFL schools in Ireland rose from 113 in 2000 to 120 in 2007 (+6.2%).


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The growth of international student travel and associated language learning is stimulating governments around the world to devote more attention to this important market. For ex-ample, Spain introduced a national language tourism policy in 2002. There is now formal collaboration between Turespaña, the Cervantes Institute, and the Spanish Language Schools Federation to develop and promote language travel to Spain. Since 1995, demand has grown between 7% and 9% a year, and the Spanish market is now estimated to be worth €255 mil-lion in terms of direct student spending (and around €650 million if all associated spend is taken into account). The average language student spends €1,960 during their trip in Spain, far more than the average tourist (€1,500). The total market for language travel grew from 150,000 students in 2002 to 180,000 in 2005.

Other Spanish-speaking countries are also capitalising on their linguistic resources. In 2005, Argentina received 23,431 language tourists, a growth of 41% compared with 2004. A further 50% increase came in 2006, when total arrivals reached 35,000. 50,000 were expected for 2007. The value of the industry has increased accordingly, from US$23 million in 2005 to US$50 million in 2006.

In Australia, total English Language Intensive Courses for Overseas Students (ELICOS) enrol-ment numbers for 2006 were 121,858, an increase of 21% from 2005 (101,087). 2006 also saw an increase from 1,142,016 to 1,333,872 student weeks (a 17% increase). The total economic impact of all enrolments increased from AU$1,082 million in 2005 to AU$1,223 million (an increase of 16%).

In Canada, Language Travel Magazine estimated that enrolments of EFL students rose from 141,762 in 2004 to 178,261 in 2005, an increase of over 25% over this period. In the US, the Open Doors report indicated that 45,167 international students enrolled in intensive English programmes in 2006, an increase of 3.6% from 2005. The number of US students studying languages abroad also grew in 2006, with a total of 17,547 students - a growth of 7.8%.

According to data from the Language Travel Magazine’s 2006 survey and Federation of English Language Teaching Organizations Malta (FELTOM), Malta has between 60,000 and 70,000 EFL students in total. This number is very high considering the population of Malta is around 400,000.

Host Family Accommodation

In most of the destinations reviewed, the use of host family accommodation is very important for language students. As well as providing an economical form of long-stay accommodation, home stays also support the language learning process and aid cultural exchange.

Percentage of students using host family accommodation, by country

Ireland 74.7%Canada 65%UK 60%Australia 56%USA 21%Malta 17%

Source: Language Travel Magazine

The fact that language students often stay in local communities means that they spend mon-ey directly with local suppliers, increasing the local economic impact of their stay. Because they stay for long periods of time, they also tend to spend more in total than other types of tourists. Many students are also visited by friends and families during their stay, which in-creases the economic impact even further. Some figures on economic impact are available for individual destinations, although these figures are derived from different estimation methods, and may not therefore be directly comparable.

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Economic impact of language travel, various countries, 2006

Country Year Impact Impact in US$

Argentina 2006 US$50 million $50 million

Australia 2006 AU$1223 million $1169 million

Canada 2006 CA$1788 million $1759 million

Ireland 2006 €500 million $769 million

Spain 2006 €255 million $400 million

These figures indicate that the total value of the language travel market in these five coun-tries alone is over US$4 billion. If these economic impact figures are grossed up to the whole world market, then the total value of language travel can be conservatively estimated to be in excess of US$8 billion.

Issues In Language Travel

Visas Many language travel destinations are finding themselves affected by stricter visa controls and rising visa fees. In the UK, for example, the costs of student visas were raised from £35 (approximately US$70) in 2005 to £99 (approximately US$197) in 2007. Many schools reported that the visa changes introduced last year have affected the nationality mix in their classrooms. Students applying for visas to study in the UK must now also submit biometric data along with their application, which requires a personal visit to an embassy in their home country.

Quality One of the major concerns in choosing a language travel destination and a specific school is, of course, quality. In some countries, the issue of quality is now also being linked to visas, as only approved schools will enable students to obtain a visa. The quality issue is also driving the growth and consolidation of language travel associations, such as ALTO. Association membership is not only about ensuring standards, but it also provides schools with a way in which to promote their high standards to students and agents around the world.

Expansion and consolidation The growth of the language travel market has helped many companies to expand their operations and in some cases to develop major global brands, such as Kaplan Aspect, Study Group, and Navitas. These companies are ‘increasingly changing the landscape of education provision in terms of nimbleness, financial strength and marketing focus’ (Prince and Thompson 2005). There is also growing consolidation in terms of industry associations. Recently Canadian school associations Capls and CLC merged to form Languages Canada, while in New Zealand, English New Zealand and Appel joined forces.

Government support for language learning Consolidation in the language travel industry helps to raise the industry’s profile and the awareness of governments of the importance of language learning.

For example, in the Language Travel Magazine Status Ireland survey in 2006, Spain took the number-one position in the table of top nationalities from the previous year’s number one, Italy. Many believe this was a direct result of the Spanish Ministry of Education’s scholarship fund for students to learn English, French, and German in the European Union (EU). For sum-mer 2007, there were reported to be 3,350 grants of €1,600 (US$2,247) available.


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Diversification The growth of language travel providers has also enabled them to diversify their product range into associated areas of youth travel. In particular, previous editions of the Global Directions in Language Travel survey have shown that product diversification is important for most schools. Work experience programmes and adventure travel products have consistently been among the most important areas of diversification.

Demographic change Aging populations in the developed world have boosted long-term travel amongst older people, which in turn has been linked to a desire to engage in an active process of lifelong learning. More and more adults are taking career breaks or sabbaticals, some of which are being used to learn languages. In some cases, language learning may also be combined with a period of volunteering abroad (TRAM Research 2008). This may create a new market of older students for language schools in many parts of the world.

THE 2008

GLOBAL DIRECTIONS

IN LANGUAGE TRAVEL

SURVEY


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THE 2008 GLOBAL DIRECTIONS IN LANGUAGE TRAVEL SURVEY

In order to provide a consistent benchmark for trends and developments in the language travel industry, ALTO conducted a fifth edition of its Global Directions in Language Travel survey in 2008.

As a first step, a review of the international language travel market was undertaken to identify the total number of organisations active in this market. This review indicated that there are over 3,000 organisations who are members of the various professional bodies in the sector. Although there may be an element of double counting in these figures through organisations belonging to more than one association, it is also likely that there is some under-estimation due to some organisations not being affiliated to any of these associations. However, these figures do give a general indication of the distribution of language travel operations globally.

Regional distribution of language travel association membersNumber %

Africa 7 0.2Asia 265 8.6Australasia 858 27.8Europe 1,051 34.1North America 804 26.1South America 96 3.1Total 3,081 100

It is clear that Europe, Australasia, and North America dominate the market, with almost 90% of organisations located in these regions.

The 2008 survey was circulated to 165 ALTO members and 431 members of other regional language and educational travel associations.

Survey responses by organisation

Organisation Location Total members Responses %

ALTO: Association of Lan-guage Travel Organisations International 165 51 31

ASILS: Associazione Scuole di Italiano come

Lingua SecondaEurope (Italy) 39 7 18

BETA: British Educational Travel Association

Europe (UK) 25 4 16

CIEL: Council of Inter-national Education and

Language Travel Asia (Japan) 31 6 19

ELTASA: English Language Travel Association of

South Africa

Africa (S. Africa) 8 4 50

FELTOM: Federation of English Language Teaching

Organisations MaltaEurope (Malta) 17 9 53

IALC: International Associa-tion of Language Centres

International 88 21 24

Languages Canada North America (Canada) 150 19 13

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NYESA: New York English Schools

AssociationN. America (US) 13 3 23

TANDEM International e.V.International 30 13 43

UED: Association of International Educational

Counsellors

Europe / Asia (Turkey) 30 9 30

Total 596 146 24

The response rate of 24% is fairly good for this type of email-solicited survey, and the total number of responses is over three times that for the 2007 Global Directions survey.

Many of the questions were aimed at either agents or schools because of the inherent differences between the two types of organisations. Distinctions are made in thelanguage travel industry between senders and receivers, buyers and sellers, and agents andproviders. However, for the sake of clarity the present report will refer to the two types ofbusinesses as either agents or schools. Around 3% of respondents are engaged in business both as a school and agency at the same time.

Profile of Language Travel Organisations

Geographic distribution The geographic distribution of survey respondents is clearly dependent on the location of members of the different organisations participating. Although 29 countries are represented in the survey, the bulk of members in the participating associations are based in Europe and North America.

Location by world region

Region Number %Africa 6 4Asia 7 5Australasia 4 3Europe 83 60North America 33 24South America 5 4

146 100

It is clear that Europe is heavily over-represented (62% of respondents against 34% of actual language association members), while other regions are largely under-represented relative to the actual distribution of language travel organisations.


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Association membership Not surprisingly the membership of language travel associations indicated by Global Directions survey respondents was largely determined by the organisations approached to participate in the survey. ALTO was therefore the most frequently represented organisation, closely followed by WYSE Travel Confederation. There were also a number of associations not directly ap-proached for the survey whose members are relatively well represented, most notably English UK and FEDELE.

Association membership of survey respondents

ALTO: Association of Language Travel Organisations 51

WYSE TRAVEL CONFEDERATION 43

NAFSA: Association of International Educators 13

TANDEM International e.V. 11

English UK 8

FEDELE: Federación Española de Asociaciones de Escuelas de Español para Extranjeros

8

Languages Canada 8

UED: Association of International Educational Counsellors 8

FELTOM: Federation of English Language Teaching Organisations Malta

7

BELTA: Brazilian Educational & Language Travel Association 6

ELTASA: English Language Travel Association of South Africa 6

ASILS: Associazione Scuole di Italiano come Lingua Seconda 5

Quality English 5

MEI ~ RELSA: Marketing English in Ireland ~ Recognised English Language Schools Association

4

New York English Schools Association 4

ASEPROCE: Asociacion Española de Promotores de Cursos en el Extranjero

3

BETA: British Educational Travel Association 3

JAOS: Japan Association of Overseas Studies 2

CIEL: Council of International Education and Language Travel, Japan 1

English Australia 1

English New Zealand 1

IALC: International Association of Language Centres 1

My association is not listed. 21

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Organisation type The vast majority of the responding organisations were language schools (68%). A quarter of the sample consisted of agents and the remaining 7%, associations and suppliers. The distribution of respondents by activity is not that much different from the 2007 sample, which had 74% language schools and 34% agents (but with a much higher proportion of combined schools and agents at 13%).

Organisation type

Number %

Schools 101 68

Agents 36 25

Association 7 5

Supplier 3 2

Total 147* 100

* Includes double responses from combined school/agent organisations

The 101 language school respondents were usually individual schools (68%), but around a third operate more than one school. In total, the number of language schools covered by the survey is 239. This is a significant increase on the 2007 survey, which only covered 116 schools.

Size of Business

The schools participating in the survey had a total of 330,000 students enrolled in 2007, a vast increase on the previous survey (40,000). This underlines the increased representa-tive sample of the expanded Global Directions survey. If we compare the number of students represented in the survey with the Language Travel Magazine estimates of the global English language market, then our sample would represent about a quarter of the global student total. However, as the Language Travel Magazine survey does not include students of other languages, this figure is likely to be an overestimate.

The reporting schools had an average of just under 1,500 students in 2007, which contin-ues the historic trend of declining average size of operation. The agents reported a total of 77,000 outbound students, again a significant increase compared with 2006 (35,000). However, these results may also be related to the much greater scope of the survey in 2007.


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Average number of students by organisation type and year

3000

2500

2000

1500

1000

500

0

Schools

Agents

2004 2005 2006 2007

Num

ber

of s

tude

nts

Year

The average number of students per organisation shows a clear trend over time, with the number of students per school falling consistently between 2004 and 2007. Over the same period, agents have increased their volume of business.

Average number of students received per school in 2007

RegionMean

number of students

Africa 1,111Asia 410Australasia 174Europe 1,681North America 1,091South America 577Total 1,399

There were significant variations in student numbers by region. The largest schools tended to be found in Europe, North America, and Africa, while schools in Asia, Australasia, and South America had significantly fewer students. Average number of students sent by agents in 2007

RegionMean

number of students

Asia 1,050Australasia 1,000Europe 3,473North America 60South America 2,075Total 2,653

For agents, there were also very large variations, with European organisations sending much larger numbers of students on average. The figures for North America should be treated with caution, as the agent sample is very small.

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Staff Both the language schools and agents represented in the survey tend to be fairly small organisations, with over a third having 10 or fewer staff. In general, agents tend to be larger, with almost 13% having more than 100 full-time staff.

Full-time staff employed per organisation

45

40

35

30

25

20

15

10

5

0

Schools

Agents

0 to 10 11 to 25 26 to 50 51 to 100 Over 100

%

Number of staff

A comparison with the previous Global Directions surveys indicates that the 2008 respond-ent organisations tended to be smaller. This may be because the ALTO membership tends to be comprised of larger organisations, and therefore the expanded survey has included many smaller organisations for the first time.

There is relatively little difference in staff numbers by location.

Full-time staff employed by region

45

40

35

30

25

20

15

10

5

0

Europe

North America

0 to 10 11 to 25 26 to 50 51 to 100 Over 100

%

Number of staff


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Turnover As information on financial performance tends to be sensitive, respondents in the Global Directions survey are not asked about the volume of turnover, but rather the share of turnover contributed by language travel products.

Percentage turnover derived from language travel products

80

70

60

50

40

30

20

10

0

Schools Agents

% t

urno

ver

Organisation type

Around 70% of turnover came from language travel products and services in 2007. This is the same level as in 2006. Schools (74%) derived more of their turnover from language travel products than agents (61%).

There was relatively little variation in turnover sources by region, except that schools in North America tended to derive less of their income from this source (58% on average). There is no difference in language travel turnover by size of operation.

Forecasted Growth Rates

Language travel providers were asked to forecast the growth rates that were expected from the market as a whole. Taken over the whole three-year period from 2008 to 2010, the aver-age expected industry growth rate is almost 10% per annum, considerably greater than the forecast for the travel industry as a whole (about 5% per annum according to the UNWTO). The industry expects growth rates to rise from an average of around 8% in 2008 to over 12% in 2010. In general, agents tended to be more optimistic than schools.

Forecasted three-year market growth rates

14

13

12

11

10

9

8

7

6

5

4

Schools

Agents

Industry forecast

2008 2009 2010

% g

row

th

Year

15


The growth forecasts, however, are lower than reported in 2007. Last year, schools expected 15% growth in student numbers in 2007 compared with 2006, and agents expected 25% growth. This may indicate that suppliers expect a short-term downturn in student numbers as a result of the credit crunch, but that they expect higher growth rates to resume in the near future.

Forecast growth by region Forecast growth rates varied by region, with respondents in North America being more optimis-tic about market growth than their counterparts in Europe.

18

16

14

12

10

8

6

4

2

0

Europe

North America

2008 2009 2010

% g

row

th

Year

There were no differences in forecast growth rates by school size.

Market share

Language travel organisations were asked to give information on their local market share for the first time in 2008. For schools, their share of the local market averages around 19%, which indicates that the respondents may be inclined to be the larger operators in their re-gion. For agents, the market share is 11%.

Average market share for agents and schools

20

18

16

14

12

10

8

6

4

2

0

Agents Schools

%

Organisation type


16

A comparison of the market share claimed by respondents in different countries indicates that they tend to overestimate their share. For the UK, for example, the seven responding schools estimated their combined market share to be 216% of the local market, while in Canada the 14 responding schools claimed to account for a combined total of 360% of the local market. Only in New Zealand did schools underestimate their market share. This may be because of the recent fall in student numbers there.

Comparison of claimed and actual market share for selected countries

CountryNumber of

reported students

Total market share claimed

Actual market share

Canada 23,689 360% 13.2%

Ireland 15,264 66% 11.7%

Malta 19,940 56% 32%

New Zealand 7,071 5% 19%

UK 174,716 216% 30%

The challenge with this question may be the interpretation of the term ‘local market’. For some schools, this may mean their city or region, whereas for others it may mean the whole country. This may indicate why the estimates in Malta, a very small country, were more ac-curate than elsewhere. Student Profile

Age group The largest group of language travel students tend to be aged between 18 and 24. In con-trast to previous Global Directions surveys, there seem to be differences in the age profiles of schools and agents, with the former in particular dealing with older students. This may be because schools can attract independent, older travellers, whereas for agents it is easier to recruit younger groups of students. There was very little variation in the age groups of schools by region.

Age profile of inbound and outbound students

30

25

20

15

10

5

0

Schools

Agents

Under 15 15 - 17 18 - 20 21 - 24 25 - 29 30+

% s

tude

nts

Age group

17


Over time, the overall age distribution of students has remained fairly constant, with the 21-24 age group being the largest over the past four years of Global Directions surveys. However, the 2008 figures do indicate a slight growth in students over the age of 30, which may be the first sign of an emerging mature student group.

There was relatively little difference in age profile by school size, except for the over-30 age group, which tended to be found more often in smaller schools (less than 1,000 enrolments).

There were some regional differences in age profile for schools, with North American schools having their students concentrated in the 18-24 age group, while European schools tend to serve a wider age range.

Age profile for schools in Europe and North America

25

20

15

10

5

0

Europe

NorthAmerica

Under 15 15 - 17 18 - 20 21 - 24 25 - 29 30+

% s

tude

nts

Age group

Duration of study The average study duration in 2008 was just under five weeks for inbound students. Agents did not provide enough data on duration of study to calculate these figures for outbound stu-dents, but the indications are that durations are significantly shorter. This is also consistent with the results of previous years.

In 2007, the average study duration was calculated from figures on student numbers and numbers of student weeks. These are not strictly comparable with the previous surveys, where a separate question was asked on the average study duration. The 2008 figures indi-cate that many schools are now providing a large number of shorter courses, with the bulk reporting average study durations of less than four weeks.

Average course duration, reported by schools

45

40

35

30

25

20

15

10

5

0Under

2 weeks2 - 4

weeks1 - 3

months4 - 6

months7 - 12

monthsCourse duration

% r

espo

nden

ts

There was little variation in the average course duration by region or by size of school.


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Popularity of course types For those respondents offering language travel products, the most frequently offered course type was non-degree programmes, followed by college and university preparatory programmes.

Popularity of course types offered

Non-degree seeking programmes

College/university preparatory

High school programmes

Vocational training

Postgraduate courses (other than MBA)

MBA courses

Undergraduate courses

0 10 20 30 40

% respondents

50

This pattern contrasts considerably with the 2007 survey, which showed that high school programmes were the most popular among ALTO members.

There were some regional differences; most notably, North American schools tend to offer a wider range of courses than their European counterparts.

Courses offered in Europe and North America

Non-degree seeking programmes

College/university preparatory

High school programmes

Vocational training

Postgraduate courses (other than MBA)

MBA courses

Undergraduate courses

0 20 40 60 80% respondents

100North America Europe

In general, school size had relatively little impact on the types of courses offered. The only exception was for high school programmes, which were predominantly provided by largersuppliers.

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Percentage of schools that offer high school programmes, by school size

High school programmes offeredNumber of students by category

Under 1,000 1,000 to 2,999 3,000 + Total

Yes 30.8% 15.4% 53.8% 100.0%

No 49.2% 34.4% 16.4% 100.0%

Total 45.9% 31.1% 23.0% 100.0%

Student Mobility

Source countries The top five source countries accounted for over 90% of total business for both schools and agents. In most cases, the biggest single market accounted for over 50% of total business, and schools tended to be even more dependent on individual source markets.

Distribution of business by top source countries

70

60

50

40

30

20

10

0

Schools

Agents

1st source country

2nd source country

3rd source country

4th source country

5th source country

% o

f to

tal b

usin

ess

In terms of the major source countries for language students, there were some major chang-es in the rankings in 2008, but it should be recognised that these may related to some extent to the broader survey base this year. In particular, Germany showed a strong rise from 6th to 1st place and Italy strengthened from 7th to 4th place. The US also rose from 9th in 2007 to 5th in 2008. In contrast, Japan fell from 1st rank in 2007 to 6th in 2008, and Brazil dropped from 3rd to 8th place.


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Ranking of major source countries, 2005-2008

Rank 2005 2006 2007 2008

1 Japan Japan Japan Germany

2 Germany Spain South Korea Spain

3 United States Germany Spain South Korea

4 Spain Brazil Brazil Italy

5 Brazil Italy Switzerland United States

6 France South Korea Germany Japan

7 Italy Switzerland Italy Switzerland

8 South Korea France United Kingdom Brazil

9 Switzerland Mexico United States United Kingdom

10 United Kingdom United States Mexico France

Some of the movements in the 2008 source countries can be corroborated against other data sources. For example, the ELICOS study reported that in Australia, ‘Japan and South Korea were again the two major source nationalities in 2006, however South Korea has overtaken Japan as the most important source of ELICOS enrolments.’ This indicates the growing impor-tance of South Korea as a source market.

Ranking of main source countries in percentage, 2008

Germany

Spain

Korea

Italy

USA

Japan

Switzerland

Brazil

UK

France

0 10 20 30 40

% Respondents

50 60 70

Destination countries For outbound students, the United Kingdom continues to maintain top ranking in terms of the number of organisations listing it among their top five destination countries. The United States maintained the second place it gained in 2007, while Canada improved its position to third. The countries ranked in the top ten did not change in 2008, although some countries rose or fell within this group.

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Ranking of main destinations, 2005-2008

Rank 2005 2006 2007 2008

1 United Kingdom United Kingdom United Kingdom United Kingdom

2 Spain Spain United States United States

3 France United States Spain Canada

4 United States Canada Canada Australia

5 Canada Australia Australia Spain

6 Australia France France France

7 Ireland Malta Malta Germany

8 Malta New Zealand Ireland Malta

9 Italy Italy Germany Italy

10 Germany Ireland Italy Ireland

Future destinations In terms of those destinations that respondents think will grow in future, the US and China were cited most often. The overall pattern of future expectations suggests little change in the distribution of student destinations, because the United States and the United Kingdom are already important destinations, and they are seen by many as becoming more important in future. The major change seems to be the rise of China, which is already becoming more important as a source market, but is also now seen as a potential destination for the future. Destinations most likely to grow in future

Country Number of mentions

USA 15

China 12

UK 7

Spain 6

Russia 5

Canada 4

Korea 4

Australia 3

Brazil 3

Germany 3

Argentina 2

Malta 2

Mexico 2

New Zealand 2

Saudi Arabia 2

South Africa 2


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Marketing & Business

Recruitment sources for schools

The most frequent source of students for schools was international agents, who were used by over half the schools. However, this indicates a decline relative to previous years, when agents were used by closer to 60% of schools. Internet was also a very popular recruitment channel, although the rapid growth noted in 2007 has not been sustained in 2008. The over-all pattern matches that in the Language Travel Magazine survey in 2006, which indicated that agents were the most important source of students in nine major language travel destinations.

Sources of recruitment for schools

International agents

Direct via internet

Walk-ins/Local bookings

Domestic agents

Recruitment events

0 10 20 30 40% Respondents

50 60

Sou

rce

The likelihood of using agents increases with school size.

Proportion of schools using agents by school size, in percentage

School size, by number of students

Use of interna-tional agents, in

percentage

Under 1,000 44

1,000 to 2,999 59

3,000 + 68

Total 54

Recruitment sources for agents For agents, referrals are used by over a quarter of respondents, about the same level as in 2007. Internet bookings, on the other hand, declined from 31% of respondents in 2007 to 23% in 2008 (although this may reflect changes in the sample of agents in 2008).

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Sources of recruitment for agents

Referrals

Internet bookings

Repeat customers

Recruitment events

Other

Walk-ins

0 5 10 15 20

% Respondents

25 30

Sou

rce

Diversification of products and services

Diversification through the addition of new products and services has been an important trend noted in previous editions of the Global Directions survey. In 2008, the areas that were expected to become more popular with students were online courses and business language courses. Long-term courses were not seen as a major growth area by most respondents, underlining the trend towards shorter course durations in many areas.

Forecasted course growth in the next three years, in percentage

Academic preparation courses

Business language courses

Long-term courses

Online courses

Exam preparation

Intensive language programmes

Less popular 7.5 7.3 32.9 17.3 6.3 9.9

Same 51.3 40.2 50.0 29.3 53.8 59.3

More popular 41.3 52.4 17.1 53.3 40.0 30.9

The trend towards product diversification was evident when respondents were asked their opinion on the products and services that will become more popular in the language travel industry in the next three years. Language industry providers were predicted to be moving into work experience, career development, and adventure activities. In contrast, the development of language training through computer-aided learning was seen as relatively unimportant.


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Forecasted product growth in the next three years

Work Experience Programmes

Career Development Courses

Adventure Activities

Volunteer/Community Service Programmes

Cultural Activities

Vocational Programmes

High School Programmes

CALL (Computer Aided Language Learning)

Homestay Programmes

Airline Tickets

Insurance Services

Au Pair Programmes

0 10 20 30 40

% agree

50 60

There were some regional differences in the areas of expected growth. For example, North American respondents were much more likely to identify homestays as a growth area (24%), compared with European respondents.

ALTO members were also likely to emphasise some products more than other respondents. The areas where ALTO members were particularly likely to see growth were in adventure travel, career development, volunteer programmes, and work experience.

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Acknowledgements

ALTO would like to thank the following individuals and organisations for their input and contributions:

ALTO Members:•

Academic Adventures in AmericaAccademia Europea di FirenzeACCESS International English Language CentreAnglophiles AcademicArdmore Group, TheAssociation of International Education Counselors TurkeyAssociazione Lingue e Culture EuropeeAtlantic Language GalwayAustralian Council for Private Education & TrainingBerlitz Languages, Inc.Blueberry Språkresebyrå ABBrazilian Educational & Language Travel AssociationBridge Linguatec, Inc.Britannia Learning & Leisure Ltd (Kingswood)Cactus Worldwide LtdCAMPS InternationalCanadian International Student Servicescarpe diem / TravelWorksCentral de Intercâmbio Viagens LtdaCentral do EstudanteCentre of English StudiesCentro de Lenguas e Intercambio CulturalCentro InternazionaleChina Greenland Travel & Culture Co. LtdClubclass LtdCOINED InternationalColegio MaravillasCork English CollegeCork Language Centre InternationalCosmo EducaciónCouncil of International Education & Language TravelCultural Homestay in Europe LtdCultural Homestay InternationalDI.L.IT International Housedid deutsch-institutDisney Youth Group ProgramsDomar Travel EducationDon Quijote - Enforex Spanish in the Spanish WorldDr Steinfels Sprachreisen GmbHDublin School of EnglishEC GroupECELAEDM EducationEducaCentre Russian St. Petersburg ToursEducamos Viajando LtdaEducation Centre Durbe EduHouse Inc.EduYork Educational ServicesEF International Language SchoolsEkaterinburg Center “Education Abroad”ELG Europäisch-Lateinamerikanische GesellschaftELS Language Centers


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Embassy CESEmerald Cultural InstituteEnglish 2000 School of EnglishEnglish AustraliaEnglish Language & Travel Association of South AfricaEnglish UKESL - Ecole Suisse de LanguesEstudio SampereEurocentresEurocentres- Foundation for Language and Educational CentresEuroculture Ltd (ICS)European School of EnglishEuro-Schulen-OrganisationExperimento de Convivência Internacional do BrasilFBItalyFDSVFederal Vacation Co.Foreign Study Travel ServiceGlobal Village English CentresGlobal Visions Education LtdGLS SprachenzentrumGood Hope StudiesHigh Schools InternationalHome Language InternationalHong Kong Student TravelHorizonteHorner School of English LtdI.M.A.C. Instituto Mexico Americano de CulturaICEFILS Italian Language SchoolINFORT Instituto para la FormacionInstitut ParisienInstitute of English Language Studies Limited (IELS)International Association of Language CentresInternational Centre “Education & Business”International House Berlin PROLOGInternational Language Academy of CanadaInternational Language Schools of CanadaInternational QuestInterway S.A.Intrax Cultural ExchangeInTuition Languages LtdIP International Project GmbHIrish Education Partners LtdISIS Education & Travel GroupItalian in ItalyiTTTi VancouverJenny Braden Holidays LtdJoint Stock Company “Spectrum Travel”Juventud Y CulturaKaplan AspectKaravan Travel & TradeKing George International CollegeKings Group/Prime EducationKingsbrook Language ServicesLa Ligue de L’enseignementLAL GroupLanguage Courses Abroad LtdLanguage Network LTDLanguage School Worldwide S.L.

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Languages Canada AssociationLangues Sans Frontières (LSF)Linguatime School of EnglishLinguaviva Educational GroupLink School of EnglishLSC Language Studies CanadaMagisterMandarin HouseMedia Touristik AGMM Oxford Study ServicesMontreal YMCA International Language SchoolMundo Joven Travel ShopNational Student Travel FoundationNew York Language CenterNew Zealand Management Academies Ltd. / Fern English AcademyOffice National de Garantie des Sejours et Stages LinguistiquesOmnicom School of LanguagesOpen World Education LtdPLI - Pacific Language Institute, Inc.Project InternationalRennert BilingualRosa dels Vents trading as RV Youth HostelsScuola Leonardo da VinciScuola Lorenzo De’ Medici 2Sehdev Travel & Educational ServicesSéjours Internationaux Linguistiques et CulturelsSHE Travelling Consultants - Spanish HeritageSoléxico Language and Cultural CentersSpanish Abroad, Inc.Spanish Study Holidays LtdSprachcaffe - Languages PlusSpring International Language CenterSTA Travel GroupSTB Student Travel Bureau BrazilSTS Student Travel SchoolsStudent Agency LtdStudy Group InternationalStudyGlobalStudyTravel BVSydney English Language CentreTamwood International College LtdTANDEM International e.V.Thai International Education Consultants AssociationThe Language Academy, Inc.Travel ActiveUAB Idiomes BarcelonaUhak.comUnited Travel Study Service LtdUNSW Global Pty LimitedVancouver English CentreVIAJES COLONViajes Sanabria SA / LinguaturVienna Group T/A Umi Hotels Ltd & Access ApartmentsVillage Camps SAWESTEDU International Education ConsultancyWish International, Inc.World Education ProgramWorld Study BrazilYA Language School


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The following national associations who participated in the survey: International As-•sociation of Language Schools (IALC); Associazione Scuole di Italiano come Lingua Seconda (ASILS); British Educational Travel Association (BETA); Council of Internation-al Education and Language Travel, Japan (CIEL); English Language Travel Association of South Africa (ELTASA); Federation of English Language Teaching Organisations – Malta (FELTOM); Languages Canada; New York English Schools Association (NYESA); TANDEM; and the Association of International Education Counselors Turkey (UED).

ALTO Executive Board:•

Chair Mr Mauro Biondi, Emerald Cultural Institute, Ireland Treasurer Ms Santuza Bicalho, STB Brazil, Brazil Board Member Mr Jose Antonio Flores, Kings Group, UK Board Member Mr Kenichi Ikeno, UTS, Japan

WYSE Travel Confederation team, with special thanks to: David Jones, Director •General; Anne-Marie Dingemans, General Manager, Association Services; Jane Mack, Graphic Designer; Andrea Toifl, Intern; and Stephanie Manning, ALTO Association Manager and project manager for this report.

Previous editions of Global Directions in Language Travel are available online athttp://www.altonet.org.

Sources

CAPLS Canada (2007) Student Profile Survey:http://www.capls.com/en/industry/_docs/capls_student_profile_survey_report.pdf

English Australia (2006) Survey of Major Regional Markets for ELICOS Institutions: http://www.englishaustralia.com.au/index.cgi?E=hcatfuncs&efile=member_library&PT=sl&X=getdoc&Lev1=stats&Lev2=env2006

Indecon International Economic Consultants (2007) International competitor analysis and benchmarking for the EFL sector in Ireland:http://www.failteireland.ie/getdoc/21d48767-aab7-4544-ae89-dad0adc176fc/Indecon-Re-port-on-EFL-Sector--November-200707

Institute of International Education (2007) Open Doors Report:http://opendoors.iienetwork.org/

Prince, S. and Thompson, J.W. (2005) International Education: Facing the FutureThe 5th Washington International Education Conference

Secretaría General de Turismo, Spain (2004) El turismo idiomático en España. Madrid.

TRAM Research (2008) Volunteer Tourism. A global analysis. Arnhem: ATLAS.

Verbik, L. and Lasanowski, V. (2007) International Student Mobility: Patterns and Trends. London: The Observatory on borderless higher education.

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ALTO is a founding sector association of WYSE TRAVEL CONFEDERATION

Keizersgracht 1741016 DW Amsterdam

The Netherlands

T: + 31 20 421 2800F: + 31 20 421 2810

E: [email protected]

ALTO's Global Directions in Language Travel 2009

Documents

global language travel

language travel surveys

international travel

global youth travel

number of language schools

title altos global directions

survey respondents

market intelligence