ALTO's Global Directions in Language Travel 2009 by Stephanie Manning

Global Directions in Language Travel 2008

Research Programme WYSE Travel Confederation and ALTO are committed to understanding 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 associations for their collaboration on the 2008 Global Directions in Language Travel:

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.

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 estimated 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 quarters 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 destinations 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.

Global Directions in Language Travel 2008

INTRODUCTION About ALTO ALTO is an association operating under the umbrella of the World Youth Student & Educational (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 considers 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 Destinations’ 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. Similar figures were also compiled for Fáilte Ireland by Indecon International Economic Consultants (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 student 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.

Global Directions in Language Travel 2008

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

1998

1999

2000

2001

566,000

563,000

549,000

487,000

2002

2003 -

2004

2005

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

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

Total

51,456

35,749

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

China

S. Korea

Italy

Germany

Japan

S. Korea

Japan

Spain / Switzerland

Italy

S. Korea

Switzerland

Japan

Mexico

France

China

Brazil

Taiwan

Switzerland

Germany

Austria

S. Korea

Brazil

Thailand

Brazil

Austria

Russia

Taiwan / 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 destination 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 Ireland USA Canada New Zealand Australia Malta

€ 1212 804 802 681 672 647 540

Source: Language Travel Magazine Global Comparison

Market growth is also evident from the studies made by individual language travel destinations 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 operation 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 estiated 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%).

Global Directions in Language Travel 2008

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 example, 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 million 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) enrolment 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 Canada UK Australia USA Malta

74.7% 65% 60% 56% 21% 17%

Source: Language Travel Magazine

The fact that language students often stay in local communities means that they spend money 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 increases 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.

Global Directions in Language Travel 2008

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 countries 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 summer 2007, there were reported to be 3,350 grants of €1,600 (US$2,247) available.

Global Directions in Language Travel 2008

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

Global Directions in Language Travel 2008

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 members Africa Asia Australasia Europe North America South America Total

Number 7 265 858 1,051 804 96 3,081

% 0.2 8.6 27.8 34.1 26.1 3.1 100

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 Language Travel Organisations

International

165

ASILS: Associazione Scuole di Italiano come Lingua Seconda

Europe (Italy)

BETA: British Educational Travel Association

Europe (UK)

CIEL: Council of International Education and Language Travel

Asia (Japan)

ELTASA: English Language Travel Association of South Africa

Africa (S. Africa)

FELTOM: Federation of English Language Teaching Organisations Malta

Europe (Malta)

IALC: International Association of Language Centres

International

North America (Canada)

150

Languages Canada

Global Directions in Language Travel 2008

NYESA: New York English Schools Association TANDEM International e.V. UED: Association of International Educational Counsellors

N. America (US)

International

Europe / Asia (Turkey)

596

146

Total

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 the language travel industry between senders and receivers, buyers and sellers, and agents and providers. However, for the sake of clarity the present report will refer to the two types of businesses 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 Africa Asia Australasia Europe North America South America

Number 6 7 4 83 33 5 146

% 4 5 3 60 24 4 100

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.

Global Directions in Language Travel 2008

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 approached 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

WYSE TRAVEL CONFEDERATION

NAFSA: Association of International Educators

TANDEM International e.V.

English UK

FEDELE: Federaci坦n Espa単ola de Asociaciones de Escuelas de Espa単ol para Extranjeros

Languages Canada

UED: Association of International Educational Counsellors

FELTOM: Federation of English Language Teaching Organisations Malta

BELTA: Brazilian Educational & Language Travel Association

ELTASA: English Language Travel Association of South Africa

ASILS: Associazione Scuole di Italiano come Lingua Seconda

Quality English

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

New York English Schools Association

ASEPROCE: Asociacion Espa単ola de Promotores de Cursos en el Extranjero

BETA: British Educational Travel Association

JAOS: Japan Association of Overseas Studies

CIEL: Council of International Education and Language Travel, Japan

English Australia

English New Zealand

IALC: International Association of Language Centres

My association is not listed.

Global Directions in Language Travel 2008

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

Agents

Association

Supplier

147*

100

Total

* 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 representative 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 continues 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.

Global Directions in Language Travel 2008

Average number of students by organisation type and year

Number of students

3000 2500 2000

Schools Agents

1500 1000 500 0

2004

2005

2006

2007

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 Region Africa Asia Australasia Europe North America South America Total

Mean number of students 1,111 410 174 1,681 1,091 577 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 Region Asia Australasia Europe North America South America Total

Mean number of students 1,050 1,000 3,473 60 2,075 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.

Global Directions in Language Travel 2008

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

Schools Agents

25 20 15 10 5 0

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 respondent 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

Europe North America

25 20 15 10 5 0

0 to 10

11 to 25

26 to 50

51 to 100

Number of staff

Over 100

Global Directions in Language Travel 2008

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

% turnover

60 50 40 30 20 10 0

Agents

Schools 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 average 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

% growth

Schools Agents Industry forecast

10 9 8 7 6 5 4

2008

2009

2010

Year

Global Directions in Language Travel 2008

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 optimistic about market growth than their counterparts in Europe. 18 16

% growth

14 12

Europe North America

10 8 6 4 2 0

2008

2009

2010

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 region. 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

Organisation type

Schools

Global Directions in Language Travel 2008

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 Country

Number 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%

7,071

19%

174,716

216%

30%

New Zealand UK

The challenge with this question may be the interpretation of the term â&#x20AC;&#x2DC;local marketâ&#x20AC;&#x2122;. 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 accurate than elsewhere.

Student Profile Age group The largest group of language travel students tend to be aged between 18 and 24. In contrast 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

% students

25 20

Schools Agents

15 10 5 0

Under 15 15 - 17

18 - 20 21 - 24 Age group

25 - 29

30+

Global Directions in Language Travel 2008

Over time, the overall age distribution of students has remained fairly constant, with the 2124 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

% students

Europe North America

15 10 5 0

Under 15 15 - 17

18 - 20 21 - 24 Age group

25 - 29

30+

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 students, 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 indicate 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

% respondents

35 30 25 20 15 10 5 0

Under 2 weeks

2-4 weeks

1-3 4-6 months months Course duration

7 - 12 months

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

Global Directions in Language Travel 2008

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

% respondents 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 North America

Europe

40 60 % respondents

100

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 larger suppliers.

Global Directions in Language Travel 2008

Percentage of schools that offer high school programmes, by school size Number of students by category High school programmes offered Under 1,000

1,000 to 2,999

3,000 +

Total

Yes

30.8%

15.4%

53.8%

100.0%

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

% of total business

70 60 50 40

Schools Agents

30 20 10 0

1st source 2nd source 3rd source 4th source 5th source country country country country country

In terms of the major source countries for language students, there were some major changes 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.

Global Directions in Language Travel 2008

Ranking of major source countries, 2005-2008 Rank

2005

2006

2007

2008

Japan

Germany

Spain

South Korea

Spain

United States

Germany

Spain

South Korea

Spain

Brazil

Italy

Brazil

Italy

Switzerland

United States

France

South Korea

Germany

Japan

Italy

Switzerland

Italy

Switzerland

South Korea

France

United Kingdom

Brazil

Switzerland

Mexico

United States

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, â&#x20AC;&#x2DC;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.â&#x20AC;&#x2122; This indicates the growing importance 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

30 40 % Respondents

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.

Global Directions in Language Travel 2008

Ranking of main destinations, 2005-2008 Rank

2005

2006

2007

2008

United Kingdom

Spain

United States

France

United States

Spain

Canada

United States

Canada

Australia

Canada

Australia

Spain

Australia

France

Ireland

Malta

Germany

Malta

New Zealand

Ireland

Malta

Italy

Germany

Italy

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

China

Spain

Russia

Canada

Korea

Australia

Brazil

Germany

Argentina

Malta

Mexico

New Zealand

Saudi Arabia

South Africa

Global Directions in Language Travel 2008

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 overall 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

Source

Direct via internet Walk-ins/Local bookings Domestic agents Recruitment events

40 20 30 % Respondents

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 international agents, in percentage

Under 1,000

1,000 to 2,999

3,000 +

Total

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).

Global Directions in Language Travel 2008

Sources of recruitment for agents Referrals

Source

Internet bookings Repeat customers Recruitment events Other Walk-ins

20 10 15 % Respondents

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.

Global Directions in Language Travel 2008

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

% agree 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.

Global Directions in Language Travel 2008

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

•

ALTO Members:

Academic Adventures in America Accademia Europea di Firenze ACCESS International English Language Centre Anglophiles Academic Ardmore Group, The Association of International Education Counselors Turkey Associazione Lingue e Culture Europee Atlantic Language Galway Australian Council for Private Education & Training Berlitz Languages, Inc. Blueberry Språkresebyrå AB Brazilian Educational & Language Travel Association Bridge Linguatec, Inc. Britannia Learning & Leisure Ltd (Kingswood) Cactus Worldwide Ltd CAMPS International Canadian International Student Services carpe diem / TravelWorks Central de Intercâmbio Viagens Ltda Central do Estudante Centre of English Studies Centro de Lenguas e Intercambio Cultural Centro Internazionale China Greenland Travel & Culture Co. Ltd Clubclass Ltd COINED International Colegio Maravillas Cork English College Cork Language Centre International Cosmo Educación Council of International Education & Language Travel Cultural Homestay in Europe Ltd Cultural Homestay International DI.L.IT International House did deutsch-institut Disney Youth Group Programs Domar Travel Education Don Quijote - Enforex Spanish in the Spanish World Dr Steinfels Sprachreisen GmbH Dublin School of English EC Group ECELA EDM Education EducaCentre Russian St. Petersburg Tours Educamos Viajando Ltda Education Centre Durbe EduHouse Inc. EduYork Educational Services EF International Language Schools Ekaterinburg Center “Education Abroad” ELG Europäisch-Lateinamerikanische Gesellschaft ELS Language Centers

Global Directions in Language Travel 2008

Embassy CES Emerald Cultural Institute English 2000 School of English English Australia English Language & Travel Association of South Africa English UK ESL - Ecole Suisse de Langues Estudio Sampere Eurocentres Eurocentres- Foundation for Language and Educational Centres Euroculture Ltd (ICS) European School of English Euro-Schulen-Organisation Experimento de Convivência Internacional do Brasil FBItaly FDSV Federal Vacation Co. Foreign Study Travel Service Global Village English Centres Global Visions Education Ltd GLS Sprachenzentrum Good Hope Studies High Schools International Home Language International Hong Kong Student Travel Horizonte Horner School of English Ltd I.M.A.C. Instituto Mexico Americano de Cultura ICEF ILS Italian Language School INFORT Instituto para la Formacion Institut Parisien Institute of English Language Studies Limited (IELS) International Association of Language Centres International Centre “Education & Business” International House Berlin PROLOG International Language Academy of Canada International Language Schools of Canada International Quest Interway S.A. Intrax Cultural Exchange InTuition Languages Ltd IP International Project GmbH Irish Education Partners Ltd ISIS Education & Travel Group Italian in Italy iTTTi Vancouver Jenny Braden Holidays Ltd Joint Stock Company “Spectrum Travel” Juventud Y Cultura Kaplan Aspect Karavan Travel & Trade King George International College Kings Group/Prime Education Kingsbrook Language Services La Ligue de L’enseignement LAL Group Language Courses Abroad Ltd Language Network LTD Language School Worldwide S.L.

Global Directions in Language Travel 2008

Languages Canada Association Langues Sans Frontières (LSF) Linguatime School of English Linguaviva Educational Group Link School of English LSC Language Studies Canada Magister Mandarin House Media Touristik AG MM Oxford Study Services Montreal YMCA International Language School Mundo Joven Travel Shop National Student Travel Foundation New York Language Center New Zealand Management Academies Ltd. / Fern English Academy Office National de Garantie des Sejours et Stages Linguistiques Omnicom School of Languages Open World Education Ltd PLI - Pacific Language Institute, Inc. Project International Rennert Bilingual Rosa dels Vents trading as RV Youth Hostels Scuola Leonardo da Vinci Scuola Lorenzo De’ Medici 2 Sehdev Travel & Educational Services Séjours Internationaux Linguistiques et Culturels SHE Travelling Consultants - Spanish Heritage Soléxico Language and Cultural Centers Spanish Abroad, Inc. Spanish Study Holidays Ltd Sprachcaffe - Languages Plus Spring International Language Center STA Travel Group STB Student Travel Bureau Brazil STS Student Travel Schools Student Agency Ltd Study Group International StudyGlobal StudyTravel BV Sydney English Language Centre Tamwood International College Ltd TANDEM International e.V. Thai International Education Consultants Association The Language Academy, Inc. Travel Active UAB Idiomes Barcelona Uhak.com United Travel Study Service Ltd UNSW Global Pty Limited Vancouver English Centre VIAJES COLON Viajes Sanabria SA / Linguatur Vienna Group T/A Umi Hotels Ltd & Access Apartments Village Camps SA WESTEDU International Education Consultancy Wish International, Inc. World Education Program World Study Brazil YA Language School

Global Directions in Language Travel 2008

•

The following national associations who participated in the survey: International Association of Language Schools (IALC); Associazione Scuole di Italiano come Lingua Seconda (ASILS); British Educational Travel Association (BETA); Council of International 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 Treasurer Board Member Board Member

•

Mr Mauro Biondi, Emerald Cultural Institute, Ireland Ms Santuza Bicalho, STB Brazil, Brazil Mr Jose Antonio Flores, Kings Group, UK 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 at http://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-Report-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 Future The 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.

Global Directions in Language Travel 2008

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