2017: WHAT TO EXPECT?

MARKET DATA

AND GUIDE FOR SCHOOLS

SAMUEL VETRAK STUDENTMARKETING, CEO

ENGLISH UK MARKETING CONFERENCE FEBRUARY 3, 2017

INTRODUCTION 2 GLOBAL APPROACH

HQ VIENNA

AS AN ESOMAR MEMBER, I COMPLY WITH THE ICC/ESOMAR CODE AND ESOMAR WORLD RESEARCH GUIDELINES.

SAMUEL VETRAK, CEO, STUDENTMARKETING

STUDENTMARKETING IS A UNITED NATIONS WORLD TOURISM ORGANIZATION AFFILIATE MEMBER.

ABOUT US OUR CLIENTS 3

DESTINATIONS ASSOCIATIONS PROVIDERS

PART 1 4

PART 1 MOBILITY TRENDS

5 MARKET OVERVIEW ENGLISH LANGUAGE TRAVEL – DESTINATIONS

Source: StudentMarketing, 2016

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

USA UK AUSTRALIA CANADA IRELAND NEW ZEALAND

MALTA SOUTH AFRICA

2011 2012 2013 2014 2015 STUDENT WEEKS

* 2015 data is not available.

*

6

Source: StudentMarketing, 2016

MARKET OVERVIEW ENGLISH LANGUAGE TRAVEL – TOP SOURCE MARKETS & 2013 V 2015 CHANGE

0

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

12%

2%

25%

5%

15% 1

1%

25%

28%

6%

5%

6%

11%

15%

4%

30%

7%

25%

39%

24%

55%

STUDENT WEEKS INCREASE DECREASE

PART 2 11

PART 2 INDUSTRY TRENDS

2016 YEAR IN REVIEW 8

Source: StudentMarketing, 2016

GROWTH DEVELOPMENT CONSOLIDATION DECLINE MATURITY

HIGH GROWTH

LOW RIVARLY

INCREASING RIVALRY

EXTREME RIVALRY

STRONG BUYERS

MA

RKET

SIZ

E 2016

PRODUCT CHANGES

Demand for English learning abroad is slowing but still growing

While other languages are expected to grow

The purpose of learning a foreign language abroad moves away from

personal reasons (fun, desire to learn the language, travel component), towards

career reasons (current or future studies, employment-related prospects)

More juniors

More packaging

More multilingual customers

14

Source: IALC & StudentMarketing, 2016

M&As AND CLOSURES 15 UK ELT SUPPLY

Source: StudentMarketing, 2016

LANGUAGE CENTRE MERGER/ACQUISITION CLOSURE

VERTICAL INTEGRATION 17

PRICE 18

DISCOUNTS

NET PRICE GROSS PRICE SPECIAL OFFERS

SEASONAL PRICING

DYNAMIC PRICING

BONUSES

REGIONAL PRICING

HEDGING

TACTICAL PRICING COST-BASED PRICING

PROMOTIONAL PRICING

PSYCHOLOGICAL PRICING

MARKET PENETRATION PRICING

13

Source: IALC & StudentMarketing, 2016

COMMISSION

0%

5%

10%

15%

20%

25%

CHINESE ENGLISH FRENCH GERMAN ITALIAN JAPANESE PORTUGUESE RUSSIAN SPANISH

AVERAGE COMMISSION PER LANGUAGE IN %

INNOVATIONS 21

AFFILIATIONS 22 IN TIMES OF MATURITY BUSINESSES - GET CLOSER

PART 3 23

PART 3 2017 OUTLOOK

2017 PREDICTIONS 17

1.  Less price war (re-action)

2.  More strategic solutions (proactive approach)

3.  Exit of smaller players

4.  M&As and portfolios

5.  Packages

MARKETING

FAM Tours (selected agents and redistributors)

Repeated business

Social media marketing

Mobile marketing

Visual component (video)

25

THANK YOU!