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The Future of Adult Language Travel - 2020 and Beyond

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The Future of Adult Language Travel - 2020 and Beyond The Future of Adult Language Travel - 2020 and Beyond INDUSTRY REBOOT GLOBAL OVERVIEW The Future of Adult Language Travel - 2020 and Beyond | PAGE 1 ALTO is a professional association where educational agencies, language schools, Contents universities, national and international associations and industry service providers join together as a global community. We provide a platform for leaders 1. Participating Educational Agents 3 and decision makers in the industry to further develop and grow their businesses through networking, professional development and information exchange. 2. Participating Language Schools 4 3. Main Adult Language Programmes (16+) offered 5 As a uniting body in a time of crisis, ALTO seeks to use its position to facilitate 4. Course Duration – How long do students study? 6 a meaningful conversation about aspects of our business that impact both immediate issues and long-term viability of the industry as a whole. We welcome 5. Impact of COVID 19 and Booking Expectations for Adult Language Travel 7 new members to broaden the discussion. 5.1. Regional Agent Comparison - Covid 19 Impact 8 The Language Travel sector faces major and ongoing disruption due to Covid-19. 6. Expected Post-Covid Language Travel Priorities for students in This disruption increases the pressure on our industry to effect meaningful the future 9 change across long-standing issues. Key aspects of debate, such as payment 7. Agents and Schools Receivables - Managing Risk Together 10 terms, costs and contributions, and overhead business costs now need to be addressed with urgency in order to establish new strategies, ways of working 8. Expected Top Destinations Post-Covid 11 together, and best practice for the future. 9. Key statements – Where Agents and Schools Agree/Disagree 12 It is with a spirit of collaboration and free exchange of information that ALTO Key statements - Where Glogal Agents and All Schools Agree/ has conducted this research. It brings together agencies and agency association Disagree 13 leaders, schools and school sales teams and practitioners from within the ALTO membership, and across the wider Education and Language industry. We’ve In conclusion 14 gathered regional and global data to help inform the strategies of both agents and schools. This research helps identify opportunities to address inefficiencies that cut into the viability of the industry, and ways to mutually mitigate losses. TIP This survey seeks to build on a long-established debate and is a concerted effort Click on the blue box for the interactive reports to create meaningful change in a post-Covid industry, so that together we can that are region specific rebuild a more robust industry within a new economic situation. 111 Schools, 246 Agents, 5 regions The Future of Adult Language Travel - 2020 and Beyond | PAGE 2 1. Participating Educational Agents Educational Agents from the 5 main Language Education markets are represented in the survey including members from agency associations who have broad oversight into regional circumstances. France International Agents 12 Russia 26 9 Spain Other 9 5 l | 26 iona nat Ukraine ter In E 9 ur op e & Turkey 0 3 R Germany | u 25 s A s 8 N ia E | M 6 7 & Italy y e k 7 r u T UK Other | 3 TOTAL 7 Japan 5 Other 6 South Korea A 6 S I 246 A | 3 7 Taiwan 11 8 4 | l zi ra B Thailand 12 Brazil LA TAM 48 | 38 Other 7 Colombia 14 Mexico 17 The Future of Adult Language Travel - 2020 and Beyond | PAGE 3 2. Participating Language Schools All major Language School destinations are represented. Where schools have destinations in more than one county they fall under the International section. Participants surveyed were drawn from ALTO members, and non-members. English Language schools represent the majority of participants with other languages making Malta up the “Other” section. Germany 5 5 United Kingdom Canada 20 5 South Africa 8 Ireland TOTAL 9 Other 111 19 United States 11 Australia International 11 18 The Future of Adult Language Travel - 2020 and Beyond | PAGE 4 3. Main Adult Language Programmes (16+) offered Agents and Schools were asked what are the main Global Adult Language Programmes (16+) offered Global: Distribution of Individual and Group programme business Global Agents distribution Global Schools distribution Individuals Groups Individuals Groups 40-60% 40-60% 0-20% 80-100% 80-100% 20-40% 0-20% 0-20% 20-40% 20-40% 60-80% 60-80% 0-20% 40-60% 80-100% 60-80% 20-40% 80-100% 40-60% 60-80% Individuals (adults) represent the main groups of students for both agents and schools, with all areas indicating that Groups make up less than 20% of their overall business. This basic division remains consistent through throughout the regions for both schools and groups with the markets. The Future of Adult Language Travel - 2020 and Beyond | PAGE 5 4. Course Duration – How long do students study? Agents and schools were asked what percentage of their business is divided Key findings: between short, mid and long-term bookings. The balance is consistent across Asia has the highest percentage of mid and long-term bookings. Agents and Schools. Europe has the most short-term bookings LATAM – largest number of agents report 24+ weeks as being 60-80% of bookings. The percentage of short- and long-term booking is similar. Global Comparison of Course Duration Global Agents course durations Global Schools course durations 1–11 weeks 12–23 weeks 24+ weeks 1–11 weeks 12–23 weeks 24+ weeks 80-100% 40-60% 20-40% 80- 60-80% 20-40% 40-60% 0-20% 60-80% 0-20% 100% 0-20% 20-40% 0-20% 20-40% 40-60% 60-80% 40-60% 60- 0-20% 20-40% 60-80% 40-60% 80-100% 20-40% 0-20% 60-80% 40-60% 80-100% 80% Click here to see a regional comparison. PAGE 4 The Future of Adult Language Travel - 2020 and Beyond | PAGE 6 5. Impact of COVID 19 and Booking Expectations for Adult Language Travel We asked participants to quantify the impact of Covid-19 by comparing their We also want to understand the priorities that will influence student decisions estimated short/mid-term student bookings against pre-Covid-19 levels. when travelling to study abroad in the future. What is your expectation of percentage of student bookings compared to 2019 expected in 2020/2021? Comparison of all Agents and Schools Expected percentage of student Percentage of student bookings compared to 2019 expected in 2020/21 62% 62% Agents and Schools combined answer All Agents 59% 61% 58% As a combined group average, Agents and Schools are expecting less than 20% of All Schools 55% their 2019 bookings this summer (2020). This rises to 25% in Sep–Dec 2020 and 43% Combined Agents and Schools 46% in Jan–May. The forecast against 2019 levels for 2021 is 58% Jun–Aug, and 63% 43% Sep–Dec. Globally, Agents were more optimistic than Schools, anticipating 37% between 7 and 15% higher booking across all periods and levelling out to a similar prediction of about 60% at the end of 2021. 27% 25% 21% Schools Note: 17% 16% 14% In all regions except Asia, schools were more pessimistic than agents. School and Asian agents’ predictions are aligned until Summer 2021, at which point Asian Agents predict lower bookings of between 5 and 10% as the year progresses. The biggest spread is between the expectation of Schools and Agents in LATAM where Jun–Aug 2020 Sep–Dec 2020 Jan–May 2021 Jun–Aug 2021 Sep–Dec 2021 agent predications are 10-13% higher than schools. The Future of Adult Language Travel - 2020 and Beyond | PAGE 7 5.1. Regional Agent Comparison - Covid 19 Impact Agents in all regions expect less than 1/3 of their 2019 bookings from September International Agencies consistently predicted higher percentages of bookings to December, around 50% from January to May, 60% for summer 2021, and between than most regions and represent the most optimistic group for January to August 50 and approximately 62% for September – December 2021. Of the regions, 2021, then levelling out to the average prediction of a 67% return to 2019 levels. LATAM is the most optimistic, followed by Brasil, with Asia predicting the lowest percentage return of business. “We expect to reach the pre-Covid-level in late 2021/early 2022 only.” EUROPE & RUSSIA Comparison of Agents in all Regions Percentage of student bookings compared to 2019 expected in 2020/21 71% 70% 67% 65% Agents All Regions International 63% 62% 62% 61% LATAM ASIA 59% 59% 57% 56% Brazil Turkey & MENA 53% 53% 50% 51% 51% Europe & Russia 48% 46% 40% 38% 33% 31% 31% 27% 27% 24% 22% 21% 20% 17% 17% 17% 15% 14% Jun–Aug 2020 Sep–Dec 2020 Jan–May 2021 Jun–Aug 2021 Sep–Dec 2021 Click here to see a regional comparison. PAGE 8 The Future of Adult Language Travel - 2020 and Beyond | PAGE 8 6. Expected Post-Covid Language Travel Priorities for students in the future In this section, Agents and Schools were asked to rank the following statements Participants also commented that mitigating health and economic concerns in order of importance. This helps us understand customer priorities and identify associated with travel would be key to building parent and student confidence in regional differences. the industry. The issues raised include the clarity and timeliness of government response, visa policies, and flexible booking and cancellation options. Globally, Agents and Schools agree on the ranking of the priority expectations. • Asia and Turkey put a higher priority on the Access to Quality Medical Care in the Government Policy of the Host Country leads in all regions with the next priority Host Country and Appropriate Insurance coverage for Arriving Students.
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