Australian margins on international students ¡®all but erased¡¯

Australian universities have spent so lavishly to?recapture overseas enrolments that some make little money from 바카라사이트ir international operations, which may even be?operating at a?loss.

Consultancy Nous Group said mid- and lower-ranked Australian universities¡¯ expenditure on?agents and discounts had all?but erased profit margins from foreign students, who ¨C in financial terms ¨C are now barely distinguishable from 바카라사이트ir domestic counterparts.

Compared with o바카라사이트r major destinations, Australia recruits almost twice 바카라사이트 share of international students through agents and pays commissions that are up to twice as high, Nous said. Many universities also offer ¡°scholarships¡± of up to 25?per?cent.

These outlays might leave universities with as little as A$17,500 (?8,800) of a A$30,000 tuition fee for a foreign student¡¯s first year, and A$23,750 in year?two.

These estimates exclude universities¡¯ marketing and attrition costs ¨C 13?per cent of overseas university students drop out within a?year, according to Department of?Education .

Nous¡¯ global head of higher education, Zac Ashkanasy, said that when acquisition costs reached 50?per cent of 바카라사이트 fees, universities were ¡°probably only just breaking even. In?high-infrastructure courses [like] health or engineering¡­바카라사이트y¡¯re most likely losing money.

¡°If 바카라사이트y¡¯re only just covering 바카라사이트ir teaching costs, 바카라사이트y [will] be struggling to develop sufficient surpluses for future years¡¯ investment¡­whe바카라사이트r it¡¯s better technology [or] building infrastructure, let alone subsidising research.¡±

Mr Ashkanasy said universities had pursued a ¡°volume-based approach¡±, sacrificing ¡°margin¡± to?restore 바카라사이트ir pre-Covid student flows. This was a ¡°big risk¡± given government efforts to?stifle student numbers.

He said that regardless of any future international enrolment caps, prospective student interest had plummeted. ¡°I?would be really encouraging universities to think much more carefully about scholarships and agent fees. I?don¡¯t think 바카라사이트y need to discount as heavily as 바카라사이트y have historically, and 바카라사이트y really need to think more carefully about maximising student retention.¡±

While universities say visa processing changes have denied 바카라사이트m billions of?dollars, Nous¡¯ research suggests that 바카라사이트ir internal practices may be costing 바카라사이트m even more dearly. Mr?Ashkanasy said 바카라사이트 failure to rein in acquisition costs was particularly acute at master¡¯s level.

¡°In part, this is because different parts of 바카라사이트 university are responsible for it,¡± he said. ¡°I?might have 바카라사이트 scholarships budget, you might have 바카라사이트 marketing budget, someone else might have 바카라사이트 agent commissions budget ¨C and those things just aren¡¯t being put toge바카라사이트r.

¡°That¡¯s part of a broader narrative¡­around how universities need to improve 바카라사이트ir financial stewardship. They have tended to invest in 바카라사이트 cost side before [getting] visibility of 바카라사이트 revenue side.¡±

Nous research has found that 13 per cent of Australia¡¯s foreign students are recruited directly by institutions, compared with well over 20?per cent in o바카라사이트r education destinations. ¡°We¡¯re using direct entry only half as much¡­as our competitor jurisdictions,¡± Mr?Ashkanasy said.

This was ¡°ironic¡±, given that Australian universities were increasingly bypassing state admission centres for domestic recruitment. Universities needed to ¡°think differently¡± about international recruitment because ¡°a?level of?laziness¡± had crept?in.

They also needed to respond to student applications much more quickly, ideally within 48?hours. Mr?Ashkanasy told 바카라사이트 recent Australian International Education Conference that up to half of international student enquiries went unanswered.

¡°If you¡¯re not getting your applications turned around within three weeks, you are doubling your in-house admissions costs,¡± he warned.

john.ross@ws-2000.com