The global education

market:

Introducing international

students and the INTO

model

Patrick Bird

Property Director

17th May 2012

The market

The market

In 2010, there were 405,000

international students in the

United Kingdom

In 2010, there were 408,000

students studying for UK

qualifications – outside the

United Kingdom

Share of international student market

The market

Bigger than big pharma?

Education exports

generate £14.1bn for the

UK economy.

This is forecast to grow to

potentially £26.6bn by

2025

Value of education and training exports to the UK economy 2008/9 (BIS 2011)

http://www.bis.gov.uk/assets/biscore/higher-education/docs/e/11-980-

estimating-value-of-education-exports.pdf

The market

Source : Higher Education Statistics Agency c/o CBRE

Importance

0

2

4

6

8

10

12

14

16

18

Nu

mb

er

of

insti

tuti

on

s

% Non-EU students

4% = c. £8 million p.a

UK

students International

students

Institution maintained

property 69% 31%

Private-sector halls 69% 31%

London Purpose built Student

Accommodation

UK

students International

students

Institution maintained

property 52% 48%

Private-sector halls 39% 61%

Source : Higher Education Statistics Agency c/o CBRE

Importance

All UK Purpose built Student

Accommodation

• 12 years of school, and

mostly non native English

speakers

• High net worth -

comparatively

• But still a very high stakes

investment

• Limited experience of

independent learning and

living

• Parental expectation

• A long way from home

Understanding the customer

Who are our students?

• Connected

• Demanding

• Paralysed by choice

and information

They want

authentic insights

70%

75%

80%

85%

90%

95%

100%

What’s important to students?

Recruitment Channels

• In-country fairs & school visits

• Online

• Agents and intermediaries

Understanding the customer

Source: INTO

Understanding the customer

Who makes the decision?

Source: INTO

2%

79%

19% 30%

42%

28%

51%

13%

36%

Postgraduate

(Graduate Diploma &

Graduate Pathway)

Undergraduate

(Diploma)

Pre-Undergraduate

(Foundation &

Undergraduate Pathways)

70%

75%

80%

85%

90%

95%

100%

How opinion changes over time

Understanding the customer

Source: INTO

Understanding the customer

What do people trust?

Source: Edelman Trust Barometer 2012

Understanding the customer

Repetition builds trust

Source: Edelman Trust Barometer 2012

The INTO model

Partner University

Global marketing and recruitment network and admissions

Operational Management

Student Services

Development capital and property services

Market research and insight

World-class university experience

for INTO students

Brand and reputation

Academic oversight and course validation

Student visa sponsorship

Progression into the university

INTO University Partnerships

INTO Joint Venture

Centres

Student

Delivering Pathway, Diploma, UG, PG, English language, Chinese language

Living experience

90% overall student

satisfaction

Student impact

“INTO has effectively had somewhere between a £12 and £13 million a year impact on

our bottom line; that’s about 10% of our income.” Professor Tony Stevenson, Pro-Vice Chancellor Planning and Resources at Newcastle University

University impact

• Understand that initial purchase decision is not

made on residential offering

• Think carefully of the particular needs of

international students

• Understand universities’ international strategy or

that of the local private provider

• Partner to promote a high quality living experience

• Access the market direct

So what?