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?