As of this year, however, that pathway enrolment has now dwindled to the “low single digits” according to industry experts. This dramatic shift is the result of new immigration settings that essentially upended that national network of joint programmes.

Not enough PALs

The challenge to the pathway model first appeared in the form of Canada’s cap on foreign enrolment in January 2024. That cap is in part administered through an inventory of Provincial Attestation Letters (PALs) that are allocated by the federal government to each Canadian province or territory. Each provincial or territorial government in turn distributes its PAL inventory among its respective Designated Learning Institutions (DLIs). The pattern that has emerged over the first years of the cap system is that (1) PAL allocations tend to be heavily weighted to public institutions and (2) the allocations for language schools are often very modest.

In 2026, for example, Ontario, the province that is home to the country’s largest share of international students, allocated 96% of its PALs to public colleges and universities in the province. Only 4% were reserved for language schools, private universities, and other institutions.

The change of status problem

Subsequent to the introduction of the enrolment cap, Immigration, Refugees and Citizenship Canada (IRCC) also introduced that sets out that an international student, “Must be enrolled in the designated learning institution (DLI) named on [their] study permit. This means [they] can no longer change DLIs by letting us know through [their] online account. To change DLIs, [they] need to get a new study permit by applying to extend [their] current one.”

This directly impacted the traditional pathway model in Canada in that students would now need to apply for a new study permit as they moved from one pathway partner (one DLI, that is) to the next.

In short, that combination of a limited inventory of PALs for language schools and the additional uncertainty introduced around the new change of status provisions meant that the conventional pathway model in Canada was no longer viable.

Creating a new pathway model for language study

On the heels of those earlier policy changes from 2024, IRCC introduced a further revision to its rules for “joint programmes resulting in a single credential” in July 2025.

Languages Canada, the peak body for language training in the country, sought clarification from IRCC as to how that new rule might apply to pathway programmes. “The idea we began with,” says Languages Canada Executive Director Gonzalo Peralta, “is that language itself could be the joint programme.”

In November 2025, the association received confirmation from IRCC that the new rule around joint programmes could indeed be applied to a language study pathway.

This determination led Languages Canada to create a new model for pathways – the (JPP) – and to operationalise that new model via a limited pilot beginning in February 2026.

Languages Canada explains that in the JPP, “Lower-level language education is delivered by the private partner, followed by upper-level language education at the public partner. Students remain within a single joint programme under one study permit. The public institution issues a [letter of acceptance, LOA] and PAL naming both DLIs and specifying the joint programme. The public institution conducts LOA verification and compliance reporting, and issues a conditional LOA for the academic programme [outside of the JPP].”

That model is based on IRCC’s current for joint programmes which set out that:

“Students pursuing a joint programme that results in a single credential may be issued

• one provincial/territorial attestation letter from the province or territory of the DLI issuing the credential and
• one study permit for the DLI issuing the credential for the entire duration of their studies (or for the duration of their passport validity, whichever comes first).

The DLI issuing the credential must

• issue the LOA with no academic conditions required to advance to the next DLI in the joint programme
• complete the LOA verification activity
• complete the international student compliance regime report, which includes reporting on the student when they are studying at any other DLI that is part of the administration of the joint program”

With that operational guidance in place, the benefits for each partner in the JPP are clear. As Languages Canada explains, “For private language schools, the JPP creates a compliant pathway for study permit students and helps navigate PAL scarcity. For public institutions, it offers a way to increase intake by partnering with trusted private partners and leveraging established recruitment pipelines in diverse markets.”

Going nationwide

Based on the findings from the early pilot and on the considerable demand from prospective pathway partners, Languages Canada announced at its annual conference in March 2026 that the JPP pilot will now be rolled out nationally. “The Joint Pathway Program aims to bring language pathway programmes back to Canada’s education ecosystem, in a structured and responsible way that protects students, institutions, and Canada,” says Mr Peralta. “By aligning language education with post-secondary pathways in a clear and coordinated way, we are restoring confidence in Canada as a destination of choice for international students.”

Along with ILSC and Oxford International, ILAC is a participant in the pilot. “As an established leader in Canadian pathway programmes, ILAC is committed to using the JPP to continue delivering an exceptional student journey, offering a smooth, supported transition from our language programmes to post-secondary institutional partners,” adds Senior Vice President Partnership Development and Career Colleges Magdalena Link. “The IRCC-approved JPP further amplifies these opportunities, opening new doors for students pursuing higher education in Canada. The benefits for students are clear: the JPP removes the risk associated with change of status or applying for a new study permit. It offers more certainty as students can transfer from the private language school partner to the public post-secondary partner under a single study permit.”

“Our objective is to bring pathways back to Canada,” says Languages Canada’s Peralta. “Within three to five years, we want to have at least 10% of language students in pathways.”

For additional background, please see:

• “Canada’s foreign enrolment has fallen by nearly 300,000 students over the last two years“
• “Canada: A case study of immigration policy impacts on postsecondary institutions and the wider economy“
• “Canada announces international student cap numbers for 2026 and updated programme guidance“
• “Nearly 30 Canadian language programmes closed in Q1, marking the ‘sharpest decline in the sector’s history’“
• “Canada’s language sector buffeted by policy changes in 2024“

The post Canada’s language training sector reinvents pathway programme model in response to policy settings appeared first on ���Ϲ��� Monitor - Market intelligence for international student recruitment.

The Q4 data reveals an overall year-over-year increase from the same quarter in 2024, but an even deeper, long-term drop from pre-COVID volumes. The number of student weeks fell by -21% from Q4 2024 to the last quarter of 2025. Comparing the same quarter from last year to 2019, the declining volume – at -43% – is even more severe.

The bright spot, as has generally been the case over the last several years, is in the junior category. While junior weeks are still down by -35% from the pre-COVID benchmark in Q4 2019, they rose by 5% from Q4 2024 to Q4 2025 on the strength of stronger bookings from Spain and Chile.

The additional chart below reflects the absolute changes in student weeks volumes for each quarter in 2025, compared to the same quarter in 2024 and broken down into the junior and adult categories.

General English programmes remain by far the most popular course type across UK ELT, accounting for 89% of junior bookings and 88% of adult enrolments in the last quarter of 2025.

Saudi Arabia continues to be the leading sending market for UK ELT, followed by Türkiye, Japan, Brazil, South Korea to round out the top five.

Stepping back to look at other important segment characteristics for 2025 as a whole, English UK notes that nearly eight in ten ELT enrolments (77%) during the year came via an agent, and that a similar proportion (78%) were for individual (as opposed to group) bookings.

For additional background, please see:

• “UK ELT reports declining enrolments for first half of 2025“
• “Global ELT volumes dipped in 2024“

The post UK ELT reports challenging enrolment trends continued through last quarter of 2025 appeared first on ���Ϲ��� Monitor - Market intelligence for international student recruitment.

English Australia, the peak body for the ELICOS sector, has published a Market Analysis Report exploring the data. The report does not include information on enrolments and commencements because full-year numbers have not yet been released by the government, but it does give a detailed picture of demand for study in Australia under the country’s updated immigration settings and fee structures.

ELICOS visa applications down nearly 40%

On average (across all education sectors), study visa application numbers were down -14% in 2025 compared with 2024, and this is on the heels of a -21% decrease the previous year.

However, unlike for other sectors, demand for university studies in Australia remains strong: the number of visa applications filed in 2025 was greater than in 2019 despite a -2% drop compared with 2024.

It is demand for other kinds of study – especially short courses – that is plummeting. Between 2024 and 2025, visa applications fell:

• -35% for VET
• -14% for K-12 schools
• -39% for ELICOS programmes

The effect of visa application increases

The Australian government has rapidly increased study visa application fees over the past two years. In 2023, the fee was AUD$710. This increased +125% to $1,600 in 2024, then to $2,000 in July 2025.

ELICOS providers deliver courses that are far shorter, and less expensive, than university degree programmes. English Australia explains the disproportionate impact of the fee hikes on demand for English-language-only programmes:

“In 2025, the Labor government confirmed it would raise the world’s most expensive student visa application charge [then $1,600] another 25% to AUD$2,000. By this stage ELICOS applicants were experiencing the highest rate of student visa application refusal on record and were being asked to pay an average of 30% to 40% of the cost of their study to apply for a student visa that saw 1 in 4 applicants refused. The application numbers fell immediately again … These step-down shifts at the point of introduction of these visa fee hikes make it very clear that the AUD$2,000 non-refundable charge has made Australia far less attractive for short term students.”

The lowest volume of visa grants in 20 years

Overall, the number of visas that Australian immigration officials granted to international student applicants fell -2% between 2024 and 2025. Again, the decrease was not felt equally across education sectors:

• The higher education sector experienced a marginal -1% decline in visa approvals compared with 2024, and visa grants were actually up +14% when compared to 2019 levels.
• The VET sector saw a small increase in visa grants in 2025 compared with 2024, but this was still -45% lower than in 2019.
• K-12 schools saw -17% fewer visas granted in 2025 than in 2024. Since 2019, the decline has been -28%.

For the ELICOS sector, the severity of the decline in visa grants is illustrated in the fact that in the last six months of 2025, fewer visas were granted for study at an ELICOS provider than at any other time over the past 20 years.

The damage to the ELICOS sector since 2024 can be seen across several measures, including job losses. The visa application fee is estimated to have resulted in 5,000 to 9,000 full-time job losses over two years in ELICOS institutions.

Of all the statistics, job losses should give readers serious pause. They represent the impact to staff, institutions, and schools that have contributed greatly to the development of the ELICOS sector over many years, and, by extension, to Australia’s economy.

The stakes are very high going forward. Speaking to ���Ϲ��� Monitor late last year, David Scott, the managing director at the Sydney-based English Language Company (ELC) said:

“If the student fee is not reduced significantly and very soon, the English language teaching sector, especially private independent colleges, is likely to disappear in the next 12–24 months. The introduction of the ‘extortionate, world’s worst, non-refundable visa charge of AUD$2000’, combined with the unprecedented increase in student visa rejections, has basically dealt a mortal blow to the English language sector in Australia. The once thriving sector is disappearing quickly as students turn their backs on Australia. Why would anyone pay AUD$2000 to study a short English course in a country that is likely to reject your visa and keep the fee? It makes no sense.”

No urgency for government

English Australia notes: “The report reveals what the ELICOS sector well knows – that 2025 saw ELICOS student numbers plummet further to new record lows even after very low numbers in 2024.”

“While there were initially signs that the government was considering lowering the student visa application charge for ELICOS and other non-award enrolments, discussions appear to have stalled, and Canberra has shown no urgency on the matter.”

For additional background, please see:

“Australia: With ELICOS under pressure, peak bodies push for reduction in ‘extortionate’ visa fees“

The post Australia: Full-year data for 2025 reveals impact of AUD$2,000 study visa application fee on ELICOS sector appeared first on ���Ϲ��� Monitor - Market intelligence for international student recruitment.

It is clear as well that ELICOS is the most severely impacted sector so far this year. Overall, international student commencements are down -16% in Australia YTD July 2025. Within that, higher education commencements are down relatively marginally (-2%), schools a bit more sharply (-10%), and VET providers more significantly again (-22%).

Many have attributed the downturn this year to the significant increases in Australia’s student visa application fee introduced over the past 15 months. In July 2024, the fee was increased from AUD$710 to AUD$1,600. In July 2025, it jumped again to AUD$2,000.

That amounts to an overall increase of 182% in just over a year, and it gives Australia the distinction of having the world’s most expensive visa fee, and by a considerable margin. For comparison, the fee to apply for a Canadian study permit is CDN$150 (AUD$172), and students need US$185 (AUD$299) to apply for an F-1 study visa in the United States.

Alongside those combined increases in the visa fee is a reported rise in rejection rates for offshore ELICOS applicants over the last three years. The Department of Home Affairs data for 2025 is not yet available but the data we can see indicates both that rejection rates are rising over time, but, perhaps more meaningfully, visa application volumes have declined sharply since 2022/23.

Ian Pratt is the managing director of , an ELICOS provider with six locations throughout Australia. He explains: “Visa fees are disproportionately damaging to the ELICOS sector. An AUD$2,000 fee on top of an AUD$100,000 university course is a serious consideration, but one that students will often accept. For a shorter ELICOS programme, however, that same AUD$2,000 can represent up to a third of tuition costs.”

“It is also important to remember that the increase in visa fees was coupled with a massive rise in the rejection of applicants. Many of these refusals simply do not make sense. Students might be willing to pay AUD$2,000 for a visa, but far fewer are willing to pay a non-refundable AUD$2,000 just to roll the dice at the Department of Home Affairs casino.”

“The reduction in student visa numbers for Australia has been an immense source of frustration for ELICOS providers. This is an entirely manufactured crisis,” he adds. “The two key factors driving the collapse in ELICOS enrolments are both government-made. The first is the absurd visa application fee. The second is MD-106 and the Genuine Student Test, which together have given immigration authorities an entirely subjective basis for rejecting visas. This discretion has been exercised with great enthusiasm. Every school has its own war stories of rejections that cannot be justified on any reasonable grounds.”

The impact is real

The dramatic increase in the visa fee and rising rejection rates have combined for a significant impact this year. Speaking to the in September 2025, English Australia Chief Executive Officer Ian Aird estimated that the huge drop in ELICOS numbers YTD 2025 have already cost the sector between 3,000 and 5,000 jobs.

Some of those losses have been concentrated in a series of high-profile school closures, including , (PICE), the , the , and, most recently, .

“If the student fee is not reduced significantly and very soon, the English language teaching sector, especially private independent colleges, is likely to disappear in the next 12 – 24 months,” says David Scott, the managing director at the Sydney-based (ELC). “The introduction of the ‘extortionate, world’s worst, non-refundable visa charge of AUD$2000’, combined with the unprecedented increase in student visa rejections, has basically dealt a mortal blow to the English language sector in Australia. The once thriving sector is disappearing quickly as students turn their backs on Australia. Why would anyone pay AUD$2000 to study a short English course in a country that is likely to reject your visa and keep the fee? It makes no sense.”

A renewed push for change

In a to the Prime Minister, Treasurer, Finance Minister, and several other cabinet ministers, the International Education Association of Australia (IEAA), English Australia and The Independent Tertiary Education Council Australia (ITECA), argued for a dramatic reduction in the visa application fee for students coming to Australia for programmes of less than a year.

The letter opens:

“The undersigned peak bodies, representing a substantial number of education providers, students and academics, and international education stakeholders, write to request an urgent reduction to the current AUD$2,000 non-refundable student visa application charge (VAC) for student cohorts applying to study:

• independent ELICOS programs and stay in Australia for less than 52 weeks
• non-award courses and stay in Australia for less than 52 weeks

…We believe a 50% reduction for these cohorts is both fair and necessary.”

The three sector bodies argue in the letter that the reduction is warranted because charging the full fee “for a course lasting months or weeks is inequitable,” that the increases in the visa application fee have had a particularly severe impact on ELICOS providers, that a reduction in short-term study and exchange numbers limits outbound exchange opportunities for Australian students, and that such short-term enrolments do not factor in Australia’s Net Overseas Migration (and, by extension, nor do they intrude on the government’s goals to reduce those net migration numbers).

The joint letter closes on a note of urgency:

“While our sector has a clear preference for the Government reducing the [visa application fee] for these cohorts without offsetting measures, we recognise that current arrangements have been factored into the Budget outlook. We are therefore prepared to work with the Government to identify measures that will deliver a progressive solution without direct harm to the economy, to business and to Australia’s reputation.

Given the urgency of the situation, we request prompt resolution of these concerns as opposed to any Discussion Paper or ongoing consultation. The sector and our international partners are calling for action and we are seeking to partner with the Government in ensuring that is delivered without unnecessary delay.”

Quick action needed

Speaking to , Mr Honeywood also underscored that time is of the essence with the sector under such pressure this year:

“As each week goes by the sector hears of yet another English Language provider forced to close their doors. The time for polite conversation about reducing this extortionate world-worst visa charge is over. The Government has the means to reduce this charge and IEAA is pleased that English Australia and ITECA have joined with us to keep pressing for action.”

In a follow up comment to ���Ϲ��� Monitor, Mr Honeywood adds that, “IEAA has been made aware that the Home Affairs Department is currently modelling some cost offsets that might be introduced to meet our request for the 50% visa fee reduction for the two requested student cohorts. There is also the prospect of the Department sending out a Discussion Paper for stakeholder input to ascertain sector support for any such cost offsets. But this will only serve to delay action being taken.”

For additional background, please see:

• “Australia’s Labor Party signals an increase in student visa fees“
• “Australia implements immediate doubling of student visa application fees“
• “Global ELT volumes dipped in 2024“
• “New analysis forecasts marginal growth for foreign enrolment in Australia through 2030“

The post Australia: With ELICOS under pressure, peak bodies push for reduction in “extortionate” visa fees appeared first on ���Ϲ��� Monitor - Market intelligence for international student recruitment.

Also reflecting the global trends from 2024, Ivana Bartosik, International Education Director at English UK’s research partner BONARD, notes that, “Across all major ELT destinations, Q2 2025 has seen a decline in student numbers.” She attributes the softer numbers in the first half of the year to continuing “policy uncertainty including enrolment caps, visa restrictions, and changes in government administration and an economic downturn in key source markets.”

Quarter by quarter

In a like-for-like comparison of schools that were operating across all of the survey periods, English UK says that reporting centres saw a -12% decline in students weeks from Q1 2024 to . As we see in the charts below, that decline is tied to softer adult learner numbers for the quarter.

The additional charts below for show a similar pattern, albeit with a decline in junior numbers as well. Student weeks for the quarter only marginally increased from Q1 (3%), but a similar like-for-like comparison finds that student weeks for the quarter, for that group of reporting centres, declined by -15%.

“Asian markets have been impacted by the trade war,” adds English UK. “Volatile exchange rates, economic slowdown, and uncertainty have also affected source markets, reducing outbound student mobility [thus far this year].”

Overall, the volume of student weeks for the quarter fell in relation to pre-pandemic benchmarks, representing 68% of Q2 2019 volume. This compares to the 72% recovery with respect to pre-pandemic levels reported for Q4 2024.

Key sending markets

In Q2 2025, the top 20 sending markets for UK ELT accounted for 89% of all student weeks. As it has been for some time, Saudi Arabia remains the top sender, albeit with a decrease of nearly 3,000 student weeks compared to the same quarter last year. More broadly, markets in the Middle East accounted for just over a third (34%) of all student weeks for the quarter.

Türkiye also held its spot as the second-ranked sending market, but also showed the strongest growth among top source markets, gaining just under 2,000 student weeks from the same quarter in 2024.

For additional background, please see:

• “Global ELT volumes dipped in 2024“
• “UK ELT reports a decline in student weeks for 2024“

The post UK ELT reports declining enrolments for first half of 2025 appeared first on ���Ϲ��� Monitor - Market intelligence for international student recruitment.

That amounts to 29 programmes that have ceased trading – 18 private centres, and another 11 affiliated with public institutions – with roughly 350 jobs lost as a result. The wider economic impact is larger still, with an estimated 3,300 jobs indirectly affected.

“Canada’s immigration system has become unpredictable and unwelcoming,” said Gonzalo Peralta, executive director of Languages Canada. “Students and their families now see Canada as too risky, and institutions are finding that Official Languages programmes are no longer financially viable.”

Languages Canada describes a “dramatic decline” in the sector over the last several years. Member-provided data reveals that between 2023 and 2024 alone, the number of students enrolled in language studies in Canada fell by -18% and student weeks by -21%.

As recently as 2019, Canada’s language training providers accounted for CDN$6.7 billion in economic impact and supported 75,000 jobs. Only five years later, in 2024, that estimated impact was reduced to CDN$3.7 billion and 35,000 jobs.

A separate advisory from the peak body elaborates on those jobs figures: “Sector-wide, there has been a 44% decrease in teaching staff and a 35% decrease in support staff between 2019 and 2024 (includes full time, part time and seasonal positions, based on member-reported data). The cuts have been more acute in the public sector, which has seen a 60% decrease in teaching staff and 75% decrease in support staff, while those numbers are 32% and 13% for the private sector.”

This decline represents, says the association, a “policy crisis of Canada’s own making.” The disruptive policy settings that have rolled out in Canada over the last 18 months have been well documented but, in 2024 alone, they amounted to 13 major changes to the country’s immigration policies and processes for international students.

Those new policy settings were ostensibly made to ease pressures on housing availability and rising costs of living in Canada. Languages Canada notes, however, that, the country’s language progammes “were not responsible for housing shortages (most students live with Canadian families during their studies) and did not displace Canadian workers (language students are not allowed to work). Nevertheless, they have borne the brunt of poorly targeted policies.”

“The most recent policy change prevents Official Languages students from transitioning smoothly into post-secondary programmes, dismantling long-standing and effective pathways between Canadian institutions,” adds the association. “This not only undermines decades of successful collaboration but also puts students and their families in precarious situations.”

Drawing on research indicating that international students that complete language programmes before post-secondary studies in Canada have better outcomes, Mr Peralta says, “Language [learning is] national infrastructure. It drives academic success, workplace productivity, and social cohesion. My hope is that our newly elected government asks how Official Languages education can be a strategic advantage to the country, as infrastructure to reaffirm Canadian identity, support productivity in all sectors, and foster inclusive and socially cohesive communities.”

For additional background, please see:

• “Measuring the impacts of the first full year of Canada’s foreign student enrolment cap“
• “Canada’s language sector buffeted by policy changes in 2024“
• “Canada’s new government strikes a more conservative note on immigration“

The post Nearly 30 Canadian language programmes closed in Q1, marking the “sharpest decline in the sector’s history” appeared first on ���Ϲ��� Monitor - Market intelligence for international student recruitment.

The just-released full-year numbers indicate a -18% decline in student numbers for 2024. Student weeks also decreased by -21% year-over-year.

Those headline figures come from Language Canada’s – a report that makes plain just how severely impacted the sector has been by the 13 regulatory changes introduced by the Canadian government since January 2024. In fact, 82% of responding language centres cited “visa refusals and policy changes by [[Immigration, Refugees and Citizenship Canada]” as the most significant challenges they faced in 2024.

“Frequent changes to immigration policies and study permit caps are undermining Canada’s attractiveness as a study destination,” says Languages Canada. “For language programmes to thrive, and for Canada to remain competitive in the global education market, federal policies must recognize the strategic role of official languages education as a foundation for student success and productivity, a driver of economic growth and jobs, and an essential factor in fostering Canada’s bilingual identity and national unity.”

The association estimates that the more than 92,500 students welcomed by member centres in 2024 generated nearly CDN$1.04 billion in direct economic activity through tuition, accommodation, and living expenses.

Languages Canada Executive Director Gonzalo Peralta adds that, “Nothing happens without language, and studies have demonstrated that learning English or French in Canada and having better language skills improve academic performance, workplace productivity, and community integration and safety.”

He continues: “Prime Minister Carney has indicated strong support for infrastructure initiatives and our new Minister of Immigration, the Honourable Lena Metledge Diab, has been a strong supporter and champion of language and education in the past. We are hopeful that this new government will steady the ship of immigration and adjust policies so that the integrity of both Canadian immigration and education are respected. Languages Canada is in conversation with IRCC, the Minister’s office, and other government officials to find better ways of producing results that are beneficial for Canada, for institutions, and for students. Our very first and targeted objective is to find a solution to the problem encountered by pathway students (requiring their second study permit in hand before beginning the next step in their journey). We will also be full participants in Minister Diab’s consultation process and take all means necessary to ensure that IRCC is respectful of Canada’s Official Languages Act.”

Where do students come from?

The following graphic highlights the top ten sending markets for Canadian language educators. Canada is included among those source markets, reflecting the numbers of Anglophone students that enrol in French studies, and the number of Francophone students who pursue English language studies as well.

Latin America has long been an important driver of language enrolments in Canada, and indeed there were still three Latin markets – Brazil, Mexico, and Colombia – counted among the top ten senders for 2024. More broadly, however, Asia won out as the leading sending region last year, accounted for nearly half of all student weeks (48%) and more than four in ten of all enrolments (42%). Japan remains the number one source market overall, with South Korea and China alongside it in the top five student markets for Canadian language educators.

Languages Canada adds that, “General English/French programmes remained the most popular choice, attracting 76% of total enrolments, up from 71% in 2023. Pathway programme enrolments saw the most significant decline, dropping by 56% and representing just 8% of total student enrolments.”

For additional background, please see:

• “Canada’s language training sector reached 82% of pre-pandemic benchmark in 2023“
• “Canada’s language training sector continues to strengthen amid new immigration settings“

The post Canada’s language sector buffeted by policy changes in 2024 appeared first on ���Ϲ��� Monitor - Market intelligence for international student recruitment.

The discussion during the forum also highlighted that while discounting may offer a short-term boost when opening new markets or coping with seasonal downturns, the long-term risks are severe. “Clients expect a lot more for a lot less,” said one participant. “The long-term risk is that it’s a very slippery slope to go down and once you’re at the bottom, it’s hard to climb back up.”

In fact, it is that prospect of a “race to the bottom” that really focused discussion at the forum, in that reduced margins threaten the sector’s sustainability and reputation over the long term, not to mention what they mean to the quality of the student experience across the sector.

Claudio Cesarano is the CEO of , a Zurich-based agency. He feels that there is “a bit of a mix” of factors behind the widespread discounting in the industry today. “At the end we’re selling a product like any other industry and we’ve all missed out a bit on giving it enough value. If there is enough value then there is no discounting.” He puts the practice down to a number of factors, including larger chains that are effectively buying market share through discounting, and, in the process, putting pressure on small operators to adapt. He also sees discounting in some hyper-competitive markets where agencies are compete with each other for a booking.

The practice is so widespread that when it comes to discounts, “I get it without asking. The genie is out of the bottle.”

Participants at the ALTO forum advanced a number of strategies for responding to that persistent pressure on pricing for language courses, including:

• Investing in staff training
• Developing innovative programmes for specific market niches
• Enhancing communications throughout the student journey and/or investing in student support services

Beyond that, the discussion stressed the importance of a more strategic and limited use of discounts – with specific time limits in place – and never as the default pricing option.

One school’s response

Leanne Linacre, the director of in Liverpool, has seen that pricing pressure firsthand. “The pressure to discount has definitely increased over the last few years,” she says. But she finds that it can also be driven by the customer in some markets, especially in cases where there is a culture of bargaining or expecting discounts or where the student’s home currency is more volatile. “Currency fluctuations have a huge impact,” she adds.

So too does the broader shift toward the junior market in many language learning destinations. “Juniors are coming for less time,” says Ms Linacre, “and so families are looking for a lower price; sometimes even scaling back on excursions or taking things out of a package to get the price down.”

For its part, LILA is responding by building additional value into its programmes, and by being strategic in targeting specific high-value niches. For example, LILA has introduced A level courses and university foundation programmes in order to better build its enrolment outside of the peak summer season and to boost the average stay per student. “It was a lot of hard work and a lot of time to get it off the ground,” Linacre says. “But that gave us time to build out our agent networks and to begin to build the enrolment base.”

In addition to that careful segmentation, LILA has also invested in expanding student supports. The school has introduced the Progression Platform, for example, as an in-person eight-module course for all levels of language learner. Students are offered Progression classes outside of their timetabled classes. This enriched programme is free of charge and focuses on skills – such as team building or communications – that students need to be successful outside of the language classroom, whether at university, at work, or in life.

“The students love it,” says Ms Linacre. “The challenge is letting the agents know about it in a way that they can understand and use to support sales but when they see what we’re the sort of school that goes the extra mile, it gives them the confidence to recommend us.”

The Liverpool language school has also invested in a new student lounge space – The Park – which features docking stations and other supports for digital nomads. The school is leveraging that space in a new Digital Nomad Package, which is specifically designed for students who want to improve their English skills while working remotely and networking internationally.

Segmentation, niche programmes, new services, and better student supports. In the view of the delegates at the ALTO forum, these are all effective strategies for countering downward pressure on prices. The forum also called for better collaboration between schools and agents, and for peak bodies in the sector to play a more active role in bring forward guidelines and advancing best practices to better stabilise pricing in the sector.

For additional background, please see:

• “Irish ELT sector sounds note of ‘cautious stability’ for 2024“
• “US ELT numbers moving toward pre-pandemic norms“
• “Economic impact of UK ELT estimated at nearly £2 billion“

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