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Japan loses pace
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Despite the gloom and doom of Japan’s economic outlook, agents have identified potential growth areas in the language travel market for this year.
| Key points |
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| • The total number of students placed by the nine agencies in our survey was 10,204
• Individual agencies placed between four and 5,000 students on language courses each year
• Average business growth was –3.3 per cent
• The average length of stay for Japanese students was 14.2 weeks
• Overall, 75 per cent of Japanese students stayed with host families when studying overseas
• 37 per cent of Japanese students took a language course for their studies overseas
• Half of the agencies in our survey charged a handling fee of between 30,000 yen (US$312) and 680,000 (US$7,065) depending on length of stay
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| Top destinations |
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Most popular courses |
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1. Australia 25%
2. UK 19%
3. USA 18%
4. France 13%
5. Spain 11%
6. Canada 10%
7. New Zealand 2%
Other 2%
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1. General 39%
2. Intensive%
3. Junior 10%
4. Acad./exam prep 9%
5. Business 4%
6. Work 3%
6. Summer 3%
8. Univesity found. 2%
others 1% |
| Reasons for language travel |
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Average percentage agency business |
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1. Studies overseas 37%
2. Future work 28%
3. Pleasure 13%
4. Studies at home 12%
5. Current work 7%
Other 3% |
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1. Language progr. 51%
2. Work & travel 15%
3. Higher education 11%
4. Volunteer 4%
5. Internships 2%
Other 17% |
How do agencies recruit students?
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How do agencies find new business partners? |
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1. Website 51%
2. Word-of-mouth 13%
3. Mailshots 13%
4. Seminars 9%
5. E/online marketing 7%
6. Press 3%
Other 4%
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1. Internet 48%
2. LTM/ETM 14%
3. Workshops13%
4. Fairs and expos 10%
Other 15%
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| Percentage of agents who recognised each of the following organisations |
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Australia
Acpet 44%
English Australia 56%
Canada
Languages Canada 56%
France
Souffle 22%
FLE.fr 11%
L'Office 0%
Unosel 0%
Ireland
MEI 44%
Italy
Asils 22%
Italian in Italy 11%
Malta
Feltom 22%
New Zealand
English NZ 44%
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Portugal
Aeple 0%
South Africa
Eltasa 0%
English SA 0%
Spain
Fedele 33%
UK
ABLS 11%
English UK 44%
British Council 56%
USA
AAIEP 44%
Accet 33%
CEA 33%
UCIEP 22%
International
Eaquals 33%
Ialc 56%
Quality English 44%
Tandem 22%
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Market growth
At first glance, the Japanese language travel market appears to be very healthy with an average growth in business across the nine agencies that took part in this issue’s survey of 83 per cent. However, the true picture is distorted by one new agency that recorded a 600 per cent rise in bookings last year, which was only its second year in business. Excluding this figure, average market growth stood at –3.3 per cent. Closer analysis of performance reveals a relatively stagnant market that has lost pace since our last survey (see LTM, November 2008, page 22): a third of agencies reported an increase in student numbers last year, while a further third said numbers had fallen. Two agents reported a decrease in student numbers of between 10 and 30 per cent.
Language and destination trends
While English, accounting for 70 per cent of bookings, remains the number one language choice in the Japanese market, there has over recent years been some diversification and this is evidenced in our survey. French and Spanish each acquired an 11 per cent share of all agency bookings, with a further two per cent opting to learn German overseas. However, it should be noted that the market share of French and Spanish is boosted by the fact that one agent specialised only in French language programmes and one in Spanish. There was also a jostling for position in the league table of top destinations. Last year’s leader, the USA with 24 per cent of the market, dropped this year to third place and accounted for only 18 per cent of agency bookings. Meanwhile, Australia leapt into first place with 25 per cent, followed by the UK with 19 per cent.
Student and course trends
The main reason why students took a language travel programme overseas was in preparation for their further studies abroad. However, the proportion of students estimated by agents to take a course overseas for this reason had slipped from 43 per cent last year to 37 per cent in this year’s survey. The next most important reason for students to embark upon a language travel programme was for future work, while learning a language for pleasure was the third most popular reason given, accounting for 13 per cent. Demand for academic and exam preparation programmes increased from three per cent in last year’s survey to nine per cent this year.
Agency business
Interestingly, in the Japanese market, there are a number of agencies that specialise in only one language and/or destination. In our survey, for example, apart from the agency that dealt only with French language programmes and the one that specialised in Spanish courses, there was another that exclusively dealt with Canada. Language courses accounted for just over half of all agency bookings while placements in higher education overseas made up a further 11 per cent, up from four per cent previously. Demand for work and travel programmes also increased, making up 15 per cent of bookings, compared with 11 per cent in 2008.
Looking ahead
Despite the bleak economic outlook for Japan, language travel agents remain relatively optimistic. One mentioned that demand for courses targeted at specific job sectors would become more popular, while another said they had already experienced higher demand for pre-masters and Ielts courses.
Economic overview
• Japan, the world’s second-largest economy, has been hit hard by the global economic crisis with demand for its exports drying up. As a result, Japan’s GDP was down by 0.7 per cent in 2008, the first decline in nine years.
• Japan’s real exports dropped by a record 13.9 per cent in the fourth quarter of 2008 as the global slowdown choked off demand for the country’s cars and electronic goods. An appreciating yen also affected the country’s exporters, including Toyota and Sony.
• The Organisation of Economic Co-operation and Development (OECD) forecasts that Japan’s GDP will shrink by a further 6.6 per cent in 2009.
Source: Economist.com; The Washington Post
Japanese agents named a range of language programmes they work with, including, in Australia: Australian College of English, various; Cambridge International College, Melbourne; English Language Company, Sydney; Gold Coast English Language School, Gold Coast; Melbourne Language Centre, Melbourne; RMIT University, Melbourne; Southbank Institute of Technology, Brisbane. In Canada: International House, Toronto; PLI, various. In France: Accent Francais, Montpellier; Alliance Française, Rouen; French in Normandy, Rouen; PERL, Paris. In Spain: Clic, Seville; Enforex, Madrid; International House, Barcelona; Malaca Instituto, Malaga. In the UK: Anglo Continental, Bournemouth. In the USA: ELS Language Centers, Princeton, NJ; Selnate International School, Provo, UT. International: EC; Embassy CES; Eurocentres.
Thank you to the following agencies for taking part in our survey: AJ- France; Be Ryugaku; Gio Club Study Abroad; Global Study/Zenken Career Center Inc; Interac Co; Kaleido Ryugaku Service; Ryugaku Journal; Sun-Rise International; U23 Student Information Centre.
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Contact any advertiser in the this issue now
The following language schools, associations and accommodation providers advertised in the latest edition of Language Travel Magazine. If you would like more information on any of these advertisers, tick the relevant boxes, fill out your details and send.
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