Discounting, direct bookings and how better to use technology in the global study travel sector got the delegates at ALTO’s inaugural New York conference focused this month, with some of the central problems shared between education agencies and language schools laid bare for a big-name panel of education agencies to consider.
Victor Hugo Baseggio, Director and co-Founder of CI (Central de Intercambio) in Brazil; Krister Weidenhielm of Europe-focused ESL and almost-mythical figure OJ Kim, Founder of iAE Global in Korea, which has since expanded across operations Asia, faced a conference room full of owner-operators; many education brands and other established agency companies were represented.
With a combined student volume sent overseas annually by those three brands estimated as 100,000 by Chair, Sean Hale (ex-MD of Embassy), delegates were fascinated by their differing opinions on core issues.
How to tackle pricing for the end-consumer was debated: should agencies work with a net price and mark up, or work with commission agreed within standard gross prices so that a benchmarked price across markets is achieved?
Kim said agencies should be able to set their own price for products that they sell. “We have to evolve, we cannot be fed by schools any more.” There was a difference of opinion at ESL, with Weidenhielm suggesting this practice, not widely used it seems, could lead to a “souk” mentality.
Should different prices be made available according to market? Baseggio saw nothing wrong with this “if I were a school”, but one US-based delegate observed that it was illegal in the USA to sell the same product at different prices, adding legal complexity to the topic.
He warned a “partner” school should think carefully about driving a direct booking campaign in a market where they were well supported by agencies
Dynamic pricing, common in the hotel or airline industry, for example, was also up for debate, with a difference of opinion again as to whether this would be a good thing in an industry that traditionally fixes prices for an entire year in advance.
It was generally agreed that a technology platform would be required to accommodate the concept of a fluid price point, which led to a detailed consideration of how the industry might use technology to evolve.
Pricing apart, there was much support in the room for a standardised online booking form that could be consistent across all players and eliminate the need for re-entering booking details and human error. Baseggio said, “I want to improve the quality of life of my employees, they could better use their time rather than inputting data and amending details [to conform to school booking processes].”
A stumbling block was the financial and logistical hurdles, although there was some appetite for ALTO members agreeing on a standard booking template.
Direct bookings were also tackled, with Baseggio and Kim sanguine about schools developing direct booking channels. Baseggio said they were discussing enabling their clients to contact partner schools directly, and both underlined that they added value to the booking process.
Weidenhielm was less accommodating, warning that a “partner” school should think carefully about driving a direct booking campaign in a market where they were well supported by agencies.
The inaugural event in New York also featured business experts – such as Adam Bryant, famous in the USA for his Corner Office column that interviews successful CEOs – and socialising opportunities.