This rebound highlights the resilience of Australia’s education sector and its ability to adapt to global challenges.
This rebound highlights the resilience of Australia’s education sector and its ability to adapt to global challenges.
In the dynamic landscape of international education, Australia has emerged as a global leader, reporting a remarkable surge in revenue from student recruitment in 2023. Australia’s income from international students proves the resilience of the education sector in general and international education in particular.
This year, Australia witnessed an astounding 86 percent increase in income from student recruitment, reaching an impressive $152 million. Such growth is particularly noteworthy when compared to other study destinations, which also saw increases albeit at slightly lower rates.
Among these competitors, the overall growth in recruitment revenue was 49 percent, reaching $199 million. This surge underscores the attractiveness of international education worldwide.
One of the most notable statistics is the 24 percent increase in Australia’s total student placement figures when compared to the pre-pandemic year of 2019. This rebound highlights the resilience of the country’s education sector and adaptability to market shock.
IDP shines amid growth
IDP, a prominent name in the international education sector, played a pivotal role in shaping this narrative. This year, IDP achieved a record-breaking feat by placing 84,600 international students globally. The company’s performance in key markets such as the UK, Canada, and the US saw impressive growth rates of 53 percent, 44 percent, and 45 percent, respectively. However, IDP’s English language test division, IELTS, faced a 5 percent revenue decline in India, primarily due to reduced demand for Canadian education.
The decline in IELTS testing volumes for Canada can be attributed to visa processing delays and elevated rejection rates, diminishing Canada’s appeal as a study destination. IDP’s acquisition of IELTS in India from the British Council in 2021 played a significant role in shaping its operations.
Outside of India, Global Service Education reported an 18 percent surge in IELTS volumes, driven by robust performances in markets such as Vietnam, Pakistan, and Nigeria. Overall, IELTS revenue grew by 7 percent, partly due to price increases across most markets.
IDP leadership change amid expansion
The leadership transition within IDP, with Tennealle O’Shannessy assuming the role of CEO and managing director in February, marked a significant moment for the organization. This transition followed Andrew Barkla’s seven-year tenure as CEO, during which he transitioned to a non-executive director role on the IDP board.
O’Shannessy’s commendation of the company’s robust performance highlighted IDP’s leadership in the global education services sector. She emphasized IDP’s role in assisting students and test takers in achieving their global academic and professional aspirations.
The resurgence in English language teaching post-pandemic also contributed to IDP’s success, resulting in a remarkable 62 percent surge in revenue. The return to classroom learning following pandemic-related disruptions contributed to increased demand, leading to higher prices for these services. Income from digital marketing and events experienced more modest growth at 10 percent, as institutions shifted their funds from digital marketing to events.
IDP’s expansion efforts in 2023 included the acquisition of several international education companies, such as The Ambassador Platform and Intake Education. Notably, Intake Education was acquired for a substantial sum of $71 million in cash, with a potential additional payment of $20.2 million based on specific conditions after a year.
Despite facing a 190 percent increase in travel costs, reaching approximately $7 million, IDP managed to keep its expenses below pre-pandemic levels. Additionally, the company increased its marketing spending by 35 percent, including a focused campaign on promoting IELTS during the latter part of the financial year.
Commitment to enhancing customer experience
Looking ahead, O’Shannessy outlined IDP’s commitment to enhancing customer experience and establishing human connections through technology and data. She commended the dedication of the company’s employees and their contributions to making a positive difference in the lives of customers. Her optimism for the promising year ahead reflects IDP’s resilience and adaptability in an ever-changing global education landscape.
Australia’s exceptional surge in student recruitment revenue in 2023, driven by key players like IDP, signifies not only the resilience of the education sector but also the enduring appeal of international education.
As the world continues to grapple with the effects of the pandemic, the performance of the international education industry serves as a beacon of hope and opportunity for students worldwide.
