How best to work with Brazilian agents to meet their needs

Market Research 2013

Segment of International Education and Exchange Programs in Brazil

SUPPORT:

MARCH 2013

Metodology and sample

METHODOLOGY

SAMPLE

PERIOD OF DATACOLLECTION

QUANTITATIVETelephone Call

80 cases

08 to 21 January 2013

Profile of the respondent

62,0%

38,0%

66,3%

33,8%

Feminino

Masculino

2013 2011

62,6%

37,5%

67,6%

32,4%

Graduação

Pós Graduação

2013 2011

6,3%

35,0%

22,5%

15,0%

21,3%

2,8%

32,4%

22,5%

19,7%

22,5%

Menos de 1 ano

Entre 1 e 5 anos

Entre 6 e 10 anos

Entre 11 e 15 anos

Mais de 15 anos

2013 2011

Work at the agency since

36,3%

28,8%

15,0%

7,5%

12,6%

50,7%

32,4%

12,7%

4%

Sócio/Proprietário

Diretor

Gerente

Coordenador

Outros

2013 2011

Position at the agencyEducation Level

Sex

Male

Female

Graduation

Postgraduation

Less than 1 year

Between 1 and 5 years

Between 6 and 10 years

Over than 15 years

Between 11 and 15 years

Shareholder / Owner

Director

Manager

Coordinator

Other

Base 2013: 80

Base 2011: 71

Sample includes associate and non-associate

Q. Is your agency a Belta member? (SPONTANEOUS AND UNIQUE)Q. In what year did your agency become associated with Belta?

11,3%ALREADY

BEEN ASSOCIATED WITH, BUT ARE NOT

MORE

43,8% NEVER BEEN

ASSOCIATED

Base:80

45,0% ASSOCIATES

There is a balance between associate and non associate agencies. However the number of agencies becoming a Belta members was low last year . Among the 80 agencies contacted, there were only two new

members associated in 2012.

In 2011, 71 agencies were counted, with 56.3% (associate) and 43.7% (not associate).

Agency profile

Base 2013: 80

Base 2011: 71Q. In what city is your agency located? (SPONTANEOUS AND UNIQUE)

67,7%

17,6%

7,6%

7,5%

74,7%

9,9%

7,0%

5,6%

2,9%

Sudeste

Sul

Nordeste

Centro Oeste

Norte

2013 2011

23,8%

21,3%

21,3%

33,8%

21,1%

18,3%

18,3%

42,3%

Até 5 anos

De 6 a 10 anos

De 11 a 15 anos

Mais de 15 anos

2013 2011

Location Tempo de mercado

Up to 5 years

From 6 to 10 years

From 11 to 15 years

Over 15 years

Southeast

South

Northeast

North

Midwest

Agencies works with small team

Base 2013: 80

Base 2011: 71Q. Currently how many employees work at the agency? (SPONTANEOUS AND UNIQUE)

45%71,8%*

32,5%

Up to 5 employees

From 6 to 10 employees

2013 2011

13,8% 14,1%From 11 to 30 employees

8,8% 14,1%More than 30 employees

* In the research of 2011, the average of employees was up to 10 employees. In 2013, this average was dismembered.

All agencies work with languages course

Q. In general, what are the activities of your company? More than anything else? (Spontaneous and multiple)

COURSES

Language Course 100% 97,2%High School Abroad 77,5% 84,5%Vocation Course 81,3% 76,1%Postgraduate 47,5% 33,8%Graduate 33,8% 29,6%Specialization 40,1% 19,7%Language Course with the possibility of working 10% 14,1%Combined Courses 1,3% 8,5%Professional Courses 17,5% 5,6%Courses for people over 50 years 10% 2,8%Master's degree 2,6% 2,8%Courses for Executives 6,3%Educational Couseling 1,4%

WORK

Working Abroad 40,1% 36,6%Internship 10% 22,5%Au pair 8,8% 15,5%Voluntary Program 11,3% 2,8%Business Travel 1,4%Corporate Events 1,4%

CULTURAL TRAVELS

Vocation Packages 36,3% 49,3%Summer Camp/Holiday 2,8%Cultural Exchange in Brazil (High School) 1,4%

TRAVEL SERVICES

Health Insurance for Travel 43,8% 22,5%Purchase and Sale of Foreign Currency 2,6%Issuing of Tickets 41,3% 21,1%Reservation of Acomodation 30% 18,3%Assistance for Visa 27,5% 8,5%Exchange 4,2%

2013 2011

Base 2013: 80Base 2011: 71

Other with 1 mention: Car rental / College preparation course / Sports / Food / Dance / Music /:

Course language is the main activity of the agencies

Base 2013: 80

Base 2011: 71Q. And which of these is the main activity of the agency? (SPONTANEOUS AND UNIQUE)

63,4%

13,4%

7,3%

7,3%

8,6%

63,4%

22,5%

11,3%

5,6%

4,2%

2,8%

9,8%

Curso de idiomas

Highschool

Curso de férias

Pacotes turísticos

Programas de trabalho

Pós graduação

Outros

2013 2011

Languages Course

High School

Vocation Course

Vocation Package

Work Programs

Postgraduation

Other

Increases average time in the period between 4 and 6 months

Base 2013: 80

Base 2011: 71Q. In general, how long, on average, students stay abroad? (STIMULATED AND UNIQUE)

27,5%

37,5%

26,3%

6,3%

2,5%

21,1%

49,3%

15,5%

12,6%

1,4%

Até 1 mês

Entre 1 e 3 meses

Entre 4 e 6 meses

Mais de 6 meses

Não sabe/Não respondeu

2013 2011

There was an increase of 11 percent for students who stay abroad between 4 and 6 months, whereas the percentage has fallen to the same degree, those who stay between 1 and 3 months abroad.

Up to 1 month

From 1 to 3 months

From 4 to 6 months

More than 6 months

Did not know / Did not answer

Most students are aged 18 to 30 years

Q. And which age range represents the largest share of students? (STIMULATED AND UNIQUE))

The agencies continue sending more students who are the range of 18 to 30 years abroad. Note that the research of 2011, the survey predicted a higher number of age groups (7), which were shorter. Therefore,

the respondent could not choose a single range and the response that was originally single, became multiple.

Base:80 Base:71

20,0%

73,8%

6,3%

Até 17 anos

Entre 18 e 30 anos

Entre 31 e 50 anos

2013

33,8%

87,3%

19,7%

Até 17 anos

Entre 18 e 30 anos

Entre 31 e 50 anos

2011

Up 17 years old

From 18 to 30 years old

From 31 to 50 years old

Up 17 years old

From 18 to 30 years old

From 31 to 50 years old

Ranking of destinations remain

Q. Currently, what are the 3 main countries that have attracted more interest from students looking for courses abroad? (AND MULTIPLE SPONTANEOUS)

The Countries USA, Canada and UK remain among the most favorite of the students. Note that both in 2011 and 2013, the significant interest in the UK is exclusively for England.

Main countries of destination for students

Base: 80

2013 2011

Base: 71

91,3%

75,0%

68,8%

18,8%

16,3%

7,5%

6,3%

14,0%

Canadá

Estados Unidos

Reino Unido

Irlanda

Austrália

Espanha

Nova Zelândia

Outros

90,1%

69,0%

59,2%

25,4%

23,9%

14,1%

9,8%

Canadá

Estados Unidos

Reino Unido

Austrália

Irlanda

Nova Zelândia

Outros

Canada

USA

UK

Ireland

Australia

Spain

New Zealand

Other

Canada

USA

UK

Australia

Ireland

New Zealand

Other

Malta, South Africa and China: new destinations in 2012

Q. Compared with 2012 the previous years, you identify the development of new countries to the destinations? (MULTIPLE and SPONTANEOUS) Base :80

New Zealand: object of desire of students

Approximately 90% of the contacted agencies offer New Zealand as a destination for students. The greatest demand is for languages course, with almost 70%.

There is one feature in particular that this country stands for students. The cost / benefit ratio comes in 1st place, closely followed by the issue of security and easy visa.

Q. What is the most popular course looked by the students traveling to New Zealand? (STIMULATED AND UNIQUE)Q. From the situations which I will quote, which you associate New Zealand in first? And second place? And thirdly? (STIMULATED AND ONE PER LINE)

Base: 69

1st place

2nd place

3rd place

33,8% - Cost / benefit

25,0% - Security

23,0% - Easy visa

68,1%

27,5%

4,5%

Curso de Idiomas

Highscool

Outros

Languages Course

High School

Other

Investment varies according to the course

The average investment of the students varies with the course. The language courses and vocation courses, as well work and travel, are those that cost less on average compared to the others. The courses with a

longer duration, such as High School, Graduation and Postgraduation are therefore more expensive.

Q. Could you tell me what is the average investment per student in VALUES (dollars)? (STIMULATED AND MULTIPLE)

Investment of the students (dollar)

Minimum value Maximum value Average

Language courses $ 1500,00 $ 16000,00 $ 4868,30

High School $ 4000,00 $ 78000,00 $ 14975,40

Graduation $ 3100,00 $ 70000,00 $ 21764,20

Postgraduation $ 6000,00 $ 120000,00 $ 25238,00

Vocation courses $ 2000,00 $ 50000,00 $ 5823,50

Work programs $ 1500,00 $ 15500,00 $ 6235,80

Most agencies send up to 300 studentsIt is noted stability in the amount of students. From the year 2008 until 2012, remains an approximate

average of 70% in sending up to 300 students. When analyzed by associates agencies and not associates there is no difference in the volume of students.

Q. On average, how many students were sent abroad in 2011? And in 2012?

2008 2009 2010 2011 2012

Base 61 Base 61 Base 62 Base 70 Base 73

Up to 100 41,0% 34,4% 30,7% 34,3% 30,1%

101 to 200 24,0% 26,2% 22,6% 20,0% 23,3%

201 to 300 6,6% 13,1% 17,7% 8,6% 11,0%

301 to 500 13,1% 9,8% 11,3% 17,1% 16,4%

501 to 1000 4,9% 8,2% 8,1% 10,0% 9,6%

1001 to 2000 4,9% 3,3% 4,8% 4,3% 2,7%

3001 to 5500 3,3% 3,3% 3,2% 4,3% 5,5%

5. 500 or more

1,6% 1,6% 1,6% 1,4% 1,4%

167.432 U$ 1.159.516.829

Number of students sent InvestmentYEAR

2010

2012

BASE

96(UNIVERSE)

85.890 U$ 594.814.74871(SAMPLE)

78.852 U$ 546.074.42762

(PROVIDED DATA)

175.763 U$ 1.027.775.06595(UNIVERSE)

116.565 U$ 681.614.44981(SAMPLE)

98.617 U$ 576.663.42574

(PROVIDED DATA)

1.775

Average of students sent

1.209

1.271

1.870

1.439

1.332

Canada wins with languages course, high school, vocation course and work programs

Q. Thinking in the last decade, which country won more students (read each modality type)? (SPONTANEOUS AND ONLY ONE PER LINE)

WORK RELATED PROGRAMS

WIN LOST

CanadaUSAIrelandAustraliaSouth AfricaDo not applyDo not know

UKUSAAustraliaCanadaIrelandGermanyDo not applyDo not know

22,5%18,8%21,3%7,5%1,3%6,3%22,5%

26,3%20,0%6,3%5,0%5,0%1,3%6,3%29,6%

VOCATION COURSE

WIN LOST

CanadaUKUSASouth AfricaIrelandDo not applyDo not know

USAUKAustraliaNew ZealandCanadaSouth AfricaGermanySpainNo countryDo not applyDo not know

37,5%26,3%25,0%2,5%1,3%2,6%6,3%

32,5%16,3%6,3%5,0%2,5%1,3%1,3%1,3%18,8%1,3%13,8%

LANGUAGES COURSE

WIN LOST

CanadaUSAUKIrelandAustraliaSouth AfricaNew ZelandDo not know

USAUKAustraliaNew ZealandCanadaSouth AfricaSpainIrelandItalyDo not applyDo not know

60,0%11,3%10,0%8,8%6,3%1,3%1,3%1,3%

38,8%25,1%8,8%6,3%5,0%2,5%2,5%1,3%1,3%2,5%8,5%

HIGH SCHOOL

WIN LOST

CanadaUSANew ZealandAustraliaUKDo not applyDo not know

USAAustraliaUKNew ZealandCanadaGermanySpainSwitzerlandDo not applyDo not know

42,5%25,0%11,3%5,0%2,5%3,8%8,8%

46,3%11,3%8,8%5,0%2,5%1,3%1,3%1,3%3,8%18,8%

Base: 80

USA wins with graduation and postgraduation

Q. Thinking in the last decade, which country won more students (read each modality type)? (SPONTANEOUS AND ONLY ONE PER LINE)

GRADUATION

WIN LOST

USACanadaUKAustraliaSpainSwitzerlandDo not applyDo not know

USAUKCanadaAustraliaNew ZealandNo countryDo not applyDo not know

32,6%11,3%6,3%3,8%1,3%1,3%6,6%36,3%

13,8%13,8%3,8%2,5%2,5%10,0%6,3%47,5%

POSTGRADUATION

WIN LOST

USAUKCanadaAustraliaSpainSwitzerlandDo not applyDo not know

USAUKCanadaAustraliaFranceIrelandNo countryDo not applyDo not know

27,5%15,0%8,8%3,8%3,8%2,5%6,3%32,6%

18,8%15,0%2,5%2,5%1,3%1,3%10,0%6,3%42,5%

Base: 80

Canada, France and Spain still being the preference for learning languages

Q. Today, what is the main destination for students who want to study English? / Q. And what is the main destination for those who want to learn French? / Q. And who wants to learn Spanish? (SPONTANEOUS AND UNIQUE)

Comparing the data from 2011 and 2013, the three countries most wanted to learn English, French and Spanish, remain the

same.

65,0%

23,8%

1,3%

8,8%

1,3%

71,8%

19,7%

2,8%

Espanha

Argentina

Chile

Não Sabe/Não trabalha

Peru

2013 2011

82,5%

13,8%

3,8%

76,1%

16,9%

7,0%

França

Canadá

Não sabe

2013 2011

66,3%

17,5%

15,0%

1,3%

60,6%

21,1%

15,5%

2,8%

Canadá

Estados Unidos

Reino Unido

Austrália

Irlanda

2013 2011

France

Canada

Do not know

Canada

USAUK

Australia

Ireland

SpainArgentina

ChileDo not know / Do not work

Chile

Class C: new market opportunity

Q. To finish I will read a few sentences and I would like you say if you agree or disagree with each one. (STIMULATED AND ONLY IN LINE)

76,3%

16,3%

2,5%

3,8%

1,3%

Concorda totalmente

Concorda parcialmente

Discorda parcialmente

Discorda totalmente

Não sabe

Hoje a classe C procura programas de educação no exterior

70,0%

18,8%

8,8%

2,5%

Concorda totalmente

Concorda parcialmente

Discorda parcialmente

Discorda totalmente

Hoje os programas de intercâmbio esão mais acessíveis para a classe C

92,0%

88,8%

Today the class C looking for education programs abroad

Totally agree

Partially agree

Partially disagree

Disagree

Do not knowToday the exchange programs are more accessible to class C

Totally agree

Partially agree

Partially disagree

Disagree

Base:80

Internet expands the access

Base:80

70,0%

26,3%

1,3%

2,5%

Concorda totalmente

Concorda parcialmente

Discorda parcialmente

Discorda totalmente

A internet facilitou o acesso direto dos estudantes para realizar intercâmbio

When asked about the easy offer by the internet to the students interested in planning an exchange program, over

95% of the respondents realized this scenario (strongly agree + partially

agree).

The internet has facilitated the direct access of students to perform an exchange program

Totally agree

Partially agree

Partially disagree

Disagree

The business for the next years will be successful

Base:80Q. Thinking about the future, how is the development of business in the international education market? (MULTIPLE AND SPONTANEOUS)

75,0%POSITIVEASPECTS

31,3%NEGATIVEASPECTS

7,5%NEUTRALASPECTS

Positive and negative aspects

Base:80Q. Thinking about the future, how it is the development of business in the international education market? (MULTIPLE AND SPONTANEOUS)

Investment in professional career

Increase in demand for language courses

Popularization of the exchange programs

Economic stability

Purchasing power of the class C

The internet can disrupt the market

Market stability

Conclusions• The market of the educational and cultural travel organizers in Brazil remains

concentrated , a limited number of agencies are responsible in a large part of sending students abroad.

• With the information collected is estimated that the market moved U$1,027,775,065 in 2012.

• Most exchange agencies are formed by micro and small companies, with up to 10 employees.

• The class C has a growing market share, is the new public of the exchange agencies.

• The predominant age range of the exchange students is 18 to 30 years old.

• Canada appears as the most preferred destination of students and as the country that won in various types of courses

Conclusions• There is a traditional choice when the student choose a country to learn a

language. Canada, France and Spain dominate in preference

• Malta, South Africa and China were the new countries of destination of students in 2012

• Course language is the most popular, and according to the data collected, it can expand its market share

• The internet can be combined as a way to publicize the agencies, but can also threatens the services offered by the companies due to facilitate the access of students to conduct their own travels.

• The perspectives for the market are positive and promise an increase in business for the exchange agencies.

BELTA

BELTA

• Non-profit civil society, founded in 1992

• 1st association into the International Education field in Latin America

• Congregates 72 members

• Covered by Regional Coordinators all over Brazil

• New members admission: upon demonstration of integrity before the market and a conduct in accordance to the Social Statute and association’s Code of Ethics

• Associated companies are committed to acquainting, promoting, intermediating and executing education and exchange program services in Brazil and overseas

• Partnership with Embratur and Ministry of Tourism

BELTA

STM Language Star AwardsWinner for five time the Agency

Association by STM (Study Travel Magazine) Language

Star Awards and had enter to Hall of Fame

SÃO PAULO (21)SÃO PAULO (21)ABC InternationalBILBOSCICultural GlobalEducation AbroadEFExperimentoFriends in the WorldIntercâmbio ConnexionIntercâmbio GlobalJust IntercâmbiosLondon ConnexionMoinho TravellerMundial IntercâmbioSISSTBStudy N’TravelThis WayUpwardYázigi Travel

RIO DE JANEIRO (4)RIO DE JANEIRO (4)AFSCP4ICCEInternational Schools

ESPÍRITO SANTO (1)ESPÍRITO SANTO (1)IE

MINAS GERAIS (10)MINAS GERAIS (10)Beth CoutinhoCentral do EstudanteDMPETCFITIEPIntervipMaster ExchangeNumber OneUpgrade

SALVADOR (1)SALVADOR (1)BEX

SANTA CATARINA (3)SANTA CATARINA (3)Cultural AdventureInterculturalTravelmate

CURITIBA (2)CURITIBA (2)ImprovementWorld Study

GOIÁS (2)GOIÁS (2)Aiusa/Inter-BrasilHigh Connections

RIO GRANDE DO NORTE (1)RIO GRANDE DO NORTE (1)Cia do Intercâmbio

CEARÁ (1)CEARÁ (1)International Center

PIAUÍ (1)PIAUÍ (1)Embarque Educacional

MARANHÃO (1)MARANHÃO (1)Via Mundo

48 Belta associatesAround 600 agencies in Brazil90% of the Brazilian market

BELTA

Belta Magazine (EI! Magazine)Belta Magazine (EI! Magazine)

•Associate’s Profiles and Information

•30,000 copies distributed for free plus online version

•Targeted for final clients and students all over Brazil

BELTA

Belta Online – www.belta.org.br Belta Online – www.belta.org.br

•35,000 visits per month

•31,000 registered users

BELTA Feira do Intercambista - 2013 Feira do Intercambista - 2013 March 02, 03 - 14th edition

São Paulo - Brazil

THANK YOU

Carlos Roblespresidencia@belta.org.br

www.belta.org.br +55 11 2638-9663