Language Training Market in Germany

0. Executive Summary

0.1 Aim and scope of the report

This detailed analysis of the German student exchange sector is intended as market intelligence for Canadian language schools, stakeholders in public school districts, and education providers. The report

• examines the outlook for the German source market, taking into account the current economic conditions and the prevailing mood of consumers.
  
  
• provides statistical information on language skills and attitudes towards language learning in Germany.
  
  
• identifies the major trends in the German student exchange market.
  
  
• analyzes the distinct roles played by agents and operators and explains the crucial differences between them.
  
  
• assesses German perceptions of Canada both as a country and as a destination for international high school students.
  
  
• lists the key players in the market, and provides data on student numbers and details about Canadian partners.
  
  
• examines the associations and institutions that influence client perceptions of student exchange and booking behavior.
  
  
• presents a statistical overview of target languages and destinations chosen by German clients.
  
  
• presents the results of a wide-ranging survey questionnaire submitted to key firms.
  
  
• incorporates the views of key managing directors and specialists on Canada based on in-depth interviews.
  
  

0.2 Summary of the main results

Economic outlook and the student exchange market in 2007

Germany's economic outlook has been steadily improving, with forecasts continually upgraded in recent months. Predictions within the student exchange industry range from restrained optimism to forecasts of 20 percent growth in student numbers; Canada is viewed as a beneficiary of the general upswing.

Attitudes to student exchange in Germany

Germany's openness to international education is not due to a lack of local capacity but rather to the notion that secondary school education is as much about character development as it is about academic advancement and qualifications. Indeed, studying abroad is perceived in Germany as a life-enhancing experience promoting greater independence, understanding for others, openness, friendship and tolerance.

Agents and operators

In Germany and Switzerland, the distinction between an agent and an operator is crucial and as such should be taken into account by all education providers considering the market.

An agent passes clients on to a service supplier that acts as the contracting partner (local terms of business of the supplier's domicile apply). On the other hand, an operator (Veranstalter) acts as the sole contract partner of the client and is therefore responsible for the entire package (German package tour laws apply).

The German partner: a key player

A German partner organization can offer key services that could not otherwise be provided by non-local schools from a distance. Co-operation between German organizations and non-local schools is therefore mutually beneficial and very much in the interest of the schools themselves which benefit from receiving a select group of well-prepared and linguistically competent students. Having clear expectations, such students are more likely to integrate quickly and confidently.

Questionnaire results from key firms surveyed

• Canada's reputation both as a country and as an exchange destination is excellent.
  
  
• Clients choose Canada largely because students are able to select a particular region or a particular school and are assured of being able to undertake the subject or activity of their choice.
  
  
• Germans study in Canada not only to obtain education and qualifications unavailable in Germany but also to enjoy a life-enhancing experience that includes immersion in a foreign culture.
  
  
• All aspects of student care, e.g. airport transfers, host family screening and regular contact with a local co-ordinator, are key selection factors.
  
  
• Program prices are an important consideration; a more disciplined and conservative attitude to price increases is strongly recommended.
  
  
• Spot-on documentation, fast and reliable routines and a readiness to quickly follow up on queries or complaints are critically important. Canadian institutions were mostly rated "very good" or "excellent" on these points.
  
  
• Strong long-term relationships and personal contacts are important.
  
  
• Some 65 percent of respondents indicated they were very satisfied with the programs offered by their Canadian partners. No negative comments were received.
  
  

Interviews with key managing directors and Canada specialists

Most operators have long-standing business relationships with their Canadian partners which they are pleased to continue. There is, however, growing dissatisfaction with unwarranted price hikes as well as warnings that the traditional notion of cultural exchange is being replaced by the single-minded pursuit of profit.