Brazilian outbound sector optimistic for further growth, agents more important than ever

The Brazilian outbound market is continuing to grow after a post-Covid boom with increases across several products and new destinations emerging, while the role of the agent has become even more important, StudyTravel Magazine heard at the recent ST Alphe Brazil conference.

Taking place in Sao Paolo last week, ST Alphe Brazil 2024 welcomed more than 90 agents to meet with educators and service providers from around the world, and StudyTravel Magazine spoke to agents about the latest trends and developments.

Growth prospects in 2024

Brazilian agency association BELTA  found that the sector exceeded 2019 levels in 2022, with an average 18 per cent growth for agents surveyed.

The association will release its market research on 2023 in May, but President Alexandre Argenta  told StudyTravel Magazine that the report is likely to show an increase on the back of a very strong first half of the year. Although the post-Covid boom slowed slightly at the end 2023, he is optimistic of a further five per cent increase this year.

“For sure 2024 will be our best sales year ever,” enthused Cesar Vieira , CEO at IE Intercambio , adding that figures last year were approximately double 2019 levels for the company. “We are not alone in that we are surfing a huge moment,” he said. “This is not demand that will go down.”

Ana Beatriz Faulhaber , Director of CP4 Cursos no Exterior/ Traveller , agreed. “We are increasing, as the BELTA research shows. The market is getting to be very mature.”

Lucas Tuchtenhagen , Director at TAG Intercâmbios & Viagens describes 2024 as ‘Year 0’, given that there was a lot of post-Covid credit and deferrals being used until now. “This year is a new market with new money,” he said.

NR Intercâmbio is seeing growth this year after the post-pandemic stabilization last year, according to Director Victoria Barros ; the current year has started well for TKS Intercâmbio , with more requests than previously, advised General Director Frederick Zerey ; and Gabriel Franco Lopes at Grow Up Intercâmbios said business is growing, driven by word-of-mouth referrals and a lot of repeat bookings.

The Collection – Experiences for Life was launched as a new agency in 2020 specialized in high school, young learner and family programs, and this year’s sales are already above 2023 levels, reported Fernanda Paes de Barros , Business Development Manager.

Study abroad skills essential

Agents were also confident that the current upward trend is stable as international education becomes an integral tool in career development.

“Study abroad is more important than ever,” argued Ana Beatrice. “The soft skills are fundamental for students to become global citizens.” As such, students want to have a ‘plus’ option, often starting with language before they move on to specific, career-related courses. “By doing this, we take the myth out of the impossible,” she said. “We need something different for them.” Fernanda agreed, arguing that students are looking for the skills to change their lives, but need the basis of language skills initially.

TAG works in both the tourism and educational sectors, and Lucas sees a distinct shift towards the latter, with students keen on more professional and career-related products. “Learning English is not a difference, it is fundamental,” he opined.

Growth products and trends

As such, higher education has been a growth area, and Cesar advised that around half of IE’s investment is in this area. Ana Beatriz agrees and said that higher education is growing, particularly for Canada, the UK and the USA.

“The market is so mature there are good numbers for everything,” said Alex, who is also CEO of TravelMate Intercâmbio . “The junior market is larger than before, and there is more demand for expensive independent boarding schools.” The study and work segment is also strong, according to Cesar.

Another trend identified by Ana Beatriz is that younger students are expecting technology to be a part of their program, as they are now very used to using it in their own schooling.

Destinations

Canada, the USA, the UK, Ireland and Australia are typically the main destinations for Brazilian agents, as highlighted in BELTA’s annual research.

Brazilian agency association Belta exhibiting at ST Alphe Brazil 2024.

Cesar reported that Malta and Dubai are growing as destinations, while Ana Beatriz agreed on Malta and said that there has been a K-pop-fueled growth in demand for Korean language study, and also Italian as a common third language spoken in Brazil due to family connections.

Prior to the event, four BELTA member agencies had undertaken a fam trip organized by Education New Zealand . One of the participants, Maura Leao, CEO of Yazigi Travel , said there were a lot of opportunities for New Zealand in the Brazilian market, although schools need to be more visible to take advantage.

Challenges

As Canada is definitively the number one destination for Brazilian students, the recent announcement of a cap on study permits in post-secondary courses below master’s level, will have an impact. But Alex highlighted that students will “find another way”. Cesar agreed and said that students are not giving up, but may alter their study plans. “Its time for other destinations,” he said.

While Australian educators and agents in several markets have reported high visa denials of late, Alex advised that this has not yet been an issue in Brazil.

For Gabriel the largest challenge currently is finding new agency staff to keep up with the growth in demand.

Erica Giovanetti , Operations and Product Manager at FYI Intercâmbios e Viagens , is also a psychologist and makes an interesting observation that the impact of the home schooling of high school students during the Covid-19 pandemic has made some students comfortable at home and less inclined to look to the adventure of a study abroad trip.

However, the current graduating cohort is the last high school year affected, and Erica sees less of an issue with the younger students. Indeed, the company has received more enquiries for 2025 than for the current year.

Ana Beatriz notes a threat from schools marketing directly in the market, but she highlighted that students will not be protected by consumer laws.

The role of agents

As such, she highlights the ever-more important role of agents in the study abroad process. “We have very good agencies in this country,” she said. “BELTA is working hard to promote the sector.”

Cesar is also keen to demonstrate to partners worldwide that agents are fundamental to the outbound sector in Brazil, accounting for the vast majority of bookings. “There is a cultural part of the story. For many students, this is a big investment, a once-in-a-lifetime opportunity, so they want to talk and make sure they are making the right decision.”

Brazilian agencies have also established banking partnerships that make split payments a possibility, which makes it easier for students to finance their study abroad trips.

“In my view, Brazil remains a significant hub for agency recruitment in the language and travel sector, with payment methods playing a crucial role. The country’s middle class, comprising the majority of the population, drove market growth last year. To finance study abroad investments, middle class families typically opt for payment plans of up to 48 months through agencies, utilizing familiar and accessible financial tools ingrained in Brazilian culture, such as instalment purchasing,” Cesar said. “This makes a strong incentive for using agents.”

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