As higher education-focused strategic marketing and consulting experts, our clients often ask us: What are the most important factors that administrators need to pay attention to regarding online education at this moment? 

To remain competitive, colleges and universities must take a step back to understand the current trends in online education. Institutions can no longer afford to implement an online program without a purposeful strategy; doing so could be costly and a waste of valuable—and often limited—resources.

Our most recent report focuses on data collected from business school deans across the U.S., gaining insight into the roadblocks and shifts happening in the MBA market.

To help higher education institutions adopt a strategic approach to shifts in the MBA marketplace, we’re compiling some of our most important takeaways from the Business School Deans’ Survey Report.

MBA Modality: The Continued Rise of Online MBAs

Now that the dust has settled from the COVID-19 pandemic, online education continues to gobble up market share from other modalities.

As seen below, national trends show relatively flat MBA enrollments overall, but a growing demand for online MBA programs over the last five years. The 2024 Business School Deans’ Report reflects these trends; online programs are becoming the most common offerings in the business school portfolio.

Despite the rise in online programs over the years, some institutions are behind in adoption. The reality is, business schools without online MBA programs are likely to struggle to remain competitive in the market.

“The days where you could survive entirely by being the only MBA provider in a 100-mile radius? They’re gone,” says Jeff Brown, former Dean of the Gies College of Business at the University of Illinois. “Now they can come to great institutions—like us—with high-quality online MBA programs.”

Business school deans who were surveyed for the 2024 report predict that credit hours devoted to in-person business courses will decline by 9% over the next five years at their institutions. 

Interestingly, they also expect the hybrid modality to gain traction more quickly than online programs, anticipating that hybrid modalities may surpass in-person offerings altogether.

While long-term ramifications are yet to be fully realized, business school leaders need to anticipate the potential positive and negative impacts on their programs should these trends come to fruition. This includes how a shift in portfolio or modality strategy may have a trickle-down effect that influences the programs’, and potentially the school’s, positioning. Such shifts in strategy may also impact which target audiences may or may not be attracted to program offerings.

Further, it will be important to account for the added expenses that come with additional technology and faculty hiring requirements to support high-quality online courses.

Need help shaping your strategy amid these changes to business programs in higher education? Our consulting team is here to help.

What Online Modalities Mean for Tuition and Revenue

To help our clients make strategic decisions about tuition rates, we recently conducted extensive analyses of tuition within business schools offering full-time, part-time, and online MBA programs. One of the primary findings was that the tuition rates for online MBAs are, on average, 20% less than full-time MBAs and 10% less than part-time MBAs. Because online MBAs are driving MBA program growth, this leaves a potential revenue gap for many business schools to fill.

While the deans we surveyed did not report a substantial cost difference to their business schools in offering an in-person, hybrid, or online program, they did express concern for the revenue ramifications of online MBA proliferation.

As compared to our previous report in 2021, more deans today believe that quality brand, low-cost, online MBAs will have a greater total market share in the next five years, an indication that concerns around revenue challenges are likely to continue. 

Interested in learning how your business program can prepare for the enrollment cliff? Schedule a call.

So what are business schools going to do to stay ahead of this? 

As online education continues to grow in popularity, traditional business schools are facing increasing pressure to adapt and innovate. The business schools that take a proactive approach to mitigating challenges in revenue shifts are the ones that will gain the competitive advantage in a volatile market.

A majority of surveyed deans are planning to counterbalance the expected MBA program revenue declines by expanding the number of degree and/or non-degree product offerings. 

While diversifying the business school portfolio certainly has the potential to generate additional revenue, schools should be careful not to fall for the belief that “if you build it, they will come.” This mindset can result in significant expenditures without necessarily achieving the desired enrollment outcomes.

“Instead, make sure you are leveraging the right data to inform your overall strategy.” According to Steve Shriberg, Vice President at Eduvantis, “Strategic planning and data-driven decisions are key to transforming challenges into opportunities for growth, not just fishing in a different pond with different bait and crossing your fingers.”

An alternative approach could involve optimizing programs that are already in place—including the MBA. This is often a more effective and cost-efficient strategy for revenue generation. Remember, though: optimizing existing programs still requires careful planning backed by market data to facilitate important programmatic decisions and gain buy-in from all stakeholders, including faculty. 

Want to know how to optimize your existing programs to prepare for long-term revenue generation? Schedule a call with our consulting team.

Final Takeaways

The rise of online and hybrid MBA programs presents both a challenge and an opportunity for business schools. As the demand for flexible, accessible education continues to grow, institutions must adapt to remain competitive.

At Eduvantis, we see this moment as a pivotal opportunity for business schools to innovate and strategically position themselves for future success. “Embracing the shift to online and hybrid modalities is not just about keeping up,” says Tim Westerbeck, President of Eduvantis. “It’s about leading the way in a new era of education.”

Using our expertise and market insights, we guide institutions through the complexities of this evolving educational environment, helping them not only to navigate but to thrive amidst these changes.

Get the full 2024 Deans’ Survey results

To explore the full insights from our 2024 Business School Deans’ Survey and understand how your institution can adapt to these shifts, request your free copy of the report here.

Navigating the evolving online education market is a steep challenge. With a strategic partner like Eduvantis, you can turn these challenges into stepping stones for success. Schedule a consultation with our team today to start shaping your institution’s future.